The ability of undertakings to benefit from state aid is subject to special requirements, and failure to meet the requirements creates a risk that the aid will be found to be impermissible. We support businesses in proceedings seeking to recover state aid and in situations where the aim is to avoid classification of aid as impermissible state aid.
What is state aid, and why is it so important to comply with state aid regulations?
State aid means awarding of support to an undertaking by the state or out of state funds, in any form. State aid is selective (favouring a specific undertaking), is more advantageous than would be available under market conditions, and may distort competition between undertakings.
Under Art. 107(1) of the Treaty on the Functioning of the European Union, such aid is generally prohibited, but may be regarded as permissible under certain exceptions.
Challenges for firms in connection with state aid
- The risk that support may be found to be impermissible state aid
- The inability to obtain supporting funds
- The need to comply with the rules and obligations set forth in co-financing agreements
- Advantages obtained by competing firms as a result of obtaining state aid
Legal advice on state aid—benefits for firms
KPMG Law support in the area of state aid
We offer advisory services in the area of state aid for beneficiaries, state authorities granting aid, and competitors of state aid beneficiaries.
As needed, we will appear as representatives or advisors before the European Commission, the General Court, the Court of Justice, or national courts. Our advice for investors includes structuring the funding for a transaction to avoid the risk that specific projects will fall under state aid regulations, as well as representation in state aid transactions.
We also represent beneficiaries in proceedings involving the award of state aid, including from EU funds, with respect to the obligation to ensure project durability, requirements for novelty and innovation, investment obligations, and other obligations imposed in funding agreements.
Submit request for proposal (RFP)
Learn more about how KPMG knowledge and technology can help your business.
Click to start
