Since 1 February 2020, the UK is no longer part of the EU. Until the end of the transition period (31 December 2020), EU state aid rules remain fully applicable in the UK. Unless an extension of the transition period is agreed between the UK and the EU (the Parties), the future relationship between any UK state aid system and EU state aid rules will depend on what both sides are able to agree to (or not) in a future EU – UK trade agreement, whatever form this may take. The big unknown today is whether the UK will embark on a path of `dynamic alignment´ in terms of its future state aid regime or whether it seeks genuine political and economic independence. Pending the outcome of the Parties’ future relationship negotiations, the EU Withdrawal Agreement (the EU WA) and the Protocol on
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The EU Commission and the UK Government agree on the UK’s EU Withdrawal Agreement, with important implications for State aid rules during the transition period
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