Intra-State Transfers and the Discretion of Public Authorities* Resources transferred from one public authority to another for the purpose of being used to subsidise undertakings do not fall within the scope of Article 107(1) TFEU if the recipient authority has discretion in their disbursement. Introduction A public authority that carries out economic activities becomes an undertaking that is subject to the prohibition of Article 107(1) TFEU. When the same authority receives funds to manage in its capacity as a public authority then it is necessary to identify the dividing line between its public tasks and its economic activities. Public transport services, which are economic activities, are often provided by operators that are owned by regional or municipal authorities. Such
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The EU Court of Justice rules that State resources transferred from one public authority to another for the management of public services are not State aid within the meaning of Article 107(1) TFEU (Hermann Albers)
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