Market economy investor

 

Institution Definition

The Market Economy Investor Principle or MEIP has been a cornerstone of state aid control since at least 1984 when the Commission published its communication on Government Capital Injections. It remains a key test of whether actions by public authorities represent state aid in the sense of Article 87(1) of the EC Treaty. (...) The essence of the MEIP is that when a public authority invests in an enterprise on terms and in conditions which would be acceptable to a private investor operating under normal market economy conditions, the investment is not a state aid. One first point to note is that the 1984 communication does not in fact identify, of the various criteria which a measure must meet in order to qualify as state aid, which is not met by a state investment respecting the MEIP. It seems clear, however, that the criterion which is not met is that of advantage: the enterprise gains no particular benefit since it could have obtained the same financing in the markets (...). © European Commission

 
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