ARTICLE : STATE AID - QUALIFICATION - COMPENSATION - COMPENSATION FOR BUSINESS COSTS - PUBLIC SUPPORT - GENERAL INTEREST - PUBLIC SERVICE

Qualification as State aid and compensation for business costs

A measure can be classified as State aid only if it gives an advantage to an undertaking. The advantage will disappear when the measure is just a way to compensate some costs to which the undertaking has to face. But the distinction between costs that can be compensated without leading to the classification of the measure as State aid and those that cannot be compensated without leading to such a classification is far from easy.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. Classically, in order for a measure to be classified as State aid within the meaning of Article 107(1) of the Treaty, the European Courts have held that, 'first, it must be an intervention by the State or through State resources, secondly, that intervention must be liable to affect trade between Member States, thirdly, it must confer a selective advantage on the recipient and, fourthly, it must distort or threaten to distort competition' [1]. The advantage is thus an essential condition for State aid. It is true that the concept of State aid cannot be reduced to that of an advantage. The four conditions referred to in the case-law are cumulative [2].

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

  • Université de Perpignan

Quotation

Cheik Galokho, Qualification as State aid and compensation for business costs, February 2019, Concurrences N° 1-2019, Art. N° 88881, pp. 56-65

Visites 615

All reviews