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State Aid Is Not Compatible With the Internal Market when it Contravenes other EU Rules*
Relief from a penalty imposed by EU rules is State aid that is incompatible with the internal market.
EU rules contain a standard exclusion: State aid cannot be declared compatible with the internal market when it is non-severable [i.e. cannot be separated] from a violation of EU law. Yet, cases involving non-severable violations of EU law are rare.
The measure that is reviewed in this article illustrates how the European Commission treats aid in such rare cases when an EU rule in another policy area is contravened.
After a formal investigation, the Commission concluded in decision 2017/1441 that a Polish scheme for aiding milk producers was incompatible with the internal market.
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