state aids

state aids

part of the competition policy of the EUROPEAN UNION that prohibits Member States granting aid in such a way that it affects trade between Member States. The prohibition strikes at aid which confers an economic advantage on the recipient; it is granted selectively to certain enterprises or products; it may distort competition; it affects trade between Member States. Member States must notify such aid, and it maybe permitted as being in the general interest of the economy without distorting trade.
References in periodicals archive ?
State aids to other minor players were also authorised by the Commission: Dr A.
Mead deals with two emerging issues of relevance to financial executives whose companies are seeking to take advantage of the new opportunities presented by the single European market.- state aids and the harmonization of financial reporting.
The Commission has published two surveys of state aids in the EC, one covering the period 1981 to 1986, the other covering 1987 to 1988.
Companies considering expansion in the EC should be aware that investment and restructuring deals that take advantage of specific state aids may be in for active scrutiny by the Commission, depending on their size and significance.
Given these precautions, it still makes sense to include state aids in the overall consideration of a proposed investment in the EC.
The challenges range from developing a body of case-law in anti-trust matters or comprehensive lists of state aid - often linked to tax concessions and investment incentives - through to specific problems such as the status of subsidies in special economic zones or the process for restructuring major sectors.
In the preamble to the State Aid Scoreboard the Commission says; "The Scoreboard will be developed gradually in response to the needs of its various future user constituencies.
"This Register will not only complement information that is already contained in the Commission's annual Surveys on State Aid: it should reinforce the process of peer pressure", said Competition Commissioner Mario Monti.

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