State aid matters

Pursuant to Article 107(1) of the Treaty on the Functioning of the European Union, unless otherwise provided, any aid granted by a member state or through state resources in any form which distorts or threatens to distort competition by favoring certain undertakings or certain manufacturing industries, is incompatible with the internal market if it affects trade between Member States. The assessment of foreign state aid often involves questions relating to the application of foreign law. These questions are of key importance for determining whether support provided in a given case constitutes state aid and arise mainly in assessing the characteristics of affected trade between member states or in assessing the nature of a foreign enterprise in state-aided projects based on international cooperation.

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