Public Law
State Aid - Our Service
State aid takes various guises. A four part test determines whether State aid is present in any arrangement. Examples include cash injections from the public to private sector, provision of training, support for R&D, support for SMEs, and guarantees.
State aid is in principle unlawful unless it has been approved by the European Commission. However, there are legal ways of levering in State support by planning ahead and dealing with State aid issues upfront.
The "stick" is that unlawful state aid must be repaid by the recipient, with interest. The "carrot" is that when a project is planned carefully, money can be legally provided from the public sector and this can achieve significant results e.g. the regeneration of a run-down area, provision of new facilities etc.
There are various options for clients. The European Commission has made exemptions which provide scope for State support on the basis of:
- the project type;
- the amount of money from the public sector;
- whether a company is receiving several sources of public funding (e.g. European Regional Development Fund (ERDF) monies plus grants);
- how much money the private sector is contributing towards a project;
- the size of the recipient company/organisation; and
- what a company wishes to do with the public funding e.g. train employees, conduct research, hire new employees.
In some circumstances, the European Commission may have approved a project scheme submitted by the UK government and as long as your plans fit in with the conditions of the scheme, you can take advantage of a 'pre-approved' exemption.
For large scale projects it may not be possible to fit in with a block exemption or a pre-approved scheme. We have experience in putting together notifications to the European Commission, including liaising with UK government departments for submission to enable larger scale projects to go ahead once approval is obtained.
For companies with public service remits and in receipt of public money, we can advise on State aid compliance programmes and provide training programmes for employees involved in all relevant aspects of business from finance to local delivery.
Our wide client base means that we have developed several areas of sectoral expertise including: transport (air, sea and land) and public transport organisations/companies, ICT companies, and companies heavily committed to R&D.
We are also experienced in submitting official complaints
to the European Commission where a company feels that it is suffering
as a result of a competitor having received State support in contravention
of the State aid rules. Competitors also have the option of seeking interim
relief and/or damages before national courts.
For details of our State aid experience please click here
For further information please contact: publiclaw@mcgrigors.com
Public Law