Topic VII - State Aid Flashcards
(20 cards)
Why does the EU restrict state aid?
To prevent distortion of the internal market by giving advantages to products or companies from specific Member States.
What article of the TFEU regulates state aid?
Article 107.
What constitutes a burden to the state in state aid?
Loss of revenue or resources due to tax cuts, subsidies, or below-market loans.
What was controversial about Real Madrid’s land swap?
They received more valuable land, possibly amounting to state aid.
How can tax exemptions be state aid?
They cause loss of state revenue and selectively benefit certain companies.
When does a loan become state aid?
When it’s granted at a below-market interest rate, reducing expected revenue.
What makes an investment state aid?
When a state pays above market value for shares, acting irrationally.
What are feed-in tariffs?
State-mandated payments to renewable energy producers, funded via taxes and granted to TSOs.
What is the second requirement for identifying state aid?
Advantage to selected undertakings not available to all.
What is the Regione Sardegna case about?
Prioritizing local boats for tourism aid, giving unfair advantage.
What is the third requirement for state aid?
The aid strengthens the market position of an undertaking and distorts competition.
Why was the RM tax exemption considered state aid?
It gave RM an unfair advantage in the internal market over foreign clubs.
What is an example of local aid that wasn’t state aid?
Basque schools teaching Basque only within the region.
Who usually brings state aid complaints?
Competitors not receiving the aid.
What happens if aid is found to be unlawful?
The recipient must return the aid to the state.
What are the three main exceptions that make state aid compatible with TFEU?
Aid with a social character, aid for natural disasters, aid to East Germany.
What are additional exceptions for compatible state aid?
Aid for underdeveloped areas, EU projects, economic activities, culture and heritage.
What are block exceptions in state aid?
Pre-approved aid measures that don’t need prior Commission approval.
What is the State Aid Modernization Program?
An EU reform to streamline state aid control, focus on impactful aid, and improve transparency.
Why might state aid rules change in the future?
Due to increased defense spending and EU acting as a common debtor.
