Subsidies and State Aid

Government subsidies and public funding can determine whether an investment or innovation project goes ahead. At the same time, subsidy law and EU State aid rules are technical and enforcement is strict. Mistakes in applications, project implementation or reporting can trigger claw-back claims, repayment interest and reputational issues.

We help clients identify and manage these risks early. For funding recipients, we advise across the full lifecycle: from eligibility checks and application strategy to implementation, change management, audits and evidence of use. For funding entities, we support the design and rollout of compliant programmes, aligned with budgetary requirements and EU State aid constraints.

Who we advise and how we reduce funding risk

Our clients include ministries, funding entities, public-sector institutions, research establishments and companies seeking public funding for their investments or innovation projects. We provide advice on the following topics in particular:

• Budgetary requirements according to German Federal Budget Code (BHO), state budget regulations and administrative regulations
• State aid law at EU level
• Design and implementation of funding programmes
• Risks of claims, evidence of use for the designated purpose and compliance
• Third-party funding management in research, development and digitalisation

We help clients build legal certainty at each stage of a funding project. This includes national budgetary and subsidy law requirements and the European Union’s State aid framework, including the risk of recovery where support is classified as unlawful aid.

Services for funding recipients and funding authorities

For funding recipients:

• Advice when applying for funding
• Support in the planning and implementation of subsidised projects in compliance with subsidy law
• Legally compliant structuring of transactions to avoid the loss of subsidies or subsequent reclaims
• Support with compiling reports, preparing evidence of use for the designated purpose and compliance reports
• Defence against reclaims and representation in administrative and court proceedings

For funding entities:

• Legally compliant design of funding programmes
• Legal opinions on designing and implementing funding programmes
• Representation in administrative and court proceedings over disputed reclaims

EU State aid compliance, notification and investigations

EU State aid law can affect grants, tax incentives, guarantees, public loans and other support measures. We advise on whether a measure qualifies as State aid (including under Article 107 TFEU criteria), which legal basis may apply (for example, block exemptions), and when notification to the European Commission is required.

We also support clients in State aid proceedings, including complaints, information requests and investigations. Where risks arise during implementation (for example, changes to the project, beneficiaries or financing), we help adjust the structure and documentation to protect eligibility and reduce exposure to recovery.

Germany

State aid

Topic Germany

Fördermittel und Subventionen