Subsidy Law

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Complex rules on state subsidies

The public sector provides subsidies in the form of grants, but also by means of low interest loans, guarantees, sureties and reduced prices when purchasing public property, etc. Providers and recipients of subsidies alike must comply with strict legal requirements to avoid the support being called into question. Key elements here include European state aid law, national budget laws and, for bidders, procurement law, with which they are generally required to comply when using the funds.

We advise both providers and recipients of subsidies

Our experts on subsidy law advise providers of subsidies when granting and monitoring the use of such funds, as well as recipients when applying for and using subsidies. This includes supporting them when subsidy providers carry out checks. We also advise on transactions in order to ensure that the transaction does not lead to loss of the subsidy or a subsequent request for repayment.

Where subsidies have been granted unlawfully or other issues arise, we advise both the public sector and the recipient of the subsidy in negotiations with the provider or during revocation or return proceedings, and also during any subsequent court proceedings.

Our subsidy law activities include:

  • Legal opinions on the lawfulness and lawful structuring of subsidies
  • Advice when applying for subsidies
  • Ensuring that transactions, privatisations and PPPs meet legal requirements
  • Compliance
  • Negotiations ahead of a demand to return subsidies
  • Representation in administrative proceedings and before the courts


Branden­burg ad­vised by CMS on sale of land to Tesla for giga­fact­ory
Ber­lin – Fol­low­ing in­tens­ive ne­go­ti­ations between the Fed­er­al State of Branden­burg and Tesla, the pur­chase agree­ment for the around 300-hec­tare site in Grün­heide, near Ber­lin, was not­ar­ised on 27 Janu­ary...