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State Aid

State Aid consequences of Brexit

In terms of state funding paid to companies carrying on economic activities, there are currently no more restrictive rules than those laid down by European Union law on State aid.

Following its withdrawal from the EU, the UK might regain its freedom to support companies, granting them a selective economic advantage. EU rules on State aid will in fact cease to apply to the UK authorities which will only be subject to the restrictions imposed by the WTO Agreement on subsidies and countervailing measures. However, if the UK wishes to retain full and complete access to the EU internal market, it will have to comply with State aid rules.

In the hard Brexit scenario, the provisions of the draft agreement relating to the outcome of pending examination procedures and the scope of the European Commission’s powers regarding aid granted by the UK during the period of its EU membership, will not apply, unless an alternative solution is found.

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