EU state aid law
EU state aid law has grown to become an important legal area when it comes to securing financing measures, especially regarding the public sector vis-à-vis (its own) companies. The structuring of financing measures in accordance with the state aid law significantly minimises the risks of any claims for repayment of the funds granted and any liability issues associated with such. Legal developments in this area are extremely dynamic. That is why it is particularly important to monitor this area.
Our approach
Our experienced legal experts provide comprehensive advice to public authorities and companies on all issues relating to EU state aid law and related areas of law (in particular, the laws regarding public procurement and grants).
Our legal advice always focuses on what is practical to support our client`s strategic and organisational purposes best. We combine tax, audit, and business management expertise from the Forvis Mazars partnership into our consulting team as needed to meet the requirements.
Our services
In the field of state aid law, we offer the following consulting services:
Strategic consulting
- For us, strategic consulting means that we begin advising before a planned financing measure and always consider the environment as determined by our client’s objectives. We handle legal issues with professional accuracy and develop practical legal solutions that serve the interests of our clients.
Objective: design measures that comply with state aid requirements
- The state aid-compliant design of public sector measures can significantly minimise the risks of repayment claims should the Commission conduct a review proceeding. For this reason, we always check whether a factual solution is appropriate, or even better – to eliminate any remaining risk – whether a justifiable solution should be sought, e.g., whether the GBER (General Block Exemption Regulation) and the SGEI (Services of General Economic Interest) Decision of 2012 should be applied.
Operations in accordance with the SGEI Decision of 2012
- We examine the prerequisites of the 2012 SGEI Decision, taking into account the decision-making practices of the Commission and the European courts, and draft entrustment Acts for the financing of companies that handle public service duties on behalf of public authorities.
Development of GBER documentation
- We examine the general and specific prerequisites for the GBER exemption with regard to certain public sector measures. The audit results are summarised in a document that serves as evidence for its own committees and will be subject to a thorough examination of the facts in the event of an audit by the Commission.
Restructuring, transactions
- We also provide comprehensive legal advice on the restructuring of (public) companies and economic activities of the public sector. It’s important here to avoid the restructuring risks outlined in state aid law. We support the transaction processes through due diligence under state aid law.
Factual solutions
- In the case of public sector measures, we examine whether there are any prospects of success with regard to proof that a market economy operator would have acted like the public authorities. If there are such chances of success, we have our business managers and engineers prepare a Market Economy Operator Test (MEOT), which is then used for documentation purposes.
Grants – subsidies
- Government grants play a crucial role in financing measures, in particular, investment measures (e.g., The European Investment Fund and the Structural Fund). We maintain an overview of the complex regulations and provide comprehensive advice on the complex links between budgetary law, grant law, state aid law, and public procurement law.
State aid and in-house arrangements
- Municipal companies, in particular, should often be commissioned directly by their municipal shareholders. We not only advise on public procurement law in the shaping of complex in-house arrangements but also on state aid law to prove that the conditions of such an arrangement correspond to those that a market economy operator acting in accordance with market principles would have entered into.
Notification to the Commission of awards of aid
- If the state aid element is fulfilled and no exemption options are available or an appeal entails too high a risk, we will report the measure to the Commission (if necessary, informally or as a precautionary non-aid notification) and provide guidance with the notification procedure.
