State Aid and EU funding: are they compatible?

Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.State aid involves the transfer of state resources. These are resources which are controlled by public authorities. EU funds which are granted directly to undertakings without coming under the control of a public authority of a Member State cannot be considered to be state resources. However, EU funds channelled through managing authorities become state resources and can constitute state aid if all the other criteria of Article 107(1) TFEU are satisfied.

European Parliament: European Parliamentary Research Service: In-Depth Analysis, April 2018: State Aid and EU funding: are they compatible? http://www.europarl.europa.eu/RegData/etudes/IDAN/2018/621778/IPOL_IDA(2018)621778_EN.pdf

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