State aid, EU law, European Commission, competition, internal market, proportionality, necessity, TFUE, Article 107, Article 108
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Abstract
This document outlines the strict justification criteria for state aids, derogations from the principles of prohibition, and the role of the European Commission in authorizing aid.
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[...] States must notify any aid before its implementation, at the risk of recovery. ? Stardust Marine judgment (ECJ, 2002), where an unnotified aid was annulled. - The requirements for transparency and notification ? The Commission has strengthened the notification obligations through regulations such as the 1999 procedure regulation, revised in 2014 to include measures of cooperation between national and European judges. The limits imposed by European judicial control - The legality control of the Commission's decisions ? The TEU and the CJEU ensure that decisions respect the fundamental principles of EU law. [...]
[...] State aids represent a form of public intervention allowing to support specific enterprises or economic sectors. However, this intervention is not without risks for the integrity of the EU's internal market. In fact, Articles 107 to 109 of the TFEU establish a general ban on state aids, based on the need to prevent distortions of competition and ensure equal treatment between enterprises of different Member States. Article 107, paragraph qualifies as state aids, and therefore prohibited, public interventions that, in any form, favor certain enterprises to the detriment of others, distorting or threatening to distort competition. [...]
[...] However, the justification of state aids is not without limits. These limits originate from several imperatives. On the one hand, the respect of the principles of proportionality and necessity requires that public intervention be strictly framed, avoiding any excessive distortion of competition. On the other hand, the central role of the European Commission and the notification requirements provided for in Article 108 TFUE strengthen ex ante controls of aids, while the judicial control exercised by the Court and the CJEU aims to ensure a consistent application of the law. [...]
[...] The principles of proportionality and necessity as intrinsic limits - Proportionality ? Aids must be limited to the strict necessary to achieve their objectives, avoiding any overcompensation. Altmark judgment (CJCE, 2003), which defines four criteria to exclude the qualification of aid. - Necessity ? The demonstration of the absence of less restrictive alternatives is essential. The European Commission often requires a detailed analysis, as indicated in the 2014 guidelines on rescue and restructuring aid. II- The relative limits of justifications for state aid The procedural constraints imposed by the European Commission - The central role of the Commission in authorizing aid ? [...]
