Statsstöd

Statsstöd, in EU context often translated as state aid, refers to any aid granted by a member state or through state resources that could distort competition or affect trade between EU countries. It is governed by EU competition law, notably Articles 107–109 TFEU, which set rules to keep the internal market fair and undistorted.

The concept covers a wide range of instruments designed to support specific undertakings, products, or regions. Examples include direct grants, subsidized loans or guarantees, tax exemptions or reductions, selective subsidies, and public procurement practices that confer advantages to particular companies or activities. The aim is to address market failures or promote policy objectives such as innovation, regional development, environmental protection, or employment, while limiting distortions to competition.

State aid control is administered at the EU level. Most new aid measures must be notified to the European Commission before they are implemented, so the Commission can assess whether they are compatible with the internal market. Depending on the assessment, aid can be approved, approved with conditions, or blocked. Some categories of aid are exempt from prior notification under Block Exemption Regulations, or qualify as de minimis aid, which has a low ceiling over a set period and is subject to less stringent rules.

In practice, the use of statsstöd is intended to correct market failures and support public policy goals, but it must avoid unnecessary distortions of competition and respect limits on how and to whom aid can be granted. National authorities implement measures, but their design and implementation must conform to EU state aid rules.