The EC Competition team advises a range of public and private clients, in particular UK local authorities and regional development agencies or private beneficiaries, on all aspects of European State Aid law and practice.  This includes detailed advice on the application of the market investor principle as well as the conduct of consultations with national authorities (eg. BERR) and assistance in the notification process to the European Commission (including representation through Phase II investigations if necessary). 

We regularly advise on a host of multiple party regeneration projects, but also bespoke projects for the furthering of economic activity in particular regions, including:

• The setting up and administration of combined public and private risk capital funds.
• Joint R&D projects between regional authorities, higher education institutes and industry.
• Funding programmes for incentivising environmental improvements.
• Training grants for industry and transport.
• Infrastructure improvement programmes. 

The EC Treaty mandates that the giving of a subsidy by the State to a private undertaking thereby giving that undertaking an advantage, is prima facie illegal and incompatible with the EC Treaty.  However, State aided projects may be rendered legal via a number of routes including EC block exemptions, prior approved national schemes, individual notification or simple restructuring or amendment into projects not constituting aid such as market investor behaviour, services of general economic interest, or funding for the common good without the selectivity required to constitute State aid. 

If State aid is not granted legally, it may lead to investigation and condemnation by the European Commission.  This in turn can lead to a project being terminated or a public body being required to recover any illegal aid from a beneficiary at a later stage, plus interest, including bankrupting recipients if necessary.