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State Aid (regulation of financial support by Government)

The strict regulation of state aid (financial/commercial support for businesses by governments) is a pillar of the system designed to achieve fair competition within the EU single market. The indications are that the current EU regime will continue to apply in the UK as part of a post-Brexit trade deal or, in the event of “no deal”. Businesses can therefore expect that the terms of the existing block exemptions (whether general or sector-specific) will continue to apply immediately after Brexit.  Following Brexit, enforcement of the state aid rules in the UK will be in the hands of the Competition and Markets Authority (CMA) (and no longer the European Commission) and notifications for the approval of aid will need to be made to the CMA. It is not clear what the position will be for those businesses which have, at the date of the UK’s withdrawal, outstanding (and undetermined) notifications made to the European Commission.

For more information please contact Stephen Cole.

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