State aid and grant issues

State aid is a way of using public funds to finance an economic activity. Since such funding gives the recipient company an advantage over its competitors, there are rules governing the public sector’s ability to provide state aid.

State aid rules are complex. It is important that all parties involved (i.e. both donors and recipients) are aware of and can apply the rules in order to be able to use State aid when it is justified, while at the same time being able to avoid granting State aid when it is not authorised.

State aid rules can be triggered in many different situations, and an aid measure does not necessarily have to be a payment of money. In addition to pure grants, State aid can also be involved in the form of loans on favourable terms, guarantees or sureties, concessions or sales at a discount and purchases at a premium, etc. In some cases, State aid can also be involved when different requirements are applied to publicly controlled companies and private companies.

Unlawful state aid can be challenged in various legal proceedings, i.e. both in administrative and general courts. Recently, the number of State aid cases in the courts has increased. NORMA has experience in state aid issues and assists, among other things, with advice prior to planned aid measures, review and preparation of documents regarding aid measures and court proceedings regarding state aid. We can also assist in developing overall structural and policy work regarding state aid for your business.