As a result, it has been inclined to take a fairly tough line on state aid in this sector. State Aid Law and the Market Economy Operator Principle (MEOP) The Market Economy Operator Principle (MEOP) is a concept which has been developed by the Commission to determine whether a transaction entered into by a public body gives an advantage to a particular economic undertaking and therefore falls within the State aid regime. State aid is any advantage granted by a public bodies through state resources on a selective basis, to any organisations that could potentially distort competition and trade in the European Union. This is the starting point for case officers before proceeding to the State aid tests. 1. We use cookies to collect information about how you use GOV.UK. Tell us whether you accept cookies. The State Aid "Undertaking in Difficulty" test The European Commission apply a prohibition on undertakings in difficulty receiving aid under certain Articles of the General Block Exemption Regulation , the Temporary Framework and ERDF projects. In general, State aid is banned because of its anti-competitive effects. A basic guide to state aid rules. Is the support/funding given to an economic undertaking?

State Aid is a term that refers to forms of public assistance, using taxpayer-funded resources, given to undertakings on a discretionary basis, with the potential to distort competition and affect trade between member states of the European Union.

The Court of Justice first recalled that “(23) the private creditor test is not an exception which applies only if a Member State so requests, when all the constituent elements of State aid incompatible with the common market, as laid down in Article 107(1) TFEU, exist. Before the State aid tests can be applied it is necessary to establish whether the support is provided to an undertaking/s engaged in an economic activity. The definition of state aid is broad because ‘an advantage’ can take many forms. What is State Aid?