EU State Aid Rules

EU State Aid Rules are regulations that ensure fair competition within the European Union. They control how governments support businesses to prevent favoritism that could distort markets. When a government gives financial help to a specific company or sector, it may create an unfair advantage over others. These rules seek to maintain a level playing field, encouraging competition and preventing monopolies. However, certain types of aid, such as for regional development or research, can be allowed if they promote overall economic growth without harming competition. Essentially, they balance state support with fair market practices.