Fiscal State Aid

Fiscal State Aid refers to financial support provided by a government to businesses or industries, which can affect competition and trade. When a government offers tax breaks, grants, or subsidies, it might give a particular company an advantage over others. In the European Union, these types of aid are closely regulated to ensure they don’t distort competition within the single market. The aim is to maintain fair competition, making sure that state support doesn’t trap some companies unfairly while disadvantaging others, which can lead to an uneven playing field in the economy.