State Aid Law

State Aid Law in the European Union regulates how governments can support businesses financially. The main aim is to ensure fair competition within the EU market. When a government gives an advantage to certain companies—like grants, tax breaks, or loans—it may distort competition and affect trade between member states. Therefore, most forms of state aid need to be approved by the European Commission. The law ensures that such assistance is necessary, proportionate, and does not harm competition, thereby promoting a level playing field for all businesses across the EU.