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> There is a general prohibition on EU member states granting state aid to companies The EU hands out billions in direct aid to companies every year. Many time
by carlosjobim 2y ago
> There is a general prohibition on EU member states granting state aid to companies
The EU hands out billions in direct aid to companies every year. Many times together with the country governments. So there's no such prohibition in practice. In the EU regions I am familiar with, at least 70% of companies live on getting subsidies from the EU mainly and income from actual customers as a secondary concern. And I'm not talking about agriculture, but every industry.
Few businesses will even start any economic activity before they've received at least a hundred thousand in subsidies and investment grants. Not loans, which is a different matter.
Just one example: https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility_en https://commission.europa.eu/business-economy-euro/economic-...
- kranke155 2y agoThe EU does that, yes. He’s saying countries can’t do that to their own industries, however, which I am led to believe is correct.
- qwytw 2y agoI think it applies only to aids for specific companies? e.g. if all companies that satisfies some requirements (e.g. N number of employees/new jobs , specific geographic area, industry etc.) cam receive the aid it's legal.
- toyg 2y agoCorrect. This said, if the incentives are tailored a bit too much (i.e. there is clearly only one company that satisfies the prerequisites), it could be challenged as state aid. You still need someone to start the challenge though - either a competing company or a Commissioner.