What are the basic rules of state aid policy?
State aid policy is an important part of EU competition policy. State aid control comes from the need to maintain a level playing field for all undertakings active in the Single European Market, no matter in which Member State they are established, and to avoid Member States getting locked into a contest where they try to outbid each other to attract investment. Preserving competitive markets is the best way for European citizens to get the products they want, at low prices and to foster innovation and growth in the EU.The Treaty prohibits any aid granted by a Member State or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain firms or the production of certain goods in so far as it affects trade between Member States. A number of exceptions are however allowed. The Commission has the exclusive power to declare state aid compatible with the Treaty provided it fulfils clearly defined objectives of common interest and doe
