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State aid

What the EU does

According to EU legislation, support given by a Member State or through state resources should not unfairly impact competition and trade within the EU by favouring certain companies or the production of certain goods.  

To achieve this, the legislation sets specific conditions on “state aid”, which is defined as any type of advantage provided by national public authorities to specific companies on a selective basis. This can include grants, state-guaranteed loans, interest-free loans, tax relief or providing goods and services on preferential terms. State aid may be beneficial when it pursues public interests that prevail over the distortion of competition. The European Commission is responsible for assessing whether proposed aid meets this standard. 

By controlling state aid, the Commission helps to preserve a level playing field in the EU internal market and ensures that companies compete based on their merits, and not because they receive preferential treatment from a government. To monitor the impact of state aid, the Commission regularly collects data measuring how the Member States implement their state aid measures. 

Facts about state aid

In 2023, EU Member States granted aid to the amount of €186.78 billion or 1.09% of total GDP. This includes:

€55.32 billion
to support environmental protection and energy savings
€15.95 billion
to support research and development and innovation
€15.39 billion
to support regional development

Areas of action

Cases

Search the European Commission’s database of past and present state aid cases awaiting a decision

Complaints

Access the official complaint form to use if an unlawful state aid case is suspected

Legislation

See the different types of legislation in place that govern state aid in the EU

Procedures

Read more about the procedures that must be followed to process a state aid request, from notification and investigation to formal decision and recovery

National Courts

Find out more about the role national courts play in the application of EU state aid law

Scoreboard

Learn more about the Scoreboard, the Commission’s benchmarking instrument for state aid, published annually

Tax rulings

Consult the list of the Commission’s final decisions adopted since 2014 concerning tax planning practices and formal ongoing investigations with EU countries

Key achievements

EU state aid control delivers the following benefits to EU citizens and businesses:

  • It preserves fair competition between companies within the EU’s Single Market.
  • It ensures that public financial support is targeted to where the market cannot or does not deliver.
  • It prevents Member States from competing with one another with the use of subsidies, which would put smaller Member States at a disadvantage and increase the burden on taxpayers in all Member States.  

In addition, EU state aid rules are sufficiently flexible to address unforeseen shocks to the EU’s economy, as shown by: 

  • The State aid Temporary Framework, which helped EU countries weather the economic effects of the COVID-19 pandemic.
  • The State aid Temporary Crisis and Transition Framework which helped EU countries deal with the economic problems linked to Russia’s invasion of Ukraine, and  to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan.

In focus

Important Projects of Common European Interest (IPCEIs)

Important Projects of Common European Interest (IPCEIs) represent a significant contribution to economic growth, jobs, the green and digital transition, and competitiveness for the Union’s industry and economy. IPCEIs make it possible to bring together knowledge, expertise, financial resources, and economic actors throughout the Union and create positive spillover effects to the whole Union.

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