Current European Union rules make it illegal for EU countries to give state aid to companies that would interfere with fair competition in the European internal market.
But in the wake of Brexit having been completed, there is the issue of whether the UK will continue to follow the EU regarding state aid. With the UK’s withdrawal agreement having signalled a commitment to preventing unfair competition, Rahman Ravelli’s Syed Rahman outlined for Law360 some possible future developments.
While the EU is keen for its members and the UK to be closely aligned when it comes to state aid, the UK is no longer bound by EU regulation. As a result, it can take an entirely different approach to that taken by EU countries.
This may be a course of action that is taken if the government decides that some struggling industries require assistance. But this may cause conflict with the EU - and in the European markets that the UK is keen to remain trading in.
Syed’s comments featured on Law360.