Read on Twitter
Another #Brexit twist! The UK argues that financial support awarded by the European Commission itself should be regarded as State aid.
< a thread > https://www.thetimes.co.uk/article/brexit-boris-johnson-urges-brussels-to-play-fair-on-state-aid-rules-b35fq6rmm
< a thread > https://www.thetimes.co.uk/article/brexit-boris-johnson-urges-brussels-to-play-fair-on-state-aid-rules-b35fq6rmm
The EU will be pointing out that nothing has changed: this rule has been in place since January 1958.
Indeed large long term programmes like Horizon 2020 have been regarded as compliant with EU State aid rules on this basis.
Indeed large long term programmes like Horizon 2020 have been regarded as compliant with EU State aid rules on this basis.
However the EU’s repeated references to the “level playing field” seem rather hollow once you hear they plan to bring forward the €750 billion Covid19 recovery fund as “no aid” on this basis.
The UK is likely to also have concerns that EU State aid rules have increasingly made use of an exemption for “Important Projects of Common European Interest” ( #IPCEI).
It’s difficult to see how the UK would have a corresponding power under a UK regime. https://ec.europa.eu/commission/presscorner/detail/en/ip_19_6705
It’s difficult to see how the UK would have a corresponding power under a UK regime. https://ec.europa.eu/commission/presscorner/detail/en/ip_19_6705
Both concerns by the UK are legitimate, but ultimately solvable.
The EU needs to recognise that the UK is right to champion robust State aid controls and that the €750 billion fund is so large that element of MS control in decisions is very likely to emerge.
The EU needs to recognise that the UK is right to champion robust State aid controls and that the €750 billion fund is so large that element of MS control in decisions is very likely to emerge.
The UK needs to acknowledge it is not trying to change the fundamentals of the EU State aid regime, but rather build corresponding flexibility into its own domestic system of subsidy control.
The EU needs to acknowledge that such flexibility has been integral to the Commission’s success in overseeing subsidies.
Supporting similar flexibility in the new UK subsidy control regime can allow it to also become a long term success.
That’s in everyone’s interest.
Supporting similar flexibility in the new UK subsidy control regime can allow it to also become a long term success.
That’s in everyone’s interest.
The easy route to resolution is for the EU to block exempt the €750bn fund activities & invite the UK system to set up a corresponding safe harbour.
The harder question is how IPCEI will be handled - perhaps a joint committee to decide upon such proposals is the answer?
<End>
The harder question is how IPCEI will be handled - perhaps a joint committee to decide upon such proposals is the answer?
<End>
