State Aid

High-quality economic analysis is essential to reliably assess the cost and benefits of State aid, compliance with State aid rules, and the potential distortionary effects on competition in the marketplace.

Our European experts draw on leading expertise in competition policy and in-depth regulatory and industry knowledge to address the specific challenges of governments and State aid recipients. We assess, from an economic perspective, each of the relevant conditions set out in the guidelines for the type of aid at issue. Within this framework, we design and implement compelling quantitative and qualitative analyses that provide robust evidence to advance your case.

We advise on case strategy and prepare economic submissions to authorities and expert reports to assess whether the support is compatible with European Commission State aid rules. This may involve some or all the following steps:

  • Perform a Market Economy Operator Principle (MEOP) test to evaluate whether given measures constitute State aid. This involves estimating the rate of return and calculating the net present value of an investment project supported by the measure;
  • Compare the net present value of an investment with and without the aid to assess its incentive effect;
  • Assess the extent to which a proposed measure may lead to a distortion of competition in favor of the State aid recipient; and
  • Where required, assist the recipient of State aid in preparing a restructuring plan, and advise on the implementation of potential behavioral and structural remedies.

We have the largest team of economists, econometricians, accountants, and industry experts in the industry. Our experts apply financial and industrial economics to produce sophisticated conceptual or empirical analyses, ensuring you receive the best support throughout any preliminary assessment, notification, or investigation.