State Aid

As applicants for state aid, companies must negotiate with national subsidy providers on the various forms of support. Gleiss Lutz provides in-depth advice and support for maximising the level of state assistance received by our client, drawing from the various support programmes available to put together a package that makes the most of funding levels. Not only do we negotiate grant awards and grant agreements with national subsidy providers, but we also handle and coordinate the relevant application and approval procedures before the European Commission. 

Our team represents clients facing recovery claims in administrative and court proceedings. In view of the usually drawn-out nature of these proceedings, we work toward achieving, if possible, an amicable settlement. We also help develop strategies even before a potential recovery claim is asserted to secure the state assistance that has been granted. 

We work closely with specialists from our M&A practice to advise on subsidy-related issues in corporate transactions. Where the target company has, for example, received state assistance, there is a risk that the client may “buy into” problems relating to that assistance (such as recovery claims and obligations to comply with the conditions of the state aid). As part of the due diligence process, we check whether there are existing or potential issues relating to state aid and develop solutions to absorb related risks, either in the form of contracts or by negotiating with the funding agencies.
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Companies often feel disadvantaged by competitors receiving state subsidies. We advise and represent clients in competitor lawsuits before national courts and in complaints before national authorities and the European Commission.

Beneficiaries of aid are ever more frequently targeted by the European Commission. We represent clients in proceedings brought by the European Commission and by the Community courts in Luxembourg.

The impact of international anti-subsidy law on global business is steadily increasing. We advise and represent clients in proceedings before the European Commission, for example if they have been damaged by subsidised imports from non-EU countries. We also keep clients abreast of the latest WTO/GATT developments.

Not only privatisations (PPP) but also other government contracts for supplies or services involve the risk of accusations of concealed, unlawful state assistance. Together with our PPP specialists, and drawing on the expertise of our procurement lawyers, we help to eliminate any risks or exposure relating to state assistance.

Companies in financial difficulties often find themselves confronted with subsidy-related issues. We help them analyse the potential risks of having to repay subsidies and advise them on how these risks can be avoided. We also advise on public funding options, namely on the relevant legal framework, on the rescue and restructuring assistance available, and on the relief that can be sought from stimulus packages. Distressed companies also benefit from our full-service approach. Our experts in state assistance work closely with both our capital markets practice and lawyers from our restructuring group to provide one-stop advice to affected companies.
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