Application of EU law
State aid
The Treaty on the Functioning of the European Union (TFEU) defines state aid as an advantage in any form whatsoever conferred on a selective basis to undertakings by national public authorities. Therefore, subsidies granted to individuals or general measures open to all enterprises do not constitute state aid.
A company which receives state aid obtains an advantage over its competitors. Therefore, article 107 of the TFEU generally prohibits state aid.
However, in some circumstances, government intervention is necessary for a well-functioning and equitable economy. Consequently, the Treaty leaves room for a number of policy objectives for which state aid can be considered compatible.