Investment incentives and other governmental support complement financing of private investment for the realization of an investment project. They may however be granted only within the narrow framework of the EU state aid rules. In order to avoid risks, a clear strategy and substantiated economic evidence is required. PwC understands those challenges and guides you safely through your state aid procedures.
Investing in an EU Member State and receiving government aid in order to realize the project generally leads to being a subject to state aid control by the European Commission.
When receiving government aid the first thing to clarify is whether or not the state aid needs to be notified to the European Commission. The notification of and negotiations about the state aid is the responsibility of the Member State. However in practice the company, in their own interest, has to support the Member State in argumentation. In assessing whether state aid should be granted, the European Commission relies increasingly on economic explanations and models as well as market analysis.
If you need to justify planned or received State aid, we work with you in order to develop a strategy and line of arguments towards the aid granting authority (donor) and the European Commission. Following the strategy, we put together the necessary documents and develop substantial argumentation papers and statements.
At first we check if the concrete support measure constitutes a State aid that is subject to review by the European Commission. Using the market economy test we asses, whether the support was granted under normal market economy conditions. If the test is positive, the state aid does not have to be notified to the European Commission. If it is negative we will clarify whether the aid can be granted without notifying it to the Commission. Otherwise, we check if one of the exceptions for granting State aid applies.
Furthermore we can assess the economic advantages and disadvantages of governmental support and demonstrate that the aid is necessary and be authorized to recoup investments. If a notification cannot be avoided, we will prepare the application process and assist you in the clarification of questions with the European Commission before the notification (so-called pre-notification).
To speed up this process, we develop a strategy for the application (including the required economic analysis, market studies, competition and financial analysis) and implement it. Besides we prepare the notification discussions with the European Commission and assist you in the argumentation.
Due to close contacts of PwC experts to decision makers to the public authorities and the European Commission, and many years of experience with various, sometimes very complex, cases of state aid we provide the best conditions for a time- and cost-saving aid procedure. Through an extensive preparation and professional guidance during the procedure, your chances of a smooth approval of the aid significantly increase.
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