Web-Companion Essential EU Law in Text: Suggested solutions to the exercises
Please find hereinafter the suggested solutions to the 64 exercises contained in the book "Tobler/Beglinger, Essential EU Law in Text, 5th edition, HVG-ORAC 2020, ISBN 978-963-258-490-4". To give you an idea how the exercises in the book are phrased, they have been added for the first three instances. Any comments or feedback are welcome.
Showing only entries concerning chapter Part 2, C. VI. 7.. View all entries
Competition law – Exercise 7
Page: 93
Chapter: Part 2, C. VI. 7.
Suggested solution:
Participation in the capital of a company is a form of state aid (Art. 107 TFEU) if a private investor would not have made the same investment (market economy investor principle). It is not acceptable if it meets the other conditions stated in Art. 107(1) TFEU (effect on trade, distortion of competition) and if it cannot be justified (Art. 107(2) and (3) TFEU). In a case like the one at issue, one should check the Commission’s Guidelines on State aid for rescuing and restructuring firms in difficulty.
[Relevant Charts: Chapter 9, in particular Chart 9/39-9/44]
[V.1.1]