THE NOTION OF “STATE AID” IN EU LAW

The term “aid” has not been defined within the Treaty on the Functioning of the European Union (TFEU). Instead, the prohibition of aid is governed under Article 107 TFEU, stipulating that Member States may not grant any aid without prior notification to the European Commission. However, if a state measure qualifies as 'aid' within the meaning of Article 107 TFEU, a distinction must be made between existing aid and new aid. Depending on the type of aid, different procedural regulations of the TFEU must be adhered to. The prohibition of aid under Article 107 TFEU does not imply that no aids may be granted at all.