Abstract

The Withdrawal Agreement provides for the continued application of EU State aid rules in the UK after Brexit in three ways: the transition period; the ‘run-off' provisions dealing with State aid measures implemented before the end of the transition period and ongoing State aid procedures; and the Northern Ireland Protocol. Though this may appear surprising, it is less surprising given that the whole purpose of the Protocol is to protect the EU internal market while avoiding any need for checks and controls on the Irish border. Northern Ireland is closely integrated economically with Great Britain, and the Protocol itself refers to it having an ‘integral place in the United Kingdom's internal market'. Principle H states that ‘subsidies for the decarbonisation of emissions linked to industrial activities in the United Kingdom shall achieve an overall reduction in greenhouse gas emissions, and reduce the emissions directly resulting from the industrial activities'.

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