Abstract
The regulatory framework of State aid is central to the review of the use of public resources in the European Union. Article 107 of the Treaty on the Functioning of the European Union (TFEU) defines State aid as any aid which may distort competition and affect trade between Member States, by favouring some undertakings or the production of certain goods. The Treaty provisions entrust the Commission with the prevention of aid granted by Member States which could unduly distort competition in the internal market. When applying the Treaty provisions, the Commission not only ensures that the Member States do not provide aid limiting competition and tilting a level playing field, but also defines growth-oriented approaches and shapes policy instruments within the context of subsidization.
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