Abstract
The Agreement on the Withdrawal of the UK from the EU provides that EU state aid rules will apply to the UK until the end of the transition period and to the trade of Northern Ireland at least until 31 December 2024 and from that date for as long as the agreed arrangements receive ‘democratic consent’. This article considers whether the Agreement may incentivize the UK to apply EU state aid rules in the rest of the UK. It concludes that the UK is likely to align itself to the EU’s regime.
Highlights
The United Kingdom withdrew from the European Union on 31 January 2020
Under certain conditions, the application of EU state aid rules to the trade of Northern Ireland after the end of the transition period may be brought to an end
During the transition period that ends on 31 December 2020, the current state aid regime will apply and the Commission and the Court of Justice will remain competent up to 31 December 2014 to deal with state aid that is granted before 31 December 2020
Summary
The United Kingdom withdrew from the European Union on 31 January 2020. The Agreement on the Withdrawal of the UK from the EU aims to:[1]. 1. Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, 31 January 2020, OJ L 29, p. Given the second and third objective of the Agreement, the purpose of this article is to ask for how long the UK will have to abide by the EU’s rules on state aid. This is a timely and pertinent question because, according to press reports, the UK government intends to diverge from the EU’s regulatory regime, despite objections by its industry.[3].
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