Granting of State aid to undertakings is not permitted under the EU Law and is exceptionally allowed, only when State aid is compatible with the Common Market(principle of incompatibility).
The European Commission is exclusively competent to decide about the compatibility of State aid. The national authorities that grant State aid, should notify their aid schemes to the European Commission, before applying them.
Overall, the EU State aid system relying on the principle of incompatibility and its exceptions presents a lot of interpretative and practical issues, especially due to the regularly reviewed State aid rules and to the multiple decisions and judgements adopted respectively by the European Commission and the European Courts. Thus, MoKE assists the competent national authorities for the proper application of State aid rules.