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Part III Rules for the Compatibility of State Aid, 2 De Jure Compatible Aid under Article 107(2) TFEU

Viktor Kreuschitz, Hanns Peter Nehl

From: State Aid Law of the European Union

Edited By: Herwig C. H. Hofmann, Claire Micheau

From: Oxford Competition Law (http://oxcat.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 15 January 2021

European Union — Aids compatible with common market

This chapter assesses the de jure compatible aid under Article 107(2) TFEU. As is well known, Article 107(1) TFEU introduces a general prohibition on granting State aid in the EU legal order. Nevertheless, this prohibition is not absolute because the same article permits derogations provided for in the TFEU. Article 107(2) provides for these de jure derogations, that is to say State aid which is compatible with the Treaty. According to this provision, three categories of State aid accord with the internal market, namely: (a) aid of a social character granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the product concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; and (c) aid granted to certain areas of Germany affected by the division of that country.

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