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European Union funding co-managed by Member State authorities is considered to be a state resource that may only be granted in conformity with the rules on state aid. Compliance with both state aid and Structural Funds’ rules appears to be problematic, hence this study identifies the relevant issues in the interface between these two sets of rules and makes proposals to facilitate compliance.

Under the Treaty on the Functioning of the European Union, a measure constitutes state aid if it grants a selective economic advantage to one or more enterprises through state resources, thus distorting or threatening to distort competition. However, not all forms of state aid are prohibited. Indeed, under certain conditions the European Commission may consider the state aid acceptable. This is notably the case when the support measures pursue a common objective or underpin the general interest. ...