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ARTICLE · 12 SEPTEMBER 2018

UK Plans To Maintain State Aid Regime Post-Brexit

Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
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Skadden, Arps, Slate, Meagher & Flom LLP

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On August 20, 2018, the U.K. government published further details of its negotiation position with the European Union on state aid post-Brexit.

United KingdomGovernment, Public Sector

On August 20, 2018, the U.K. government published further details of its negotiation position with the European Union on state aid post-Brexit.1 Three days later, it published guidance on state aid in case the U.K. leaves the EU without an agreement in March 2019.2 The guidance insists that negotiations are progressing well, and both sides continue to work hard to reach a deal. But the U.K. also plans to be ready from day one for a "no deal" scenario.

State aid rules are a crucial part of the EU's internal market. Their purpose is to prevent member state governments from granting unrestricted subsidies and other types of support to businesses in ways that would harm the development of the EU internal market.

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