How Technology Can Transform the Work of State Aid Practitioners

State aid, within the EU context, refers to financial assistance provided by EU member countries using public resources. This assistance can take various forms, such as grants, loans, guarantees, or direct investments in companies. It becomes “state aid” when it tilts the competitive balance, favouring specific businesses or industries and affecting trade between EU countries.

State aid must adhere to strict guidelines outlined in the Treaty on the Functioning of the European Union, numerous regulations and guidelines from the European Commission, as well as national legislation of member states implementing EU-level state aid rules. Whether it involves offering goods or services at lower prices, granting access to public resources, or implementing rules that impact state revenue, all these actions fall under the state aid umbrella.

The world of state aid is constantly evolving. First, by regularly adopting case decisions, the European Commission and the European Court of Justice issue new interpretations and practices to how state aid is governed.

Second, the Commission conducts routine fitness checks to assess the continued relevance and effectiveness of these rules. These assessments are particularly important given the emergence of new political objectives like the European Green Deal. They ensure that state aid remains aligned with the evolving priorities of the Union and its member states.

Lastly, the introduction of Temporary Frameworks in response to the COVID-19 pandemic and the war in Ukraine has relaxed the typically stringent state aid rules. This presents its own set of challenges, necessitating adaptability to a continually shifting landscape.

Staying abreast of the ever-changing state aid environment is becoming increasingly complex for state aid professionals. Offering robust state aid compliance and advisory services, as well as handling litigation and dispute resolution, has never been more challenging.

In the complex realm of EU state aid regulations, compliance is key. Legal professionals specialising in state aid compliance provide essential guidance and advice. This includes helping clients determine whether a proposed action qualifies as state aid, advising on notification requirements, and identifying potential pitfalls or risks. Legal experts conduct thorough examinations to identify areas where clients may be falling short of state aid rules and regulations. Once these areas of non-compliance are pinpointed, recommendations are provided on how to rectify the issues, ensuring that clients stay on the right side of the law.

Legal technology solutions are emerging as invaluable tools to support state aid practitioners. These technologies enhance both the efficiency and effectiveness of state aid practices, particularly in navigating the ever-changing landscape of state aid regulations.

Legal tech excels at handling large datasets related to state aid, which include financial data and competition metrics. By employing advanced data analysis techniques, these solutions can quickly identify trends, patterns, and anomalies that may signal compliance issues. This not only speeds up problem identification but also facilitates more informed decision-making. Additionally, legal tech can streamline state aid notification procedures, making the process both efficient and less error-prone.

Legal technology solutions can be equipped with algorithms designed to automatically review proposed state aid measures. These algorithms could assess compliance with both EU and national regulations. The benefits are twofold: they would save legal professionals valuable time and significantly improve the accuracy of compliance assessments. With technology handling initial evaluations, legal assessments can concentrate on the more nuanced and complex aspects of state aid work.

Legal professionals also play a vital role in helping clients secure state funding when implementing their anticipated investment projects. Legal tech can revolutionise services in three key funding areas: state aid strategy, state aid application development, and state aid reporting.

First, legal professionals specialising in state aid advisory services assist clients in developing tailored strategies to tap into subsidy opportunities from national and EU funds. Legal technology, specifically powered by artificial intelligence, could enhance this service by providing AI-enabled assistance. It could offer personalised guidance to clients, taking into account their unique needs and goals. This technology-driven approach would ensure that state aid strategies are well-informed, precise, and aligned with clients’ objectives.

Once a robust strategy is in place, the next critical step is preparing applications for state aid incentives. State aid professionals guide clients through this intricate process, ensuring all eligibility criteria are met. Legal technology solutions can further enhance efficiency by automating various aspects of the application process. This includes reviewing eligibility criteria and pre-filling application forms, thereby making the application process both efficient and error-free.

Lastly, state aid advisory services also extend to supporting clients during project implementation and post-implementation phases. Compliance monitoring is a key aspect of this support. Legal technology solutions would definitely excel in this area by automating compliance checks, tracking essential metrics, and alerting compliance teams to potential issues. Additionally, solutions could enable the tracking of critical dates and deadlines, ensuring that nothing falls through the cracks. This organised approach would simplify the compliance process and reduce the risk of oversight.

The integration of legal technology solutions will undoubtedly transform the way state aid services are delivered. It will empower legal professionals to deliver more efficient, accurate, and personalised assistance to clients seeking to navigate the complexities of state aid regulations. As state aid opportunities and compliance requirements evolve, legal tech will become a crucial tool in ensuring clients maximise their benefits while staying on the right side of the law.