Brexit and the Cross-Border Spillover of the EU’s State Aid Rules. College of Europe Policy Brief #11.18. June 2018

Nicolaides, Phedon (2018) Brexit and the Cross-Border Spillover of the EU’s State Aid Rules. College of Europe Policy Brief #11.18. June 2018. [Policy Paper]

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Abstract

> After its withdrawal from the European Union, the United Kingdom is likely to maintain a state aid regime that is similar to that of the EU. > This is because the EU will require the UK to prevent distortions to bilateral trade caused by state aid and to preserve frictionless movement of goods and services between Ireland and Northern Ireland. > It will also be in the interest of the UK to maintain rules on state aid so as to avoid countervailing duties imposed by the EU in the Word Trade Organization framework. > Moreover, as the devolved administrations within the EU acquire more autonomy in economic policy making, it is likely that the UK will find it necessary to rely on state aid rules to prevent distortions to competition within the UK. Since public authorities in the UK already comply with EU state aid rules, the retention of these rules will not be difficult.

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