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The Difficulty of Being ‘Local’:

An Essay on an Unknown Friend

DOI https://doi.org/10.21552/estal/2018/2/8

Hans Arno Petzold


EU State aid law does frequently refer to the term ‘local’: firstly in Article 107(1) of the Treaty on the Functioning of the European Union (TFEU) when asking whether trade between Member States is affected, in the sense of a cross-border effect of the respective measure, secondly in the General Block Exemption Regulation (GBER) as from 1 July 2014, which exempts certain ‘local’ aids, falling under Article 107(1) TFEU, from prior notification. In this essay the attempt is made, by analysing Commission decisions and the GBER, to come to a definition of the term ‘local’ suitable for use in day-to-day funding practice.
Keywords: Effects on Trade; Local Character; Article 107(1) TFEU; GBER.

Dr iur Hans Arno Petzold, Deputy Head of Unit, Ministry of Economic Affairs et al, Schleswig-Holstein, Germany. All views presented are strictly the authors’ and not binding the institution. This article is a concentrated and updated follow-up to V Fiebelkorn and H A Petzold, ‘Zum Begriff des ‚Lokalen‘ im EU-Beihilfenrecht – Ist ein beihilferechtlicher Kompass in Sicht?’ (2017) BRZ 3.

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