STATE AID Meaning and
Definition
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State aid refers to any form of financial assistance or economic support provided by a government to businesses, industries, or individuals within its jurisdiction. It is usually provided with the objective of fostering economic growth, supporting specific sectors, promoting regional development, or remedying market failures.
State aid can be granted in various forms, including direct subsidies, grants, tax incentives, guarantees, preferential loans, or relief from certain regulatory obligations. Governments may provide such aid to help businesses overcome financial difficulties, encourage investment, boost employment, develop infrastructure, or stimulate research and development activities.
While state aid can play a crucial role in promoting economic development and competitiveness, it can also distort competition within the internal market of a country or the European Union (EU). For this reason, in the context of the EU, state aid is regulated and subject to strict criteria and notifications to ensure fair competition and prevent undue advantage to certain entities or regions.
The European Commission is responsible for assessing and approving state aid measures in the EU. The commission evaluates whether the aid complies with EU rules, including those on market distortions, discrimination, selectivity, and proportionality. If a state aid measure is found to be incompatible with EU regulations, the Commission may require the recipient to repay the aid or take corrective measures to restore fair competition.
Common Misspellings for STATE AID
- state ad
- atate aid
- ztate aid
- xtate aid
- dtate aid
- etate aid
- wtate aid
- srate aid
- sfate aid
- sgate aid
- syate aid
- s6ate aid
- s5ate aid
- stzte aid
- stste aid
- stwte aid
- stqte aid
- stare aid
- stafe aid
- stage aid
Etymology of STATE AID
The word "state aid" has a straightforward etymology.
The term "state" originated from the Latin word "status", which means condition or position. It evolved through Old French and Middle English to refer to a political community or a governing body.
The word "aid" comes from the Old French "aide", meaning help or support, which can be traced back to the Latin word "adiutare", meaning to assist or to give support.
When combined, "state aid" refers to financial or other types of assistance provided or granted by a government or state to individuals, organizations, or businesses for various purposes. The term is commonly used in the context of government subsidies, grants, or loans to support economic development, social welfare, or other public interests.
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