State Aid and Brexit Reality Slowly Dawns

• Published in: European state aid law quarterly Vol. 17; no. 1; pp. 80 - 84
• Main Author: Peretz, George
• Format: Journal Article
• Language: English
• Published: Berlin Lexxion Verlagsgesellschaft mbH 01.01.2018; Lexxion Verlag
• Subjects: Brexit; Competition; EU membership; OPINION; Parliaments; Politics; Postal & delivery services; Privatization; State aid; United Kingdom > UK
• ISSN: 1619-5272; 2190-8184
• DOI: 10.21552/estal/2018/1/9

[...]in a speech2 delivered in February, Jeremy Corbyn (the leader of the Labour Party, who nominally – though not entirely enthusiastically or convincingly – campaigned to remain in the EU) cited State aid control as a reason for not wanting to stay, at least in any straightforward way, in the single market after Brexit: - So we would also seek to negotiate protections, clarifications or exemptions where necessary in relation to privatisation and public service competition directives state aid and procurement rules and the posted workers directive. [...]she noted that the UK had “always been in the vanguard of supporting open markets”, and pointed to the Prime Minister’s Florence speech, during which she said: “Trying to beat other countries’ industries by unfairly subsidising one’s own is a serious mistake”. [...]the Minister] emphasised that the Government wanted to ensure there would be no distortions of competition within the UK, so that “wealthier areas are not simply able to outspend other areas without regard to the interests of the UK as a whole”. [...]there are serious constitutional problems in setting up a robust State aid framework within the UK’s constitutional arrangements. [...]to give such an authority the right to control State aid granted in the form of primary legislation would be constitutional anathema. [...]the devolution settlement raises further profound issues.