Regulation & public law
Public funding can support investment but also create repayment and compliance risks. We advise on subsidy conditions, state-aid questions and disputes concerning grant awards or recovery.
Scope of our advice
The assessment considers the beneficiary, economic advantage, selectivity, public resources and effect on competition and trade. Exemptions and approval routes require a separate analysis. National grant conditions may impose obligations beyond EU state-aid rules.
What needs attention
Do not assume that an approved grant can be used for any purpose or retained after a change in ownership. Reporting, eligible-cost and retention conditions need operational controls.
Funding conditions, transaction effects and repayment
Public support can take the form of a grant, guarantee, loan, tax advantage or favourable commercial terms. We examine the recipient, funding measure and legal basis before assessing the available route. EU state-aid analysis and domestic grant conditions are distinct: an acceptable measure under one framework may still require compliance with detailed eligibility, reporting and retention obligations. The beneficiary needs a practical understanding of what it may spend, when it may start and what evidence it must retain.
How the legal work is organised
The review follows application, award, use of funds, audit and possible recovery. We identify conditions affecting procurement, jobs, location, asset retention and changes in ownership. In transactions, subsidy exposure should be incorporated into diligence and the purchase agreement, including cooperation with authorities and allocation of repayment risk. When an authority challenges expenditure or seeks recovery, the response should address the legal basis, facts, procedure and deadlines. A commercial negotiation does not remove the need to preserve any available formal remedy.
Four practical examples
Illustrative scenarios explaining typical legal issues; these are not statements about specific client mandates.
Investment grant
A manufacturer receives funding for new equipment. We examine eligible costs, procurement conditions and reporting obligations before expenditure.
Practical approach. Eligible-cost evidence should be organised as expenditure occurs, not reconstructed at the end of the project. The operational team needs a clear approval process for deviations from the funded plan.
Acquisition of beneficiary
A buyer acquires a subsidised company. We review change-of-control and repayment clauses during due diligence.
Practical approach. The transaction review should identify notification and consent obligations and any continuing retention period. The purchase agreement should allocate cooperation and repayment exposure where historic compliance cannot be fully verified.
Municipal support
A business receives preferential premises from a public body. We assess whether the terms raise state-aid concerns.
Practical approach. Market evidence and the terms offered to comparable operators may be relevant. A public body’s willingness to grant support does not itself establish that the arrangement is free from state-aid issues.
Recovery notice
An authority seeks repayment after an audit. We check the legal basis, factual findings, deadlines and available remedies.
Practical approach. Preserve the decision and service information and check the response route immediately. A factual explanation to the auditor may be useful but is not necessarily a substitute for the required legal remedy.
Preparing the first discussion
Collect the application, award decision, funding terms, expenditure evidence, reporting, audit findings and correspondence with the authority. Explain any change in the project, ownership or use of assets. For preferential public contracts or premises, provide valuation and market-comparison materials, because the economic terms may be central to the assessment of an advantage.
Related expertise
Competition & merger control · Public procurement & concessions · Permits & regulated businesses
Discuss your business matter
Tell us which parties and countries are involved, what you want to achieve and whether a deadline is approaching. We will clarify the scope, the appropriate legal team and the fee arrangements before work begins.
Reference: EU legislation and case law. English translations of German legislation may lag behind the authoritative German text. Application depends on the facts and the relevant current law.