Edition 2020 Ninth edition

2.1.4. 
Valuation of Property for State Aid Rules
2.1.4.1. 
General — With the promotion of the internal market, the EU has sought to 
regulate the extent to which governments and public bodies can use sub-
sidies, both express and implied, as a protectionist tool, distorting the free 
operation of that market. The State aid rules have been a major part of this 
policy, providing a legal framework in which actions in Member States can 
be regulated, approved or forbidden. These rules have also been used to 
regulate the valuation of property, the methods for disposing of property 
and the management of State owned property.

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European Valuation Standards 2020
VII. European Union Legislation and Property Valuation
339
2.1.4.2. 
The notion of State aid is defined in Article 107(1) TFEU that provides 
the following:
"Save as otherwise provided in the Treaties, any aid granted by a Member 
State or through State resources in any form whatsoever which distorts 
or threatens to distort competition by favouring certain undertakings or 
the production of certain goods shall, in so far as it affects trade between 
Member States, be incompatible with the internal market."
2.1.4.3. 
Accordingly, for a national measure to be considered as State aid, this 
measure must (i) give the recipient an economic advantage, (ii) be financed 
by the State or through State resources, (iii) selectively favour certain un-
dertakings or the production of certain goods and (iv) distort competition 
and affect trade between Member States.
2.1.4.4. 
In 2016 the European Commission issued the Notice on the notion of State 
aid that gives general guidance on all aspects of the definition of State 
aid. In particular, the Notice explains when public spending falls within, 
and outside, the scope of EU State aid control. It also replaces previous 
Commission Communications and Notices, such as the Communication 
on State aid elements in sales of land and buildings by public authorities.