<num>TITLE VII</num><heading>COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS</heading><chapter eId="part-THREE-title-VII-chapter-1"><num>CHAPTER 1</num><heading>RULES ON COMPETITION</heading><section eId="part-THREE-title-VII-chapter-1-section-2"><num>SECTION 2</num><heading>AIDS GRANTED BY STATES</heading><article eId="article-107" uk:target="true"><num>Article 107</num><heading>(ex Article 87 TEC)</heading><paragraph eId="article-107-1"><num>1.</num><content>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.</content></paragraph><paragraph eId="article-107-2"><num>2.</num><intro>The following shall be compatible with the internal market:</intro><level class="para1"><num>(a)</num><content>aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned;</content></level><level class="para1"><num>(b)</num><content>aid to make good the damage caused by natural disasters or exceptional occurrences;</content></level><level class="para1"><num>(c)</num><content>aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, in so far as such aid is required in order to compensate for the economic disadvantages caused by that division. Five years after the entry into force of the Treaty of Lisbon, the Council, acting on a proposal from the Commission, may adopt a decision repealing this point.</content></level></paragraph><paragraph eId="article-107-3"><num>3.</num><intro>The following may be considered to be compatible with the internal market:</intro><level class="para1"><num>(a)</num><content>aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment, and of the regions referred to in Article 349, in view of their structural, economic and social situation;</content></level><level class="para1"><num>(b)</num><content>aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State;</content></level><level class="para1"><num>(c)</num><content>aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest;</content></level><level class="para1"><num>(d)</num><content>aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Union to an extent that is contrary to the common interest;</content></level><level class="para1"><num>(e)</num><content>such other categories of aid as may be specified by decision of the Council on a proposal from the Commission.</content></level></paragraph></article></section></chapter>

http://www.legislation.gov.uk/eut/teec/article/107/walesConsolidated version of the Treaty on the Functioning of the European UnionConsolidated version of the Treaty on the Functioning of the European Union2020-12-24King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02016E/TXT-20200301texttext/xmlen2020-03-01PART THREEUNION POLICIES AND INTERNAL ACTIONS<num>TITLE VII</num><heading>COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS</heading><chapter eId="part-THREE-title-VII-chapter-1"><num>CHAPTER 1</num><heading>RULES ON COMPETITION</heading><section eId="part-THREE-title-VII-chapter-1-section-2"><num>SECTION 2</num><heading>AIDS GRANTED BY STATES</heading><article eId="article-107" uk:target="true"><num>Article 107</num><heading>(ex Article 87 TEC)</heading><paragraph eId="article-107-1"><num>1.</num><content>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.</content></paragraph><paragraph eId="article-107-2"><num>2.</num><intro>The following shall be compatible with the internal market:</intro><level class="para1"><num>(a)</num><content>aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned;</content></level><level class="para1"><num>(b)</num><content>aid to make good the damage caused by natural disasters or exceptional occurrences;</content></level><level class="para1"><num>(c)</num><content>aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, in so far as such aid is required in order to compensate for the economic disadvantages caused by that division. Five years after the entry into force of the Treaty of Lisbon, the Council, acting on a proposal from the Commission, may adopt a decision repealing this point.</content></level></paragraph><paragraph eId="article-107-3"><num>3.</num><intro>The following may be considered to be compatible with the internal market:</intro><level class="para1"><num>(a)</num><content>aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment, and of the regions referred to in Article 349, in view of their structural, economic and social situation;</content></level><level class="para1"><num>(b)</num><content>aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State;</content></level><level class="para1"><num>(c)</num><content>aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest;</content></level><level class="para1"><num>(d)</num><content>aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Union to an extent that is contrary to the common interest;</content></level><level class="para1"><num>(e)</num><content>such other categories of aid as may be specified by decision of the Council on a proposal from the Commission.</content></level></paragraph></article></section></chapter>