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The problem of state aids as a possible source of unfair competition in the EU

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  1. Functioning of the state subsidies
    1. Different kind of subsidies
    2. How it works
    3. Agricultural, Industrial and Social subsidies
  2. State subsidies creates unfair competition
    1. Against state aids
    2. Pro state aids
    3. Example of unfair competition

A subvention is a refundable grant granted mostly by the State or a Local authority. It is paid by a public community for activities in which it neither takes the initiative, nor the responsibility. It is granted either to facilitate the execution of a public utility, or as help or support, if it has a character of generosity. All the regularly declared associations may receive subsidies. It can involve: Subsidies in cash i.e. money transfers, Subsidies in kind i.e. loans of premises, grounds or material (equipment) for free, free services, put at the disposal of staff, agents of the community, etc. This free assistance provided by the authorities is mostly accompanied with obligations to beneficiary associations. We can distinguish between the subsidies of investments: the object of which is to help the company to acquire certain equipments, and the subsidies of functioning: these come into the picture to enable the completion of the company's turnover, when the activity pulls additional costs, or cannot be made profitable. This also happens when this activity is recognized by utility for the collectivity.

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