The selected problems of the concept of State aid regulation

TFEU attempts to achieve a balance Member States and the European Union by laying down a broad prohibition on the granting of State aid which distorts of threatens to distort competition by favouring certain undertakings of the production of certain goods' insofar as it affects trade between Member States (Article 107 (1) TFEU). Even TFEU provides the general prohibition of State aid, there are some exceptions to the general prohibition that are either automatically compatible with the internal market (Article 107 (2) TFEU) or enables the European commission to consider the compatibility of certain aid with the internal market on the bases of a number of objectives to be attained (Article 107 (3) TFEU). The application of these exceptions is only within the power of European Commission. State aid measures can be effective tools for achieving objectives of common interest. State aid should only be used when it is an appropriate instrument for meeting a well defined objective, when it creates the right incentives, is proportionate and when it distorts competition to the least possible extent