The Member States 25 March 1957, Consolidated version of the Treaty on the Functioning of the European Union#PART THREE - UNION POLICIES AND INTERNAL ACTIONS#TITLE VII - COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS#CHAPTER 1 - RULES ON COMPETITION#SECTION 2 - AIDS GRANTED BY STATES#Article 107 (ex Article 87 TEC)

Also known as

Article 107 TFEU (ex Article 87 TEC) establishes the general incompatibility with the internal market of State aid that distorts or threatens to distort competition by favouring certain undertakings or goods, insofar as it affects inter-Member State trade. Paragraph 2 sets out categories of aid that are automatically compatible with the internal market, including aid of a social character to individual consumers, aid for natural disasters or exceptional occurrences, and aid to certain areas of Germany affected by its former division, the last of which may be repealed by Council decision five years after the entry into force of the Treaty of Lisbon. Paragraph 3 enumerates categories of aid that may be considered compatible with the internal market at the discretion of the relevant institutions, including aid for regional development, important projects of common European interest, sectoral or regional economic development, culture and heritage conservation, and such other categories as the Council may specify on a proposal from the Commission.AI