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 108 (ex Article 88 TEC)

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Article 108 TFEU establishes a framework for the Commission's ongoing supervision of Member State aid systems, requiring constant review in cooperation with Member States and mandating prior notification of any plans to grant or alter aid. Where aid is found incompatible with the internal market under Article 107 TFEU or is being misused, the Commission may order its abolition or modification, with non-compliance enabling direct referral to the Court of Justice; the Council may, acting unanimously and in exceptional circumstances, override the Commission's assessment upon a Member State's application. The Commission is further empowered to adopt regulations exempting certain categories of State aid from the prior notification procedure where the Council has so determined pursuant to Article 109 TFEU.AI