"We will back British businesses by introducing a new state aid regime which makes it faster & easier for Govt to intervene" say Conservatives post-Brexit.
V. interesting - interventionist, poss consequences for UK-EU trade deal
V. interesting - interventionist, poss consequences for UK-EU trade deal
PM's new deal/PD commits to: "uphold common high standards applicable in Union and UK at end of transition period in area of state aid" and maintain a robust/comprehensive framework for competition & state aid control that prevents undue distortion of trade and competition"
The PM's renegotiation, ie dumping of backstop and replacement with NI frontstop, definitely weakened the state aid commitments in original Brexit deal - eg no longer application of EU law on state aid by independent authority, Joint Committee, and EC in UK courts...
so PM can offer more to the Labour leave voters this is targeted at, as a result of his changes to the deal,
However, if he wants the tariff/quota free trade deal with EU, within a year, that he is also promising, the room for manoeuvre here is rather limited...
However, if he wants the tariff/quota free trade deal with EU, within a year, that he is also promising, the room for manoeuvre here is rather limited...
Indeed industry figure who has met all sides & understands this stuff tells me "it wouldn't last one meeting with Barnier. Pure electioneering. Otherwise will be tariffs on GB goods entering single market".
so depends on exactly what are the extra state aid powers. But in election terms, PM can say he wants to do more to change state aid than Corbyn, who if he wants a deal in 3 months, there wont be an intricate state aid negotiation, so with that or Remain, state aid remains same.
But fits with pattern of parties on the right, meeting a post financial crisis desire for more strategic state, long argued for by the left.
Or in Brexit terms, clear attempt to glue together again the coalition of trade liberals, with bigger state Lexity argument that won EUref
Or in Brexit terms, clear attempt to glue together again the coalition of trade liberals, with bigger state Lexity argument that won EUref
This was the legal advice on the May deal on state aid - full dynamic alignment with EU law. PM doesn't have to do this now under new deal, but more it departs from below, the more it risks eg trade tariffs. 
That said: No direct reference to state aid in Conservative manifesto, and given many free market Conservatives who don't like state intervention - that matters...
That said, if Johnson gets majority from former Labour areas, with promises like this - changes Tory economic DNA
That said, if Johnson gets majority from former Labour areas, with promises like this - changes Tory economic DNA
