Thread by @AlexanderPHRose

@Peston @BorisJohnson State aid will be solved in the EU-UK trade talks.

There are multiple reasons for this, which include:

> State aid rules align with the UK (and in particular Tory) mindset that subsidies should be a last resort;

> Frost has agreed sensible general principles on subsidies;

@Peston @BorisJohnson > having the EU bound to certain standards / principles is in the UK’s interest as it ensures their system doesn’t become more permissive;

> which is in our interest as the UK doesn’t award as much State aid and confident that our businesses can win work on merit alone.

@Peston @BorisJohnson > the rules don’t really constrain the UK, after all Germany spends 4 times as much under the same rules...

> Tech start ups can be funded under the EU rules. That the UK hasn’t is about budget not rules.

@Peston @BorisJohnson The UK wants to be a champion of rules based trade around the World.

To achieve this @BorisJohnson should create ‘Rolls Royce’ UK State aid rules.

The issue isn’t really about the EU, but whether the UK wants strong or weak rules to coordinate and control subsidies.

@Peston @BorisJohnson Here’s an article I wrote with @Jon_Branton on the subject.

I think it’s as relevant today as it was then...

uksala.org/the-future-of-…