Thread by @profalanriley1

1. Great article on state aid and subsidies after the transition period by @GeorgePeretzQC , In Competition Law Insight. See competitionlawinsight.com/incoming/state…

2. In @GeorgePeretzQC incisive article, he makes the often overlooked point in the UK debate that without a serious & enforceable UK state aid regime, the UK will be able to free-ride on the EU state aid regime...one cannot really expect the EU-27 to accept such a result

3. He also hones in on another overlooked point in the UK debate (at least political debate, the lawyers have noticed) that the effect of Arts 10 &12 of the Protocol where any UK measures that have an effect on trade between NI and the EU is still subject to EU State Aid regime

4. As he indicates it is not wholly clear that HMG understood what it had signed up to. Despite leaving the EU and even the SM, the UK will still be bound by EU state aid law. Any UK measure not just measures of the NI administration will be affected.

5. Given the threshold for effect on trade in state aid cases is very low, bringing in much of Great Britain aid measures within the jurisdiction of the Protocol. @GeorgePeretzQC , gives an example as the UK wide support measures granted as a result of Covid-19

6. This leaves us with the prospect of post-transition of the European Commission still clearing UK wide aid measures on the basis of the Protocol, which are subject to the ultimate scrutiny of the CJEU & UK courts relying on EU state aid law to issue injunctions & award damages

7. HMG's current response can be found in Cl 45 of the Internal Market Bill which gives Ministers the power to remove the direct effect of Article 10 of the Protocol, despite the fact that this clause conflicts with Article 4 of the WA which grants Art 10 direct effect

8. @GeorgePeretzQC argues that while recognising that Art 10 is intrusive in a context where the UK has left the EU & the SM, the better approach than seeking to undermine Art 10 via the Internal Market Bill is to seek to re-negotiate the scope of Art 10.

9. Such a negotiation could work in the context of the UK being willing to establish its own robust state aid regime. However, if HMG cannot get the IM bill through the Lords and will not agree a subsidy regime, then the EU state aid regime will continue to apply post-transition.