State Aid Remains A Hot Topic In Brexit Talks

How the UK will run its state-aid regime after the end of the Brexit transition period remains one of the hardest issues to settle in the continuing UK-EU negotiations.

With less than six months to go to the end of the transition, EU negotiators are growing increasingly impatient at Boris Johnson’s failure to set out his plans for a domestic subsidy regime and provide concrete reassurance that the UK does not intend to unfairly undercut EU economies.

Michel Barnier, the EU’s chief negotiator, signalled last week that the EU was prepared to shift some of its red lines, a change of tack noted by his British counterpart David Frost. With the latest round of intensified talks under way in Brussels this week, the question now is whether a compromise can be reached.


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