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This area contains the Treaty rules that are relevant for the State Aid Control.
Art. 109 of the EC Treaty is the legal base for the adoption of secondary legislation in the field of State Aid.
Art. 108 of the EC Treaty was, since the adoption of Regulation 994 of the 7th of May 1998 on the application to artt. 107 and 108 of the Treaty to certain Orizontal Aids, the only normative source of procedural law in the field of State aid (commission decision lack the general scope as are addressed to specific beneficiaries).
The ten years that followed the adoption of said regulation of the Council there has been a significant increase in the adoption of regulations by the commission, both procedural and substantial (de minimis, block exemption regulations, etc).
As the empowering source of the Commission Regulations was only indirect (Reg. 994/98/EC) the Lisbon Treaty adds the all new par. 4 giving ex post the higher legal base to the legislation adopted by the Commission in the field of State aid.
Art. 108
Art. 107 of the Treaty on the Functioning of the European Union is made of three paragraphs. The 1st lays down the definition of "incompatible" State Aid. The 2nd provides for cases of de iure derogations to the incompatibility. The 3d provides for cases of discretionary derogation to the incompatibility.
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