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Art. 107 TFEU was introduced in March 25, 1957 by the Treaty of Rome. This article was numbered Art. 87 in the previous version of the treaty. The provision has direct effect and can be utilised by individuals, undertakings and member states. 

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titlePublication Note

Responsible: The Free University of Berlin, represented by the President.
Authors: Amit Upadhyay, Ziya Baghirzade, Solmaz Babayeva, Ditto K Thomas

Stage of work: Completed


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1. Save as otherwise provided in the Treaties, any aid granted by a Member State or through State
resources in any form whatsoever which distorts or threatens to distort competition by favouring
certain undertakings or the production of certain goods shall, in so far as it affects trade between
Member States, be incompatible with the internal market.

2. The following shall be compatible with the internal market:
(a) aid having a social character, granted to individual consumers, provided that such aid is granted
without discrimination related to the origin of the products concerned;
(b) aid to make good the damage caused by natural disasters or exceptional occurrences;
(c) aid granted to the economy of certain areas of the Federal Republic of Germany affected by the
division of Germany, in so far as such aid is required in order to compensate for the economic
disadvantages caused by that division. Five years after the entry into force of the Treaty of Lisbon,
the Council, acting on a proposal from the Commission, may adopt a decision repealing this
point.

3. The following may be considered to be compatible with the internal market:
(a) aid to promote the economic development of areas where the standard of living is abnormally low
or where there is serious underemployment, and of the regions referred to in Article 349, in view
of their structural, economic and social situation;
(b) aid to promote the execution of an important project of common European interest or to remedy
a serious disturbance in the economy of a Member State;
(c) aid to facilitate the development of certain economic activities or of certain economic areas, where
such aid does not adversely affect trading conditions to an extent contrary to the common interest;
(d) aid to promote culture and heritage conservation where such aid does not affect trading
conditions and competition in the Union to an extent that is contrary to the common interest;
(e) such other categories of aid as may be specified by decision of the Council on a proposal from the
Commission.

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Consolidated version of the treaty on the functioning of the European Union
Abrufdatum 10.10.2011.
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titleQuelle und Stand des Gesetzes