state aid

This makes me think of one useful thing, which could change with Brexit. I always found state aid a lottery and self defeating aspect of the attempt through EU funding to on the one hand discriminate in favour of eligible areas and on the other only allow the money to be deployed in a way which avoided unfair competition. A self defeating tautology and a clear explanation for the increasing growth of tension between a central bureaucracy and sovereign Governments. This story tells us:

The European authorities accused Ireland of helping Apple to avoid tax by means of a sweetheart deal that is in breach of EU rules. Commissioner Margrethe Vestager, who oversees competition policy, said this allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003, falling to just 0.005 per cent in 2014.

How will the money be repaid?

That’s up to Ireland. It is in charge of recovering the money the EU says is due as a result of the deal breaking rules banning state aid to industry. It looks a bit like asking convicts to guard their own prison, but that’s the way these things are structured.

So Ireland will get a big bung?

Not just yet. Apple and Ireland have hotly denied the charges, and there will be appeal. This isn’t over, not by a long shot.

How does this compare to other rulings?

The EC has become much more aggressive in its approach to the agreements struck between multi national companies and EU member states. Previously it ordered the Dutch authorities to recover €30m (£26m) from Starbucks with a similar amount due to Luxembourg from Fiat Chrysler.