Project R-11989

Ex ante protection in subsidy award decision-making: towards a better coordinated legal framework influenced by European Union law? (Research)

Public authorities at different Belgian governance levels grant subsidies to (the same) businesses in an important number of policy domains. The procedures accompanying the granting of subsidies are not always coherent and transparent, leaving room for abusive behavior by subsidy recipients. Recent scandals to that extent in Flanders are a good illustration of those risks. In order to address abuses, the law traditionally relies on remedies (audits, criminal law sanctions or recovery of previously awarded advantages) that can only be used mostly when some harm has already been done. Questions therefore arise whether, on the basis of European Union law and more particularly EU State aid law, more preventive legal protection possibilities (such as extended hearing and transparency obligations) could or should be envisaged. Those possibilities would contribute to avoid subsidy abuses from materializing. This project will analyse whether and to what extent such preventive legal protection mechanisms can and/or should be organized at different Belgian governance levels. More particularly, it will investigate Belgian (federal, regional/community and provincial/local) subsidy procedures in the contexts of green energy and start-up subsidies allotted to businesses in the light of EU law principles of good administration. The findings of those studies will be used to make tailored suggestions for the improvement of the Belgian legal frameworks in place.

01 October 2021 - 30 September 2022