For subsidies in scope of the UK-EU Trade and Cooperation Agreement principles (within the subsidies chapter), public authorities should complete the table below and retain for their records. The information should record how the public authority has complied with the principles in designing their subsidy. The notes in the second column are suggestive and not exhaustive but aim to provide a general guide to complete the form.
|Principles||How does the subsidy comply with the principle?|
|The subsidy pursues a specific public policy objective to remedy an identified market failure or to address an equity rationale such as social difficulties or distributional concerns (“the objective”).||What is the public policy objective?What is the rationale for the intervention?
What are the desired outcomes of the intervention?
|The subsidy is proportionate and limited to what is necessary to achieve the objective.||How is the subsidy or scheme proportionate to achieve the policy objective?Demonstrated that the subsidy is limited to what is necessary to achieve the policy objective.
How is this specific level of intervention necessary?
Detail the impact of the subsidy on any areas outside the area of focus will be negligible.
|The subsidy is designed to bring about a change of economic behaviour of the beneficiary that is conducive to achieving the objective and that would not be achieved in the absence of the subsidy being provided.||What change of economic behaviour of the beneficiary does the subsidy bring about?Demonstrate how this behaviour would not be achieved in the absence of the subsidy?|
|The subsidy should not normally compensate for the costs the beneficiary would have funded in the absence of any subsidy.||What are the types of costs the subsidy is to be used to support?Summarise the evidence gathered to support the costs that will be provided.|
|The subsidy is an appropriate policy instrument to achieve a public policy objective and that objective cannot be achieved through other less distortive means.||Why is the subsidy an appropriate policy instrument to achieve the public policy objective compared with other available instruments – e.g., a grant or loan/ loan guarantee compared with, for example, a tax rebate or tax credit market loan or guarantee.Detail other interventions which have been considered, demonstrating and that the policy objective cannot be achieved through less distortive means.|
|The subsidies’ positive contributions to achieving the objective outweigh any negative effects, in particular the material effect on trade or investment between the Parties.||Demonstrate how the subsidy could have an effect on trade or investment between the UK and the EU, but the positive contribution of the subsidy outweighs any negative effect of impact on trade or investment with the EU.To evidence this, set out below the positive contributions of the subsidy and anticipated negative effects below, with comments as to why negative effects are outweighed.|
|Where relevant, record consideration against Article 3.5 [Prohibited subsidies and subsidies subject to conditions], including consideration of whether that subsidy has or could have a material effect on trade or investment between the Parties.||Have you checked whether the beneficiary in an ailing or insolvent business?Is the subsidiary an unlimited guarantee?
Is the beneficiary a bank, credit institutions or insurance company?