Subsidies

There is no doubt that subsidies are today ubiquitous in society and play a crucial role in the Belgian economy. Moreover, the granting of subsidies is not limited to a single level of government: various public authorities award subsidies across virtually all economic sectors. This includes, for example, federal subsidies in areas such as research and innovation, as well as health and welfare. The Walloon, Brussels and Flemish authorities, as well as local authorities, also grant subsidies across a wide range of areas and sectors. Finally, the European level should not be overlooked as a source of such financial support.

When granting subsidies, the authority must rely on an appropriate legal basis and a sufficient legal framework. Such a framework is not always in place in advance, and even an existing framework can regularly give rise to legal questions. It is therefore not uncommon that further examination is required, in particular regarding the legal basis for the subsidy, the principles of good administration, and the powers of the authority concerning the subject of the subsidy. Moreover, it is of undeniable importance that subsidies are granted in compliance with European Union state aid regulations. Careless design of subsidy measures may lead to legal disputes, annulment of decisions, or the recovery of granted subsidies.

We have the expertise to assist subsidy-granting authorities in the preparation, drafting, and implementation of subsidy measures. In doing so, we translate the client’s policy and practical objectives into legally grounded and operational subsidy dossiers. Our support includes, in particular:

• analyzing and verifying the competences of the granting authority, as well as mapping the applicable legal and regulatory frameworks;
• drafting and legally anchoring subsidy decisions and calls for proposals, with particular attention to the choice of appropriate legal bases and instruments;
• determining, structuring, and formulating in a legally sound manner the required information, assessment criteria, award conditions, and implementation modalities, with a view to legal certainty and equal treatment;
• examining whether subsidy measures qualify as state aid and, where applicable, advising on a state-aid compliant design and implementation.

Moreover, a subsidy agreement is closely linked to public procurement regulations. This is illustrated by the judgment of the Court of Justice of 17 October 2024, in which the Court requalified a subsidy agreement, combined with a purchase commitment, concerning a football stadium in Bratislava, Slovakia, as a public contract. We therefore also advise on the correct application and distinction between these two regulatory frameworks, taking into account our particular expertise in public procurement.

We support authorities in the legal implementation of a subsidy process, from the conceptual and drafting phase through to the award of subsidies. In doing so, we draw on extensive expertise not only in subsidy granting itself, but also in state aid law and public procurement law.

Furthermore, we assist not only subsidy-granting authorities, but also subsidy beneficiaries (companies, non-profit organizations, research institutions, and other recipients). We support them in the legally sound preparation and submission of subsidy applications, compliance with conditions and reporting obligations, and in handling audits, inspections, or disputes regarding refusal, suspension, or recovery of granted subsidies.