A number of our clients – grant recipients are subject to reviews focused on determining compliance with the underlying grant conditions and are required to pay a ‘budgetary discipline breach’ levy when non-compliance is ascertained.
While the companies receiving grants from country-wide programmes have the possibility of seeking a waiver in respect of virtually all such payments (and the related penalties) and have a significant chance of being successful subject to adherence to applicable procedural steps, waivers under regional grants (typically regional operational programmes) are subject to individual assessments by the relevant providers and the success rate is variable. In addition, the successful waiver results in the applicant receiving a new state (public) aid which can be again illegal on the grounds of unawareness of both parties and the enigmatic knot is thus hard to untie.
Should you be unsure how to proceed when breaching grant conditions, do not hesitate to contact us.
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