Recent economic challenges have forced many companies to rethink their plans – but these changes often impact not only business strategy, but also the use and eligibility of previously awarded investment subsidies. This year, we’ve seen numerous cases where clients’ plans had to be significantly altered due to shifts in the market environment, placing their state aid at risk.
Based on our experience, the following three factors are the most common reasons why companies begin to question whether they can actually access or retain the subsidy. The good news: with the right professional support, these situations can often be resolved – and the subsidy can usually be preserved.
1. Suspension or Major Modification of the Investment
Rapidly shifting business priorities and changing cost structures can push previously planned projects – such as real estate developments or major equipment purchases – into the background. In such cases, it's crucial to reconsider the subsidy agreement and reassess the project’s goals.
Key questions:
- What was the original investment objective?
- How have business priorities changed?
- Can the project content be modified within the framework of the subsidy conditions?
In many cases, a compromise solution can be found that allows the subsidy to be retained – such as partially fulfilling the original objectives, or incorporating new development elements aligned with current business needs.
2. Difficulty in Creating or Maintaining the Committed Number of Jobs
Falling order volumes, reduced shifts, or downsized production capacity often prevent companies from meeting their employment obligations under the subsidy contract. This is especially critical during the maintenance period, when the flexibility to modify commitments is significantly reduced.
The key: proactive replanning
- Is it possible to restructure the headcount commitments?
- Is renegotiation of the contractual obligations even an option?
Careful planning is essential here: companies must consider how to comply with legal and contractual requirements in the new business context, and how to restructure commitments in a way that doesn’t jeopardize lawful use of the subsidy.
3. Changes in Company Structure: Transformation, Relocation, Mergers
Companies naturally adapt to economic changes by consolidating sites, relocating operations, or altering ownership structures. However, these actions can significantly affect the validity of subsidy agreements and the fulfillment of commitments.
In such cases, it’s essential to have:
- Thorough and forward-looking planning
- A detailed understanding of the subsidy conditions
- Accurate and timely fulfillment of administrative obligations
Even a single missed notification or misinterpreted contractual clause can have serious consequences – in extreme cases, it may even require the company to repay previously disbursed state aid. However, our experience shows that professionally grounded solutions almost always exist – if changes are handled in a timely and expert manner.
The Key to Success: Strategic Flexibility and Professional Support
Economic uncertainty does not necessarily mean losing access to subsidies. Experience shows that well-timed replanning, precise knowledge of the regulatory framework, and strategic thinking allow companies to adapt to changing conditions – while retaining their awarded cash grants.
If your company is also facing changes, it is advisable to consult with experts early. A well-prepared alternative plan can help preserve your subsidy, while also contributing to the long-term stability and competitiveness of your business.
