When is aid not state aid? The implications of the English Partnerships decision for European competition law and policy

The reasoning of the European Commission in the English Partnerships case raises important issues regarding the concept of state aid within the meaning of Article 87 (I) EC, in particular whether the provision of 'gap funding', namely the minimum financial support necessary to enable a private sector developer to proceed with a development project and which is granted in order to rectify a market failure, constitutes state aid.