UK airline rescue looms over EU trade talks

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UK airline rescue looms over EU trade talks
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Britain's decision to bail out a regional airline threatens to cast an immediate shadow over U.K.-EU trade talks that are likely to begin in early March

Britain's decision to bail out a regional airline threatens to cast an immediate shadow over U.K.-EU trade talks that are likely to begin in early March.

The rescue of Flybe raises immediate concerns about whether Britain is transgressing EU standards on illegal subsidies. The EU is watching this question very closely because British Prime Minister Boris Johnson has made no secret of his opposition to EU state aid laws. In particular, he has stressed that he wants Britain to have greater leeway to be able to bail out its ailing steel industry with public money.

European Commission President Ursula von der Leyen has already warned that deviation from EU rules will play badly in Brussels."The more divergence there is, the more distant the partnership has to be," she said last week. Condor received emergency funds last year when its parent company, Thomas Cook, failed | Ina Fassbender/AFP via Getty Images

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