Abstract

The article refers to the issue of evaluation of ownership changes with respect to entrepreneurs using EU financing and assets of such undertakings from the viewpoint of EU regulations aimed at maintaining project sustainability. The EU law specifically regulates the issues of maintaining project results by formulating the so-called principle of sustainability which prohibits modification of projects with EU co-financing also after their completion.

The article discusses the interpretation of individual premises for a substantial modification of a project as well as the recommended method for the legal and structural analysis of the transactions involving EU financed assets/entities.

The presented issues are discussed in the light of the current case law with respect to successful and unsuccessful transactions/transformations involving entities receiving EU financing. The article also considers acts of diligence of buyers and sellers of such entities aimed at preventing the potential risk of recovery of financing.