Jump to ContentJump to Main Navigation
Competition Policy in the EUFifty Years on from the Treaty of Rome$
Users without a subscription are not able to see the full content.

Xavier Vives

Print publication date: 2009

Print ISBN-13: 9780199566358

Published to Oxford Scholarship Online: September 2009

DOI: 10.1093/acprof:oso/9780199566358.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 20 August 2019

State Aids: Economic Analysis and Practice in the European Union

State Aids: Economic Analysis and Practice in the European Union

Chapter:
(p.176) 7 State Aids: Economic Analysis and Practice in the European Union
Source:
Competition Policy in the EU
Author(s):

David Spector

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199566358.003.0007

Economic theory provides many different rationales for a supranational state aid control. It can be justified by paternalistic motives — helping national governments overcome their inability to resist special interests or make long-term commitments as well as by non-paternalistic ones — internalizing various types of cross-country externalities. This multiplicity of economic approaches leads to several possible policy prescriptions. Depending on which theory of harm is relevant, the meaning of ‘distortion of competition’ and ‘affectation of trade between member states’ may be as fluctuating as the case law. According to recent court rulings, an aid measure neither distorting competition nor distorting trade should be deemed legal irrespective of its economic soundness. But the Commission seems to be promoting a different view, making the economic efficiency of an aid scheme a decisive assessment criterion. How this discrepancy will be resolved is not yet clear.

Keywords:   state aid, externalities, distortion of competition, theory of harm, case law

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .