Regional State Aid Control in Europe: A Legal and Economic Assessment

62 Pages Posted: 2 Dec 2015

See all articles by Hans Wolfgang Friederiszick

Hans Wolfgang Friederiszick

E.CA Economics; ESMT European School of Management and Technology

Massimo Merola

College of Europe, Bruges

Date Written: December 1, 2015

Abstract

This paper provides a legal and economic analysis of the European rules for regional state aid according to Article 107 (1) and (3) TFEU. It summarizes the historical evolution and the trends of regional aid rules and describes the economic rationale behind them. The main principles are discussed with reference to recent academic research, leading cases and the State Aid Modernization initiative (“SAM”). The current rules for the assessment of compatibility as laid down in the general block exemption and the regional aid guidelines 2014 are critically reviewed in light of these principles.

Keywords: regional development policy, investment subsidies, European State aid control, competition law and economics

Suggested Citation

Friederiszick, Hans Wolfgang and Merola, Massimo, Regional State Aid Control in Europe: A Legal and Economic Assessment (December 1, 2015). ESMT Working Paper No. 15-05. Available at SSRN: https://ssrn.com/abstract=2698053 or http://dx.doi.org/10.2139/ssrn.2698053

ESMT European School of Management and Technology ( email )

Schlossplatz 1
Berlin, 10178
Germany

HOME PAGE: http://www.esmt.org/hans-w-friederiszick

Massimo Merola

College of Europe, Bruges ( email )

Dijver 11
B-8000 Brugge, Oost Vlanderen 10000
Belgium

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