From Market Integration to Fiscal Discipline: Analysing the Goals of EU State Aid Policy from an Economic Perspective

Regulatory Reform in China and EU: A Law and Economic Perspective”, edited by Stefan Weishaar, Niels Philipsen and Wenming Xu and published by Edward Elgar (2017), 139-162.

Maastricht Faculty of Law Working Paper No. 2016-5

24 Pages Posted: 10 Oct 2016 Last revised: 24 Feb 2019

See all articles by Niels J. Philipsen

Niels J. Philipsen

Maastricht University - Faculty of Law, Metro

Date Written: October 10, 2016

Abstract

This chapter discusses the rationale for State aid control as part of competition law. Like in other areas of EU competition law, such as abuse of dominance and merger control, there is a clear shift towards a ‘more economic approach’ and a stronger focus on efficiency. However, this stronger focus on efficiency with regard to a politically sensitive area such as State aid is not self-evident, and also raises the question why other jurisdictions do not have a similar control on market intervention by States (US) or provinces (China). It also raises the question whether controlling the efficiency of government spending should be a task of the EU rather than Member States. The aim of this paper is therefore to critically assess the changing goals of EU State aid policy, from market integration and equity to efficiency and fiscal discipline.

Keywords: State aid, Fiscal discipline, Goals of competition policy, Economics of federalism

JEL Classification: K21, K33, L44, L51

Suggested Citation

Philipsen, N. J., From Market Integration to Fiscal Discipline: Analysing the Goals of EU State Aid Policy from an Economic Perspective (October 10, 2016). Regulatory Reform in China and EU: A Law and Economic Perspective”, edited by Stefan Weishaar, Niels Philipsen and Wenming Xu and published by Edward Elgar (2017), 139-162., Maastricht Faculty of Law Working Paper No. 2016-5, Available at SSRN: https://ssrn.com/abstract=2850358 or http://dx.doi.org/10.2139/ssrn.2850358

N. J. Philipsen (Contact Author)

Maastricht University - Faculty of Law, Metro ( email )

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