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The New Political Economy of EU State Aid Policy

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  • Hussein Kassim
  • Bruce Lyons

Abstract

Despite its importance and singularity, the EU’s state aid policy has attracted less scholarly attention than other elements of EU competition policy. Introducing the themes addressed by the special issue, this article briefly reviews the development of EU policy and highlights why the control of state aid matters. The Commission’s response to the current economic crisis notably in banking and the car industry is a key concern, but the interests of the special issue go far beyond. They include: the role of the European Commission in the development of EU policy, the politics of state aid, and a clash between models of capitalism. The special issue also examines the impact of EU policy. It investigates how EU state aid decisions affect not only industrial policy at the national level (and therefore at the EU level), but the welfare state and territorial relations within federal member states, the external implications of EU action and the strategies pursued by the Commission to limit any potential disadvantage to European firms, and the conflict between the EU’s expanding legal order and national. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Hussein Kassim & Bruce Lyons, 2013. "The New Political Economy of EU State Aid Policy," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 1-21, March.
    • Handle: RePEc:kap:jincot:v:13:y:2013:i:1:p:1-21
    DOI: 10.1007/s10842-012-0142-9
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    References listed on IDEAS

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    Cited by:

    1. Natalya Naqvi & Anne Henow & Ha-Joon Chang, 2018. "Kicking away the financial ladder? German development banking under economic globalisation," Review of International Political Economy, Taylor & Francis Journals, vol. 25(5), pages 672-698, September.
    2. Çiğdem Börke Tunali & Jan Fidrmuc, 2015. "State Aid Policy in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 53(5), pages 1143-1162, September.
    3. Heim, Sven & Hüschelrath, Kai & Schmidt-Dengler, Philipp & Strazzeri, Maurizio, 2017. "The impact of state aid on the survival and financial viability of aided firms," European Economic Review, Elsevier, vol. 100(C), pages 193-214.
    4. Karsten Mause & Friedrich Gröteke, 2017. "The Economic Approach to European State Aid Control: A Politico-Economic Analysis," Journal of Industry, Competition and Trade, Springer, vol. 17(2), pages 185-201, June.
    5. Zuba-Ciszewska Maria, 2023. "The role of state aid for the food industry – Based on the example of dairies in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(2), pages 101-116, June.
    6. Koert Buiren & Daan in ‘t Veld & Janneke Voort, 2019. "State Aid and Competition: Application of a Social Welfare Criterion to State Aid," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 389-411, September.
    7. Ruud van Druenen & Pieter Zwaan & Ellen Mastenbroek, 2022. "Getting State Aid Approved by the European Commission: Explaining the Duration of Preliminary Investigations in the State Aid Notification Procedure," Journal of Common Market Studies, Wiley Blackwell, vol. 60(3), pages 545-561, May.
    8. Daniel Finke, 2020. "At loggerheads over state aid: Why the Commission rejects aid and governments comply," European Union Politics, , vol. 21(3), pages 474-496, September.
    9. Elin Lerum Boasson, 2019. "Constitutionalization and Entrepreneurship: Explaining Increased EU Steering of Renewables Support Schemes," Politics and Governance, Cogitatio Press, vol. 7(1), pages 70-80.

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    More about this item

    Keywords

    state aid; European Union; European Commission; market regulation; Europeanization; D73; F53; H83; K20; L32; L38; L44; L88; L98; O52;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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