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State Aid Policy, Territoriality and Federalism: EU Scrutiny and Control of Regional Aid and the Supranationalisation of Subnational Autonomy in Federal Member States

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  • Hagen Streb

Abstract

Whilst its impact on national industrial policy has attracted considerable attention in the scholarly literature, the implications of EU state aid policy on regional development policy and its effects on territorial relations inside EU member states have been largely neglected. Drawing on the experience of Bavaria, Flanders and Upper Austria, this article shows how EU action has imposed increasingly wide reaching and detailed constraints on subnational authorities, undermining and eroding their capacity to define and implement regional policy. It thereby also challenges the widely held presumption in the EU literature, as for example by proponents of multi-level governance, that European integration works invariably to empower and strengthen regions in Europe. To the contrary, the case studies show that the autonomy of subnational states in EU member countries with federal systems has been eroded as they have been forced to abandon traditional policies and practices. More generally, the article invites reconsideration of the relationship between European integration and subnational authorities. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Hagen Streb, 2013. "State Aid Policy, Territoriality and Federalism: EU Scrutiny and Control of Regional Aid and the Supranationalisation of Subnational Autonomy in Federal Member States," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 129-141, March.
    • Handle: RePEc:kap:jincot:v:13:y:2013:i:1:p:129-141
    DOI: 10.1007/s10842-012-0144-7
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    References listed on IDEAS

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    1. Krieger-Boden, Christiane, 1987. "Zur Regionalpolitik der Europäischen Gemeinschaft," Open Access Publications from Kiel Institute for the World Economy 1340, Kiel Institute for the World Economy (IfW Kiel).
    2. Michelle Everson, 2013. "The Constitutional Structures of the National Political Economy: Barrier to or Precondition for European Integration?," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 119-128, March.
    3. Marcella Nicolini & Carlo Scarpa & Paola Valbonesi, 2013. "Aiding Car Producers in the EU: Money in Search of a Strategy," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 67-87, March.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    state aid; federalism; subnational authorities; regional aid; multi-level governance; europeanization; H70; K2; O25; O52; P11; R58;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • K2 - Law and Economics - - Regulation and Business Law
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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