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Aiding Car Producers in the EU: Money in Search of a Strategy

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  • Marcella Nicolini
  • Carlo Scarpa
  • Paola Valbonesi

Abstract

This article investigates how the general principles of the Treaty have been applied to the car sector in the EU, where the soft law provisions are of particular interest. A detailed quantitative analysis from 1990 to 2008 highlights a reduction of aid over time. A shift from sectoral to “regional development” motives in granting aid to the sector is also observed in the last 10 years. However, sector specific aid is now less explicit but it remains important. Large amounts of public money are spent without a consistent strategy, reducing capacity in some cases, expanding it in others. The scarcity of public funds calls for a more focussed European policy for this industry. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jincot:v:13:y:2013:i:1:p:67-87
    DOI: 10.1007/s10842-012-0146-5
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    Cited by:

    1. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2012. "Public support for the European car industry: An integrated analysis," ZEW Discussion Papers 12-077, ZEW - Leibniz Centre for European Economic Research.
    2. 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.
    3. Agostino, M. & Nifo, A. & Ruberto, S. & Scalera, D. & Trivieri, F., 2022. "Productivity changes in the automotive industry of three European countries. An application of the Malmquist index decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 216-226.
    4. Laura Grigolon & Nina Leheyda & Frank Verboven, 2015. "Public Support to the European Car Industry: The Impact of the Financial Crisis," Journal of Industry, Competition and Trade, Springer, vol. 15(3), pages 283-321, September.
    5. Ben Clift, 2013. "Economic Patriotism, the Clash of Capitalisms, and State Aid in the European Union," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 101-117, March.
    6. Marco Schito, 2021. "A Sectoral Approach to the Politics of State Aid in the European Union: an Analysis of the European Automotive Industry," Journal of Industry, Competition and Trade, Springer, vol. 21(1), pages 1-31, March.
    7. 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.
    8. Michael Blauberger & Rike Krämer, 2013. "European Competition vs. Global Competitiveness Transferring EU Rules on State Aid and Public Procurement Beyond Europe," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 171-186, March.

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    More about this item

    Keywords

    automotive industry; state aid to business; EU competition policy; L62; L52; L40;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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