State Aid Policy In The European Union, Study Case:Romania

This work is an approach to state aid policy, as part of European Union policy in the field of competition. The paper proposes to pursue the achievement of the specific objectives of: presentation of conceptual framework of "economic competitiveness", which contains the definitions formulated by the literature and the evolution of this concept from the perspective of economic theory and analysis of the forms that assume economic competition in the market economy; critical analysis of the role, importance and significance on state aid; economic analysis of granting state aid; analysis of the institutional framework of the state aid policy, aiming to give the existence of supranational control in this area from the European Commission, as well as the specific role fulfilled by the European Court of Justice, the European Parliament and the Council of the EU, the rules that are set out, The 'State aid rules' are set out by the European Commission and comprise various articles of the Treaty on the Functioning of the European Union, regulations, frameworks and guidelines - which set out what aid can be given. The European Commission governs member states' compliance with these rules and must be notified of all schemes involving State aid. State aid control stems from the need to maintain a level playing field for all companies active in the Single Market, irrespective of the Member State in which they are established. State aid control also contributes to avoiding contests between Member States where they try to outbid each other to attract investment. Preserving competitive markets is the best way for European citizens to get the products they want at competitive prices, and to foster innovation and growth. State aid is one of the few remaining ways in which Member States can hold up liberalization and protect companies from competition. As sectors become open to competition, the State aid rules start to become more important â€" this includes areas which have been the subject to State monopoly. Where in years past, sectors were national in nature, they have become cross-border: coal, transport, financial services and broadcasting are examples. The paper also contains an empirical analysis of State aid granted in the period 2008-2011 for Romania. State aid has been analyzed from multiple perspectives to pleasantly surprise to an extent as comprehensive place and their role as the grant of economic phenomenon.