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European Competition vs. Global Competitiveness Transferring EU Rules on State Aid and Public Procurement Beyond Europe

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  • Michael Blauberger
  • Rike Krämer

Abstract

As long as state aid outside the EU is unregulated, the European Commission faces a dilemma: either European firms will be disadvantaged in global competition by strict EU rules, or the Commission will come under pressure to relax the rules, thereby running the risk that fair competition within the EU will be undermined. As a consequence, the Commission attempts to promote EU rules on state aid and public procurement beyond EU borders — in non-member countries as well as at the WTO level. This article analyses the Commission’s channels of regulatory transfer and the factors accounting for its varying success. Bilateral cooperation provides many opportunities to spread European state aid rules, but decentralised enforcement at the national level remains ultimately deficient. Moreover, the transfer of European rules to the multilateral WTO depends heavily on the EU’s ability to reach prior consensus with its most powerful partner and rival, the US government. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jincot:v:13:y:2013:i:1:p:171-186
    DOI: 10.1007/s10842-012-0136-7
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    References listed on IDEAS

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    1. Sedelmeier, Ulrich, . "Europeanisation in new member and candidate states," Living Reviews in European Governance (LREG), Institute for European integration research (EIF).
    2. Stehn, Jürgen, 1996. "Subsidies, countervailing duties, and the WTO: Towards an open subsidy club," Kiel Discussion Papers 276, Kiel Institute for the World Economy (IfW Kiel).
    3. Rubini, Luca, 2009. "The Definition of Subsidy and State Aid: WTO and EC Law in Comparative Perspective," OUP Catalogue, Oxford University Press, number 9780199533398.
    4. 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. Dodescu D.B. Anca, 2015. "State Aid And Competitiveness Composed Indicators For Romania And Slected Eu Member States. A Comparative Analisys," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 173-183, July.
    2. Milenkovic, Marko, 2016. "EU integration and the introduction of State aid control in Serbia: Institutional challenges and reform prospects," Discussion Papers 1/16, Europa-Kolleg Hamburg, Institute for European Integration.
    3. Stella Ladi & Dimitris Tsarouhas, 2017. "International diffusion of regulatory governance: EU actorness in public procurement," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 388-403, December.

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    More about this item

    Keywords

    state aid; public procurement; regulatory export; F5; H5; L4;
    All these keywords.

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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