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State Aid Policies in Response to the COVID-19 Shock: Observations and Guiding Principles

Author

Listed:
  • Massimo Motta

    (Barcelona Graduate School of Economics)

  • Martin Peitz

    (University of Mannheim)

Abstract

As a general principle, state aid to firms and sector-specific support schemes should be used only when there are market failures; that is, when there are good reasons to believe that the market would not deliver efficient and/or equitable outcomes.

Suggested Citation

  • Massimo Motta & Martin Peitz, 2020. "State Aid Policies in Response to the COVID-19 Shock: Observations and Guiding Principles," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 219-222, July.
    • Handle: RePEc:spr:intere:v:55:y:2020:i:4:d:10.1007_s10272-020-0902-4
    DOI: 10.1007/s10272-020-0902-4
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    References listed on IDEAS

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    1. Massimo Motta & Martin Peitz, 2020. "EU state aid policies in the time of COVID-19," Vox eBook Chapters, in: AgneÌ€s BeÌ nassy-QueÌ reÌ & Beatrice Weder di Mauro (ed.), Europe in the Time of Covid-19, edition 1, volume 1, chapter 1, pages 73-77, Centre for Economic Policy Research.
    2. Massimo Motta & Martin Peitz, 2020. "The EU recovery fund: An opportunity for change," Vox eBook Chapters, in: AgneÌ€s BeÌ nassy-QueÌ reÌ & Beatrice Weder di Mauro (ed.), Europe in the Time of Covid-19, edition 1, volume 1, chapter 1, pages 78-82, Centre for Economic Policy Research.
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    Citations

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    Cited by:

    1. Dorothée De Franclieu & Émilie Hermet, 2021. "State aid in the Covid-19 crisis: a European dilemma [Les aides d’État dans la crise Covid 19 : un dilemme européen]," Bulletin de la Banque de France, Banque de France, issue 238.
    2. Antoine Camous & Grégory Claeys, 2020. "The evolution of European economic institutions during the COVID‐19 crisis," Post-Print hal-03972146, HAL.
    3. Julia Anderson & Simone Tagliapietra & Guntram B. Wolff, 2020. "A Framework for a European Economic Recovery After COVID-19," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 209-215, July.
    4. Antonia Díaz & Luis A. Puch, 2021. "EU After COVID-19: An Opportunity for Policy Coordination," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(4), pages 197-200, July.
    5. Antonia Díaz, 2020. "Common Fiscal Capacity Is Needed to Strengthen Risk Sharing," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(4), pages 215-219, July.

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    More about this item

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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