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State Aid in the Enlarged European Union. An Overview

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Author Info

  • Jens Hölscher
  • Nicole Nulsch
  • Johannes Stephan

Abstract

In the early phase of transition that started with the 1990s, Central and Eastern European Countries pursued economic restructuring of the enterprise sector that involved massive injections of state support. Also foreign investment from the West and facilitation of the development of a market economy involved massive injections of state support. With their accession to the European Union (EU), levels and forms of state aid came under critical review by the European Commission. This inquiry investigates whether the integration of the new member states operates on a level playing field with respect to state aid. Quantitative and qualitative analysis is relied upon to answer this key, as well as other, related questions. Findings suggest that in recent years a level playing field across the EU has indeed emerged. State aid in the new EU member countries is rather handled more strictly than laxer compared to the ‘old’ EU countries.

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Bibliographic Info

Paper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 24.

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Date of creation: Nov 2010
Date of revision:
Handle: RePEc:iwh:dispap:24-10

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Related research

Keywords: competition policy; economic transition; EU enlargement; state aid;

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References

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  1. Lars-Hendrik Röller & Christian von Hirschhausen, 1996. "State Aid, Industrial Restructuring and Privatization in the New German Länder: Competition Policy with Case Studies of the Shipbuilding and Synthetic Fibres Industries," CIG Working Papers FS IV 96-13, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  2. Jens Hölscher & Johannes Stephan, 2004. "Competition Policy in Central Eastern Europe in the Light of EU Accession," Journal of Common Market Studies, Wiley Blackwell, vol. 42(2), pages 321-345, 06.
  3. Rainer Nitsche & Paul Heidhues, 2006. "Study on methods to analyse the impact of state aid on competition," European Economy - Economic Papers 244, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  4. Jens Hölscher & Johannes Stephan, 2009. "Competition and Antitrust Policy in the Enlarged European Union: A Level Playing Field?," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 863-889, 09.
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Cited by:
  1. Nicole Nulsch, 2014. "Is Subsidizing Companies in Difficulties an Optimal Policy? An Empirical Study on the Effectiveness of State Aid in the European Union," IWH Discussion Papers 9, Halle Institute for Economic Research.

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