IDEAS home Printed from
   My bibliography  Save this article

Subventions et politique de concurrence


  • Patrick Legros


Transfers to firms and regions are made both at the level of member states (state aids) and at the level of the European Commission (Structural Funds). State aids can take different forms: direct (transfers, tax exemptions) or indirect (e.g., the definition of the reserved area in network industries). There are significant cross-country differences both in the magnitude and the type of instruments used for state aids. The European Commission acts as a de-facto regulator by using competition law to approve state aids. We analyze the rationale of this two step process by pointing out the benefits of decentralizing redistributive decisions to the member states and the costs linked to reduced coordination (the use of structural funds, viewed as a complement to state aids, reduces some of these costs). We then point out that in a second best world objectives of redistribution are not incompatible with competition but that their relationship is less straightforward than with perfect markets; this has consequences for the rationale of having block exemptions, and for the effects of structural funds.

Suggested Citation

  • Patrick Legros, 2004. "Subventions et politique de concurrence," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 11-24.
  • Handle: RePEc:cai:rpvedb:rpve_431_0011

    Download full text from publisher

    File URL:
    Download Restriction: free

    File URL:
    Download Restriction: free

    Other versions of this item:

    References listed on IDEAS

    1. Devereux, Michael P & Griffith, Rachel, 2003. "Evaluating Tax Policy for Location Decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(2), pages 107-126, March.
    2. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    3. Mathias Dewatripont & Françoise Thys-Clément & Luc Wilkin, 2001. "The strategic analysis of universities: microeconomic and management perspectives," ULB Institutional Repository 2013/9553, ULB -- Universite Libre de Bruxelles.
    4. Micael Castanheira De Moura & Georges Siotis, 2004. "Regions in Europe: Sisyphus or Phoenix?," ULB Institutional Repository 2013/10023, ULB -- Universite Libre de Bruxelles.
    5. Vincent Dupont & Philippe Martin, 2006. "Subsidies to poor regions and inequalities: some unpleasant arithmetic," Journal of Economic Geography, Oxford University Press, vol. 6(2), pages 223-240, April.
    6. Vincent Dupont & Philippe Martin, 2006. "Subsidies to poor regions and inequalities: some unpleasant arithmetic," Journal of Economic Geography, Oxford University Press, vol. 6(2), pages 223-240, April.
    7. Dixit, Avinash K & Kyle, Albert S, 1985. "The Use of Protection and Subsidies for Entry Promotion and Deterrence," American Economic Review, American Economic Association, vol. 75(1), pages 139-152, March.
    8. Collie, David R., 2000. "State aid in the European Union: The prohibition of subsidies in an integrated market," International Journal of Industrial Organization, Elsevier, vol. 18(6), pages 867-884, August.
    9. Patrick Legros & Andrew Newman, 2001. "Segregation, efficiency and equity," ULB Institutional Repository 2013/7060, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:rpvedb:rpve_431_0011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.