Competition Policy in Europe – Temporary or Long-Lasting Changes?
During the first phase of the global crisis, the scale and scope of state aid increased at an unprecedented rate all over the world. Although their approval is – uniquely – part of competition policy in the European Union, the Commission and DG Competition did not oppose the unprecedented expansion of state aid. On the contrary, they played an active role in the modification and enforcement of frameworks. The paper analyses how EU regulation, prohibiting state aid for distorting competition, might be compatible with recent developments in this field. It comes to the conclusion that the European Commission proved to be strong enough to keep the regulation of distribution methods under control and to try to enforce the basic principles, but was unable to stem the tide of aid. By doing so, it contributed to the accumulation and growth of state deficits, the repeated destabilisation of financial markets and sovereign debts, and thus to the escalation of the second wave of the financial crisis in Europe in 2011.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael G. Arghyrou & Alexandros Kontonikas, 2011.
"The EMU sovereign-debt crisis: Fundamentals, expectations and contagion,"
European Economy - Economic Papers
436, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Arghyrou, Michael G. & Kontonikas, Alexandros, 2012. "The EMU sovereign-debt crisis: Fundamentals, expectations and contagion," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 658-677.
- Arghyrou, Michael G. & Kontonikas, Alexandros, 2010. "The EMU sovereign-debt crisis: Fundamentals, expectations and contagion," SIRE Discussion Papers 2010-81, Scottish Institute for Research in Economics (SIRE).
- Michael G. Arghyrou & Alexandros Kontonikas, 2010. "The EMU sovereign-debt crisis: Fundamentals, expectations and contagion," Working Papers 2010_25, Business School - Economics, University of Glasgow.
- Arghyrou, Michael G. & Kontonikas, Alexandros, 2011. "The EMU sovereign-debt crisis: fundamentals, expectations and contagion," SIRE Focus Papers 2011-01, Scottish Institute for Research in Economics (SIRE).
- Arghyrou, Michael G & Kontonikas, Alexandros, 2010. "The EMU sovereign-debt crisis: Fundamentals, expectations and contagion," Cardiff Economics Working Papers E2010/9, Cardiff University, Cardiff Business School, Economics Section.
- Voszka, Éva, 2009.
"Versenybarát és versenykorlátozó állam - válság előtt, válság közben
[The pro-competition and a competition-restricting state - before and during the crisis]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 913-932.
When requesting a correction, please mention this item's handle: RePEc:pfq:journl:v:57:y:2012:i:1:p:71-90. 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: (Pál Péter Kolozsi)The email address of this maintainer does not seem to be valid anymore. Please ask Pál Péter Kolozsi to update the entry or send us the correct address
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.