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Selectivity and Proportionality:

Can State Aid Control Learn from the Free Movement Rationale?

Christos Nikolaos Kalyka


Keywords: selectivity, proportionality, national objectives, consistency

This article reviews the interaction between EU State aid control and free movement law. A critical assessment of the case-law suggests that both regimes contribute to the attainment of similar goals: the establishment of an undistorted market. Their complementary interplay suggests that some principles from the case law on free movement can be used as an interpretative tool in relation to State aid, especially in the assessment of material selectivity. Accordingly, the extent to which State aid control can assess the competence of Member States to pursue national objectives is explored. National objectives can be pursued, provided the measures incorporating them are consistent with the objective pursued. The assessment of consistency in essence adopts elements of the principle of proportionality which is used under free movement law and therefore it does not prevent the ability of Member States to promote national interests, rather it assesses the coherence of the regulatory standard used for the promotion of the objective.
Keywords: selectivity; proportionality; national objectives; consistency

Christos Nikolaos Kalykas, lawyer, LLM Competition law, King’s College London. This article is base on the master thesis ‘State aid control: Selectivity under the scope of free movement rationale’. I express my deepest gratitude to Professor Andrea Biondi for his support during the master thesis process. No outside funding was received or relied upon for this article. All errors remain my own.


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