Alexandros Lymperopoulos

European State Aid Law Quarterly, Volume 23 (2024), Issue 1, Page 40 - 55

The economic security strategy that the EU has recently introduced signals a turn in EU trade policy. Once a zealous advocate of free trade, the EU has now decided to adopt a ‘yes, but’ approach in its trade relations. This paper argues that the new strategy has been influenced to a degree by the trade suggestions of the 2019 Franco-German Manifesto for a European industrial policy. This paper also analyses the proposed tools of the new strategy and discusses their efficacy. It argues that economic security is distinct from, yet related to, industrial policy and explains why and how State aid law and merger control have a role to play in achieving economic security. The following analysis highlights that EU State aid law is aware of and responsive to international subsidies and seems aligned with economic security considerations. Regarding competition law, however, the European Commission has yet to understand the potential contribution of merger control in pursuing economic security and is hesitant to include it in the toolkit of the economic security strategy. That being said, aligning State aid and merger control with economic security is not without contradictions or risks. Keywords: Economic Security; EU Trade Policy; Competition Law; Franco-German Manifesto For A European Industrial Policy.

Daniela Gschwindt, Julia Zöchling

European State Aid Law Quarterly, Volume 22 (2023), Issue 2, Page 225 - 229

Kseniia Smyrnova, Erika Szyszczak

European State Aid Law Quarterly, Volume 19 (2020), Issue 1, Page 8 - 18

In recent years competition clauses (including the unique EU State aid rules) have been introduced into EU trade Treaties and in particular, the EU is developing a neighbourhood policy where trade should be open but on the same, or very similar regulatory terms as EU internal policies. One of the most advanced forms of competition clauses being used in a trade Treaty is the EU-Ukraine Association Agreement 2014 together with the Deep and Comprehensive Free Trade Agreement 2016. In particular Ukraine must establish a similar form of State aid control to the model used internally in the EU, linking the concepts of competition and market access. Within a relatively short period of time Ukraine has created a State aid unit within its Antimonopoly Committee (AMC) and this unit is responsible for scrutinizing and investigating a very large number of State aid notifications with a very small and inexperienced staff. This Article examines how the regulation of State aid has been transformed in Ukraine, contributing to an internal modernization of industrial policy, allowing for greater transparency and scrutiny of the use of public finances in Ukraine. In so doing, the Article identifies the challenges already faced by the AMC and the potential for improving the system of State aid control in Ukraine. Keywords: Ukraine; Industrial policy; Association Agreement; EU trade policy.

Hubertus Bardt

European State Aid Law Quarterly, Volume 19 (2020), Issue 4, Page 430 - 439

State intervention in market processes has always been controversial within the European Union and its Member States. Since the beginning, industrial policy in Germany and the EU has been a mixture of vertical and horizontal instruments with a focus on horizontal approaches. State aid control has led to a more rule-based use of this instrument. Subsidies related to industrial policy have been significantly reduced in the last 20 years and play only a minor role for European countries. However, transformative developments with potential disruptive effects may now require a more active approach to industrial policy, where State aid can play a greater role. Climate change and the necessity to finance low-carbon production capacities that are not competitive on international markets can justify financial assistance. At the same time, trade conflicts with China are at least partly caused by uncontrolled State aid in the State-capitalist Chinese economic system. An international agreement on State aid rules would be a better solution than continuous trade distortions or countermeasures in form of additional European subsidies. Finally, the Covid-19 crisis has triggered additional public funds for private companies. While short-term rescue measures and medium-term investment programmes are important, a return to lower pre-crisis level of State aid and government intervention into market processes cannot be taken for granted. Keywords: industrial policy; transformation; economic crisis; Germany; China