Advanced

State Aid in the EU - Economic and Legal Aspects

Nordeman, Rikard (2008)
Department of Economics
Abstract
The purpose of this paper is to examine the correlation between the economic theory and judicial rules governing state aid within the EU. Economic theory suggests that state aid give rise to a loss in efficiency, but might nevertheless but utilised to carry out countries industrial policies and to remedy market failures. The EU’s rules are inspired by these economic considerations and therefore make use of a general prohibition against state aid. However, this is a general rule with many exceptions. The most important being the rules governing aid pursuing ‘horizontal objectives’, objectives meant to target a market failure. There is further a downward trend in total aid in relation to GDP in the EU during the last decade, as well as an... (More)
The purpose of this paper is to examine the correlation between the economic theory and judicial rules governing state aid within the EU. Economic theory suggests that state aid give rise to a loss in efficiency, but might nevertheless but utilised to carry out countries industrial policies and to remedy market failures. The EU’s rules are inspired by these economic considerations and therefore make use of a general prohibition against state aid. However, this is a general rule with many exceptions. The most important being the rules governing aid pursuing ‘horizontal objectives’, objectives meant to target a market failure. There is further a downward trend in total aid in relation to GDP in the EU during the last decade, as well as an increased proportion of horizontal aid in relation to total aid. A development meaning a more economic friendly approach towards aid, and the existence of fewer distortions within the common market. (Less)
Please use this url to cite or link to this publication:
author
Nordeman, Rikard
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
EU, Competition, state aid, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1336555
date added to LUP
2008-02-07
date last changed
2010-08-03 10:51:28
@misc{1336555,
  abstract     = {The purpose of this paper is to examine the correlation between the economic theory and judicial rules governing state aid within the EU. Economic theory suggests that state aid give rise to a loss in efficiency, but might nevertheless but utilised to carry out countries industrial policies and to remedy market failures. The EU’s rules are inspired by these economic considerations and therefore make use of a general prohibition against state aid. However, this is a general rule with many exceptions. The most important being the rules governing aid pursuing ‘horizontal objectives’, objectives meant to target a market failure. There is further a downward trend in total aid in relation to GDP in the EU during the last decade, as well as an increased proportion of horizontal aid in relation to total aid. A development meaning a more economic friendly approach towards aid, and the existence of fewer distortions within the common market.},
  author       = {Nordeman, Rikard},
  keyword      = {EU,Competition,state aid,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {State Aid in the EU - Economic and Legal Aspects},
  year         = {2008},
}