State Aid as a Crisis Management Tool: Observations into EU State Aid Law and Impacts on Member State Discretion
(2025) JAEM03 20251Department of Law
Faculty of Law
- Abstract
- Since 2000, the EU has faced significant economic challenges linked to both the Global Financial Crisis in 2008 and the outbreak of the COVID-19 pandemic in 2020. These challenges triggered the need for urgent intervention on both
national and EU levels, which prompted rapid responses from the European Commission. This thesis explores the relationship between EU state aid law and the crisis response mechanisms introduced during these crises to ascertain
whether they have prompted a reevaluation of the leniency in the face of such emergencies.
Within the field of EU state aid law, there is a general prohibition of state interventions. The Commission, however, has the exclusive competence to categorize aid as compatible with the... (More) - Since 2000, the EU has faced significant economic challenges linked to both the Global Financial Crisis in 2008 and the outbreak of the COVID-19 pandemic in 2020. These challenges triggered the need for urgent intervention on both
national and EU levels, which prompted rapid responses from the European Commission. This thesis explores the relationship between EU state aid law and the crisis response mechanisms introduced during these crises to ascertain
whether they have prompted a reevaluation of the leniency in the face of such emergencies.
Within the field of EU state aid law, there is a general prohibition of state interventions. The Commission, however, has the exclusive competence to categorize aid as compatible with the internal market, following an analysis of notifications provided by Member States and their effect and potential damage. The responses taken pursuant to the crises led to the Commission embracing a more malleable approach in its assessment of notified aid. This thesis addresses
whether these responses have altered the discretion of Member States in the process, to provide a comprehensive understanding of how crises have impacted Member States’ involvement in the granting of aid.
In reaching its conclusion, the thesis analyzes five main sections following a black-letter analytical approach coupled with a running comparative analysis of the approaches taken through the lens of the Global Financial Crisis and the
COVID-19 pandemic. To help further discussion, it conducts an assessment of parallels with similar approaches taken in the fields of free movement and public procurement law to help determine whether a shift in the level of discretion has been awarded in practice.
The thesis concludes that, in relation to the Commission decisions taken and the frameworks adopted, the flexible and lenient approach embraced in its analysis has heightened the impression of greater Member State discretion. Particularly, as the burden of proof to provide all necessary information falls on the Member States, ultimately enabling them to take the steps necessary to ensure the aid measure notified aligns with the Commission’s new interpretations. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9199234
- author
- Nimlin, Clara LU
- supervisor
- organization
- course
- JAEM03 20251
- year
- 2025
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- competition law, state aid law, discretion, financial crisis 2008, COVID-19 pandemic, free movement, public procurement, Member States, European Commission
- language
- English
- id
- 9199234
- date added to LUP
- 2025-06-19 14:41:56
- date last changed
- 2025-06-19 14:41:56
@misc{9199234,
abstract = {{Since 2000, the EU has faced significant economic challenges linked to both the Global Financial Crisis in 2008 and the outbreak of the COVID-19 pandemic in 2020. These challenges triggered the need for urgent intervention on both
national and EU levels, which prompted rapid responses from the European Commission. This thesis explores the relationship between EU state aid law and the crisis response mechanisms introduced during these crises to ascertain
whether they have prompted a reevaluation of the leniency in the face of such emergencies.
Within the field of EU state aid law, there is a general prohibition of state interventions. The Commission, however, has the exclusive competence to categorize aid as compatible with the internal market, following an analysis of notifications provided by Member States and their effect and potential damage. The responses taken pursuant to the crises led to the Commission embracing a more malleable approach in its assessment of notified aid. This thesis addresses
whether these responses have altered the discretion of Member States in the process, to provide a comprehensive understanding of how crises have impacted Member States’ involvement in the granting of aid.
In reaching its conclusion, the thesis analyzes five main sections following a black-letter analytical approach coupled with a running comparative analysis of the approaches taken through the lens of the Global Financial Crisis and the
COVID-19 pandemic. To help further discussion, it conducts an assessment of parallels with similar approaches taken in the fields of free movement and public procurement law to help determine whether a shift in the level of discretion has been awarded in practice.
The thesis concludes that, in relation to the Commission decisions taken and the frameworks adopted, the flexible and lenient approach embraced in its analysis has heightened the impression of greater Member State discretion. Particularly, as the burden of proof to provide all necessary information falls on the Member States, ultimately enabling them to take the steps necessary to ensure the aid measure notified aligns with the Commission’s new interpretations.}},
author = {{Nimlin, Clara}},
language = {{eng}},
note = {{Student Paper}},
title = {{State Aid as a Crisis Management Tool: Observations into EU State Aid Law and Impacts on Member State Discretion}},
year = {{2025}},
}