State Aid Policy and Industrial Policy of the European Union

Author(s):  
Adam A. Ambroziak
2015 ◽  
Vol 53 (5) ◽  
pp. 1143-1162 ◽  
Author(s):  
Çiğdem Börke Tunali ◽  
Jan Fidrmuc

2020 ◽  
Vol 45 (2) ◽  
pp. 146-153
Author(s):  
Valeriі Rіeznikov

Since the beginning of 2020, there have been crisis phenomena around the world due to the global slowdown in economic growth and the introduction of quarantine due to the coronavirus pandemic. In this situation, the most vulnerable are developing countries with a small margin of safety, which, unfortunately, also applies to Ukraine, whose economy is open and highly dependent on external markets. Due to the slowdown in the growth of the global economy, the situation in one of the main export industries of Ukraine – industry is deteriorating first of all. The European Union has become one of the important export markets for Ukraine’s industrial products in recent years, which has raised the issue of shaping a relevant state industrial policy in today’s challenging environment. The purpose of the article is to determine the directions of formation and implementation of state industrial policy in the conditions of European integration of Ukraine in modern conditions. In 2020, due to the economic crisis and the pandemic of the coronavirus, the Ukrainian industry may lose even more due to low demand for ferrous metals in world markets, including in EU countries. The Agreement on Conformity Assessment and Acceptance of Industrial Products is a way of eliminating technical barriers to trade between Ukraine and the EU. The Agreement on Conformity Assessment and Acceptance of Industrial Products is a type of mutual recognition agreement that requires a partner country to align its legislation, practices and infrastructure with EU rules.It is envisaged that in the sectors covered by this Agreement, Ukrainian exporters will be able to label their products with the CE mark and to sell them freely on the EU market without additional EU certification. Potentially, the Agreement on Conformity Assessment and Acceptance of Industrial Products could cover up to a fifth of Ukraine’s exports to the EU, notably mechanical engineering products. The formation and implementation of state industrial policy in the conditions of European integration of Ukraine should take place using the following algorithm:1. Study of the new EU Regulation 2019/1020 of 20.06.2019 on market surveillance and conformity of products and elaboration of relevant amendments to the legislation of Ukraine.2. Concentration of the function of legal coordination of draft regulatory acts (including technical regulations) aimed at implementing the Association Agreement and preparation for the Agreement on Conformity Assessment and Acceptance of Industrial Products in one state instance, equipped with specialized personnel with adequate knowledge of EU law and languages.3. Strengthening the requirements for the accreditation and oversight process for accredited bodies, as well as the process of designating and monitoring conformity assessment bodies to ensure that their technical competence is adequate and to prevent fraud and the use of fraudulent practices.4. In the absence of a rapid prospect of concluding an Agreement on Conformity Assessment and Acceptance of Industrial Products, the harmonization of procedures and requirements that are too burdensome for exporters and importers, first and foremost.5. Paying particular attention to capacity building of state market surveillance authorities.6. Raising awareness of business entities and enhancing the role of business associations in raising such awareness.7. Increasing the EU’s interest in providing Ukraine with effective technical assistance for the development of legislation and the proper functioning of quality infrastructure and market surveillance authorities. Introduce the position of Deputy Prime Minister for Industry and launch support programs for the real economy. Thus, Ukraine’s further integration with the European Union is largely linked to the formulation and implementation of relevant industrial policy, which should be to continue reforming all sectors of the economy, in particular, to modernize the industrial complex. And the signing of the Agreement on Conformity Assessment and Acceptance of Industrial Products in the three priority sectors («industrial visa waiver») in the medium term should become one of the main foreign economic priorities of Ukraine’s European integration in the face of the current challenges of today.


2016 ◽  
Vol 9 (14) ◽  
pp. 145-157
Author(s):  
Virág Blazsek

The bank bailouts following the global financial crisis of 2008 have been subject to prior approval of the European Commission (EC), the competition authority of the European Union. The EC was reluctant to reject rescue efforts directed at failing banks and so it consistently approved all such requests submitted by Member States. Out of the top twenty European banks, the EC authorized State aid to at least twelve entities. In this context, the paper outlines the gradually changing interpretation of EU State aid rules, the “temporary and extraordinary rules” introduced starting from late 2008, and the extension of the “no-State aid” category. The above shifts show that the EC itself deflected from relevant EU laws in order to systemically rescue important banks in Europe and restore their financial stability. The paper argues that bank bailouts and bank rescue packages by the State have led to different effects on market structures and consumer welfare in the Eurozone and non-Eurozone areas, mostly the Eastern segments of the European Union. As such, it is argued that they are inconsistent with the European common market. Although the EC tried to minimize the distortion of competition created as a result of the aforementioned case law primarily through the application of the principle of exceptionality and different compensation measures, these efforts have been at least partially unsuccessful. Massive State aid packages, the preferential treatment of the largest, or systemically important, banks through EU State aid mechanisms – almost none of which are Central and Eastern European (CEE) – may have led to the distortion of competition on the common market. That is so mainly because of the prioritization of the stability of the financial sector and the Euro. The paper argues that State aid for failing banks may have had important positive effects in the short run, such as the promotion of the stability of the banking system and the Euro. In the longrun however, it has contributed to the unprecedented sovereign indebtedness in Europe, and contributed to an increased economic and political instability of the EU, particularly in its most vulnerable CEE segment.


Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter

This chapter addresses access to justice in the context of centralized enforcement of EU State aid law and judicial review before the Union courts. The subject matter of litigation is State aid measures adopted in particular by the European Commission as the main supervisory body in this field pursuant to Article 108 TFEU. The term ‘access to justice’ is meant to comprise both the various conditions of standing for bringing direct actions against such measures before the General Court (GC), which essentially comprise actions for annulment (Article 263 TFEU), actions for failure to act (Article 265 TFEU), and actions for damages (Article 268 in combination with Article 340(2) TFEU). The chapter also looks at the nature and the types of acts that are possibly subject to judicial review before the GC.


Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter

This chapter assesses the enforcement of EU State aid rules. The Commission is not the only authority involved in the monitoring of State aid. As regards the supervision of Member States' compliance with their obligations under Articles 107 and 108 TFEU, the national courts also have an important role to play. The implementation of that system of control is a matter for both the Commission and the national courts, their respective roles being complementary but separate. Whilst assessment of the compatibility of aid measures with the common market falls within the exclusive competence of the Commission, subject to review by the Courts of the European Union, it is for national courts to ensure the safeguarding, until the final decision of the Commission, of the rights of individuals faced with a possible breach by State authorities of the prohibition laid down by Article 108(3) TFEU.


2020 ◽  
Vol 8 (2) ◽  
pp. 233-238
Author(s):  
Margarida Matos Rosa

Abstract 2020 will be a landmark year for reasons that had not been anticipated. But it is also a critical year for the implementation, by national legislators in the European Union, of the ECN+ Directive. This will grant competition agencies stronger means of enforcement and will consecrate independence of enforcement decisions based on the pursuit of consumer welfare protection. Another developing topic in 2020 is industrial policy in the EU and its coexistence with competition policy. While the EU needs to remain pragmatic, it need not — must not, I would argue - lose its distinctive economic features.


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