scholarly journals The 2019 ‘Fitness Check’ of State Aid Modernisation Reform of 2012—An Opportunity to Redefine and Reintroduce Sustainability into the EU/EEA State Aid Rules? The Example of the Transport Sector

2019 ◽  
Vol 11 (22) ◽  
pp. 6328 ◽  
Author(s):  
Cyndecka

This article intends to launch a discussion on the possibilities of introducing more sustainability into the rules on granting State aid. State aid law constitutes a crucial part of the internal market regulation. In principle, granting public support to companies is prohibited in the European Union (EU) as such state intervention distorts competition. In some cases, however, aid may be allowed if it pursues a legitimate public policy objective such as research, regional development, transport or environmental protection. In 2017, the EU Member States spent EUR 116.2 billion, i.e., 0.76% of GDP, on State aid at the EU level. While aid to the environment and energy saving promotes sustainability, the question is whether other types of aid also do so. This article provides a brief explanation of the rationale behind State aid control, explains how ‘good aid’ may be approved by the European Commission or EFTA Surveillance Authority (ESA) before it is granted by the Member States and proposes taking a closer look at the current guidelines for granting aid in the transport sector. This sector has a serious impact on the environment and human well-being, while it is heavily subsidised by the state.

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):  
Ramūnas Vilpišauskas

For Lithuania, the geopolitical motive to join the European Union (EU) in order to prevent a repetition of the 1940s occupation has been as important as a motive to “return to Europe.” This motivation to become part of the West led the country’s political elites to conceptualize accession into the EU as an important part of the transition reforms which were expected to modernize Lithuania’s economy, public administration, and governance as well as contribute to the country’s security and create conditions for economic catching up. Membership in the EU, accession into NATO, and good neighborly relations became the three cornerstones of Lithuania’s foreign policy since the early 1990s and enjoyed broad political support. It was this support that arguably allowed for the maintenance of political and administrative mobilization and consistency of preparations for the membership during the pre-accession process. Public support for the EU membership remained above the EU average since accession in 2004. Around the time of accession, a new concept of Lithuania as “a regional leader” was formulated by the core of the nation’s foreign policy makers. The concept of a regional leader implied active efforts of mediating between Eastern neighbors and the EU, often in coordination with Poland, which was driven by the desire to stabilize the Eastern neighborhood and advance relations between Eastern neighbors and the EU and NATO. Although coalition building within the EU has been fluctuating between a strategic partnership with Poland and Baltic-Nordic cooperation, also most recently the New Hanseatic league, attention to the Eastern neighborhood and geopolitical concerns originating from perceived aggressive Russian policies remained a defining characteristic of the country’s European policy independent of personalities and political parties, which have been at the forefront of policy making. Completion of integration into the EU, in particular in the fields of energy and transport, as well as dealing with “leftovers” from accession into the EU, such as joining the Schengen area and the euro zone, became the other priorities since 2004. Lithuania has been one of the fastest converging countries in the EU in terms of GDP per capita since its accession. However, membership in the EU Single Market also had controversial side effects. Relatively large flows of emigrants to other EU member states generated political debates about the quality of governance in Lithuania and its long-term demographic trends such as a decreasing and aging population. Introduction of the euro in 2015 was perceived by the public as the main factor behind price rises, making inflation the most important public issue in 2016–2018. High per capita income growth rates as well as the prospect of the United Kingdom exiting the EU triggered discussions about excessive dependency on EU funding, the potential effects of its decline after 2020, and sources of economic growth. There are increasingly divergent opinions regarding further deepening of integration within the EU, especially in regard to alignment of member states’ foreign and security policies as well as tax harmonization. Still, membership in the EU is rarely questioned, even by those who oppose further integration and advocate a “Europe of nations.”


2015 ◽  
Vol 4 (3) ◽  
pp. 157-172
Author(s):  
Piotr Podsiadło

The aim of this article is to present the conditions of admissibility of state aidin the European Union, with particular emphasis on horizontal aid for environmentalprotection. State aid measures can correct market failures and therebycontribute towards achieving common objectives. It should be targeted towardssituations where aid can bring a material improvement that the market cannotdeliver alone. The EU Member States intending to grant environmental or energyaid have to define precisely the objective pursued and explain what is the expectedcontribution of the measure towards this objective.


2020 ◽  
Vol 8 (1) ◽  
pp. 111-137
Author(s):  
Rustam Kasyanov ◽  
Anzhelika Kriger

The article covers key formats of interstate cooperation in the post-Soviet space. The authors conclude that the Eurasian Economic Union is the major integration project bringing together Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. This research addresses various legal issues related to founding of the EAEU single financial services market with provisions and annexes of the EAEU Treaty studied. The EAEU meets challenges and creates legal and institutional framework for single financial services market within a relatively short timeframe. By 2025 both Supranational Eurasian financial regulator should be established and EAEU legislation on financial services should be harmonized. These tasks require international and national regulation experience. Therefore through the use of comparative analysis some advantages of the European Union law in the field of financial services market regulation are pointed out alongside with particular national legislation aspects of the EAEU member states in the similar or relative fields. Comparative analysis provides for determination of modern approaches to financial services market regulation in the EAEU and its member states, and allows to emphasize advantages and disadvantages of such regulation. Comparative analysis is applied to specifically investigate three subject areas of high relevance for global financial community: institutional forms of trade in financial instruments; organized trade in financial derivatives; organization of algorithmic and high-frequency algorithmic trading. Conclusion drawn is that the EU experience in the matters of financial markets regulation is of particular interest for the EAEU and its member states.


Author(s):  
Piotr Podsiadło

The paper discusses guidelines for implementation of art. 107-109 of the Treaty on the Functioning of the European Union, from the point of view of state aid for training. Training usually generates positive externalities for society as a whole, since it increases the pool of skilled workers from which other firms may draw, improves the competitiveness of the EU industry and plays an important role in the EU employment strategy. Statistical analysis was carried out on state aid granted by the EU Member States in the period 2001-2014 - from the perspective of its impact on competitiveness of these countries. This should lead to verification of thesis that the amount of state aid granted by the EU Member States for training, should positively correlate with the size of the GDP per capita of these countries


Author(s):  
Sandra Marco Colino

Competition law in the EU also exerts some degree of control over the actions of the Member States when they intervene in the market in ways which could harm the competitive process. The Member States commit to complying with these and other obligations the moment they agree to be bound by the acquis unionaire, which is a prerequisite for EU membership. There are two main provisions in this regard: Articles 106 and 107 TFEU. This chapter covers the basic principles underlying the application of Articles 106 and 107 TFEU, and explores the interplay between the general prohibitions they contain and their multiple exceptions. Article 106 ensures that undertakings owned, established, or regulated by the State are not protected or advantaged vis-à-vis private competitors, while Article 107 TFEU contains a general prohibition of state aid.


2021 ◽  
Vol 11 (2) ◽  
pp. 102-129
Author(s):  
Pawan Kumar Dutt ◽  
Katrin Nyman-Metcalf

Abstract The research problem of this article focuses on how the public support system in Estonia can help small and medium-sized enterprises (SMEs) to acquire and commercialise their intellectual property rights (IPR) in a sustainable and legally permissible manner. The study aims to analyse and determine which specific public support measures are needed by SMEs for acquiring and commercialising IPR and how to design such public support within the legal boundaries set under European Union (EU) laws. The theoretical framework used in this study is built around the social system as defined by Parsons. The 4S Model (based on scope, scale, skill and social networking) derived by researchers from the said social system is considered. Further, 19 key attributes were devised by the authors in conjunction with the role of motivation to form a revised framework. The analysis employs qualitative research methods. To apply the framework of social systems theory, the authors used semi-structured interviews as a method to study the public support measures required by Estonian stakeholders. This was also analysed in the framework of EU State aid law, which poses both restrictions and exemptions. This research presents several desired support measures. Although the public support systems for acquiring and commercialising IPR by SMEs are restrained by legal frameworks within the EU, the analysis of the relevant laws and cases shows that State aid for RDI purposes is legally permissible within the EU, depending on the state’s willingness and availability of funds.


2018 ◽  
pp. 76-95
Author(s):  
Krzysztof Tomaszewski

The article refers to the phenomenon of autonomous vehicles in the transport policy of the European Union. Their use in practice results in the need to implement new solutions in the fields of technology, law, economics and politics. The European Union is taking various steps to prepare the Member States for an autonomous revolution. The aim of the article is to conceptualise the basic problems that can be investigated in the subject matter of autonomous vehicles as well as to analyse the position and strategy of the European Union towards autonomous transport. The article uses the decision method. Among the research findings, it should be pointed out that the EU as an international organisation is open and prepared to address the challenges posed by the implementation of autonomous transport. It takes effective action to coordinate the application of new solutions at the national level (in the Member States) as well as at the transnational level. In this way, the transport sector has the chance to dynamically develop and maintain its prominent position as a key sector of the EU economy. The implementation of innovative transport solutions is a conditio sine qua non for the future of this sector.


2020 ◽  
pp. 79-90
Author(s):  
Renata Przygodzka ◽  

Purpose – The aim of the paper is to identify the directions and instruments of state aid (with the exception of agriculture and the transport sector) used in Poland and to identify their specificities in relation to other countries of the European Union. Research method – The achievement of the above purpose required the use of research methods such as the analysis of legal acts, the collection and analysis of secondary data and the processing of the collected factual material using descriptive statistical methods. The data source was The State Aid Scoreboard, together with a variety of reports from the Office for Competition and Consumer Protection. Results – In 2017, the amount of state aid in Poland was twice as high as the average indicator in the European Union (1.51% and 0.76% respectively). Regional development (27.3%) was the main beneficiary of its allocation, while environmental protection was 55.4% in the EU. A specific feature of state aid in Poland is its sustainability, which does not exist to a similar extent in other Member States. Originality /value – According to the author's knowledge, this is one of the unique research papers devoted to the problem of state aid, especially in the context of the indication of the specific characteristics of state aid in Poland against the background of the countries of the European Union.


Intersections ◽  
2018 ◽  
Vol 3 (4) ◽  
Author(s):  
Zsuzsa Csergő ◽  
Ognen Vangelov ◽  
Balázs Vizi

The question of how governments deal with ethnic diversity is fundamental to the future of peace and democracy in Europe.  The way this question is articulated and addressed has changed significantly, as European governments and social actors respond to problems of regional security, domestic political contestation, and economic well-being.  After the collapse of the Soviet Union in 1991, the collaborative efforts of European organizations – primarily the Council of Europe (CoE), the Organization for Security and Cooperation in Europe (OSCE), and the European Union (EU) – provided a historic opportunity for the development of common European standards about minority inclusion across the whole spectrum of political and economic rights and opportunities available to state majorities.  Europeanization – which involved the deepening of transnational institutional structures in member states, the enlargement of the EU to include an increasing number of countries from the former Soviet bloc, and the diffusion of European norms and practices in the EU and its neighbourhood – had a profound impact on the evolution of state-minority relations across the continent.  Although Europeanization reaches all aspects of life in EU member and aspiring member states, the governance of ethnic diversity has evolved in diverse directions across the continent, rather than gradually converging toward common standards.


Sign in / Sign up

Export Citation Format

Share Document