ECONOMIC ANALYSIS OF STATE AID CONTROL IN THE EUROPEAN UNION

Abstract

State aid control is a cornerstone of the European Union's competition policy, aimed at preventing member states from granting advantages to specific companies or industries that could distort competition and affect trade within the internal market. This paper provides an in-depth economic analysis of state aid control in the EU, discussing its effectiveness, challenges, and implications for market dynamics and economic efficiency. Through a comprehensive review of the literature and analysis of current practices, this research highlights the delicate balance required between allowing government intervention for economic development and preventing unfair competitive advantages. The study also explores the role of state aid control during economic crises and its impact on economic integration and public spending efficiency. The insights from this analysis aim to inform future policy development and enhance the understanding of state aid control's role in the EU's economic governance.