By: Pablo Ibañez Colomo (Chilling Competition)
The European Union (EU) was founded in response to the post-war reconstruction of Europe and to prevent future conflicts. Since then, the EU has faced and overcome numerous crises, including the financial and Eurozone debt crisis, migration crisis, Brexit, the Covid-19 health and economic crisis, and the crisis sparked by the Russian invasion of Ukraine. However, the EU’s response to these crises has also exposed its weaknesses, tensions, and limitations. One area that has been particularly vulnerable to tensions is that of State aid, which sets limits on Member State sovereignty and expenditure to ensure a level playing field in the internal market.
The very nature of State aid law makes it a field ripe for tensions between Member States, between law and politics, and between conflicting public policy objectives. These tensions are further exacerbated in times of crisis. In March 2020, an op-ed by José Luis Buendía and another author warned about the risk that “full flexibility” would distort competition between Member States, favoring those with deeper pockets. To mitigate this risk, they proposed the creation of a “Solidarity Fund,” to which Member States would contribute a percentage of the public resources involved in their own measures.
Almost three years later, the risk of distorting competition between Member States has proved very real. The EU’s response to the Covid-19 pandemic has highlighted the need for a coordinated and solidarity-based approach to State aid, as some Member States have been better equipped than others to provide financial support to their economies. The proposed Solidarity Fund could help alleviate these disparities and ensure a level playing field for all Member States.
The EU has been built through crises, and the solutions to those crises have strengthened its foundations. However, each crisis has also exposed the EU’s weaknesses and limitations. The State aid discipline is one area that has been particularly vulnerable to tensions, and the proposed Solidarity Fund could help mitigate those tensions and ensure a level playing field for all Member States. As global warming and geopolitical tensions continue to loom on the horizon, the need for a coordinated and solidarity-based approach to State aid will become increasingly pressing…
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI