The Correlation between State Aids and Competitiveness

Abstract

This paper aims to establish the correlation between state aids received by companies and competitiveness, because an enterprise which receives a subsidy provided by a government has an advantage over other firms and competition may be distorted. State aid is an advantage conferred by national public authorities under certain conditions and for certain areas of activity. The E.U. rules for state aids are ensuring applied equally by European Commission, so state aids can be applied after approval by the Commission. But in some circumstances government interventions are necessary for an equitable economy. Measures of state aids can be implemented only if were approved by the European Commission.

Keywords

• state aid; correlation; competitors; european commission