STATE AID AND COMPETITION POLICY IN THE EUROPEAN UNION IN THE PERIOD OF ECONOMIC CRISIS

Abstract

The global economic crisis has caused the need for the state involvement in process of rescuing before the bankruptcy of many economic entities, initially in the financial sector, and then, at a later stage of the crisis, also in the real economy. In the European Union action takes the form of state aid, which is strongly regulated because it means benefits for its beneficiaries, and therefore violates the rules of market competition. Therefore, the provision of state aid is controversial because it potentially affects adversely competition policy pursued in the EU. The purpose of this article is to analyze and assess the impact of the state aid on competition policy in the EU in the times of economic crisis.

Keywords

• financial sector
• real economy
• crisis state aid