State Aid Policy in the European Community

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This comprehensive guide reviews the current state aid policy of the European Community following the completion of the European Commission's State Aid Action Plan. It outlines the evolving landscape of state aid, noting that certain types are now prohibited, while others are permitted under stricter assessments. Member States increasingly focus on horizontal policy objectives rather than supporting individual companies or sectors. The text explains the principles of European state aid policy, its practical application, and highlights recent legislation aimed at aligning Member States with the Lisbon objectives and the European Council's calls for "less and better targeted aid." The authors examine recent EC law sources, landmark European Commission decisions, and EU Court rulings, providing guidance on designing state aid measures. Key topics include the compatibility balancing test with the common market, exceptions for transport and "services of general economic interest," the Commission's supervisory control, and monitoring procedures. The guide features case studies and appendices with legislative texts and insights into areas such as de minimis aid, SME definitions, risk capital for SMEs, and aid for research, development, and various sectors. Developed from EIPA seminars on EC state aid law, this book serves as a valuable resource for policymakers and practitioners managing state aid in public administrations across EC