The limitations of European Union control of state aid

2012 ◽  
Vol 28 (2) ◽  
pp. 347-367 ◽  
Author(s):  
A. Heimler ◽  
F. Jenny
Keyword(s):  
European Union ◽  
State Aid ◽  
Union Control

scholarly journals Competition Law and State Aid for Failing Banks in the EU and its Specific Implications for CEE Member States

2016 ◽  
Vol 9 (14) ◽  
pp. 145-157
Author(s):  
Virág Blazsek
Keyword(s):  
European Union ◽  
State Aid ◽  
Common Market ◽  
Competition Authority ◽  
The European Union ◽  
Member States ◽  
Positive Effects ◽  
The Stability ◽  
Bank Bailouts ◽  
The Eu

The bank bailouts following the global financial crisis of 2008 have been subject to prior approval of the European Commission (EC), the competition authority of the European Union. The EC was reluctant to reject rescue efforts directed at failing banks and so it consistently approved all such requests submitted by Member States. Out of the top twenty European banks, the EC authorized State aid to at least twelve entities. In this context, the paper outlines the gradually changing interpretation of EU State aid rules, the “temporary and extraordinary rules” introduced starting from late 2008, and the extension of the “no-State aid” category. The above shifts show that the EC itself deflected from relevant EU laws in order to systemically rescue important banks in Europe and restore their financial stability. The paper argues that bank bailouts and bank rescue packages by the State have led to different effects on market structures and consumer welfare in the Eurozone and non-Eurozone areas, mostly the Eastern segments of the European Union. As such, it is argued that they are inconsistent with the European common market. Although the EC tried to minimize the distortion of competition created as a result of the aforementioned case law primarily through the application of the principle of exceptionality and different compensation measures, these efforts have been at least partially unsuccessful. Massive State aid packages, the preferential treatment of the largest, or systemically important, banks through EU State aid mechanisms – almost none of which are Central and Eastern European (CEE) – may have led to the distortion of competition on the common market. That is so mainly because of the prioritization of the stability of the financial sector and the Euro. The paper argues that State aid for failing banks may have had important positive effects in the short run, such as the promotion of the stability of the banking system and the Euro. In the longrun however, it has contributed to the unprecedented sovereign indebtedness in Europe, and contributed to an increased economic and political instability of the EU, particularly in its most vulnerable CEE segment.

Part V Judicial Review before the Court of Justice of the European Union, 2 Direct Actions and Judicial Review before the Union Courts

2016 ◽  
Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter
Keyword(s):  
European Union ◽  
European Commission ◽  
Judicial Review ◽  
Subject Matter ◽  
State Aid ◽  
Access To Justice ◽  
The European Union ◽  
Court Of Justice ◽  
The Subject

This chapter addresses access to justice in the context of centralized enforcement of EU State aid law and judicial review before the Union courts. The subject matter of litigation is State aid measures adopted in particular by the European Commission as the main supervisory body in this field pursuant to Article 108 TFEU. The term ‘access to justice’ is meant to comprise both the various conditions of standing for bringing direct actions against such measures before the General Court (GC), which essentially comprise actions for annulment (Article 263 TFEU), actions for failure to act (Article 265 TFEU), and actions for damages (Article 268 in combination with Article 340(2) TFEU). The chapter also looks at the nature and the types of acts that are possibly subject to judicial review before the GC.

Part V Judicial Review before the Court of Justice of the European Union, 3 Decentralized Judicial Review and Enforcement of EU State Aid Rules

2016 ◽  
Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter
Keyword(s):  
European Union ◽  
Judicial Review ◽  
State Aid ◽  
Common Market ◽  
Final Decision ◽  
The European Union ◽  
Member States ◽  
National Courts ◽  
Court Of Justice ◽  
The Common

This chapter assesses the enforcement of EU State aid rules. The Commission is not the only authority involved in the monitoring of State aid. As regards the supervision of Member States' compliance with their obligations under Articles 107 and 108 TFEU, the national courts also have an important role to play. The implementation of that system of control is a matter for both the Commission and the national courts, their respective roles being complementary but separate. Whilst assessment of the compatibility of aid measures with the common market falls within the exclusive competence of the Commission, subject to review by the Courts of the European Union, it is for national courts to ensure the safeguarding, until the final decision of the Commission, of the rights of individuals faced with a possible breach by State authorities of the prohibition laid down by Article 108(3) TFEU.

Sign in / Sign up

Export Citation Format

Share Document