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State Aid Policy in the European Community

State Aid Policy in the European Community

A Guide for Practitioners

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As full market integration in the EC comes into clearer perspective, the danger of distortions of competition become more evident. Although state aid may be provided to undertakings for a variety of reasons that may be considered to be beneficial to the economy, effective liberalisation may be undermined by state interventions, which weaken competition and prevent the achievement of market integration. State aid is thus considered to be in principle incompatible with the common market, although the well-known qualifications in Article 87 EC imply that certain exceptions are possible.This guide...