State Aid and Competitiveness of European Union Economies - Legal and Economic Approach
State Aid and Competitiveness of European Union Economies - Legal and Economic Approach

Author(s): Piotr Podsiadło
Subject(s): Economic development, EU-Accession / EU-DEvelopment, EU-Legislation
Published by: Masarykova univerzita nakladatelství
Keywords: State aid; European Union; development strategies; economies; competitiveness;
Summary/Abstract: The Lisbon strategy and the Europe 2020 strategy pointed to the need for a series of reforms to ensure economic growth, while stressing the creation of conditions for the competitiveness of enterprises. An important determinant of economic growth is the development of enterprises and entrepreneurship. When considering the impact of enterprise size on its competitiveness, it can be stated that small and mediumsized enterprises play a key role in the development of entrepreneurship. An important factor that, on the one hand, can contribute to the development of small and medium-sized enterprises and the elimination of barriers related to their activities, and on the other can be conducive to regulating the market mechanism, is the system of State intervention, within which State aid can be distinguished. In the single European market, where free competition is the regulator of all on-going processes, there is a rule that State intervention is permissible if the market alone cannot solve certain problems. According to the claims of welfare economics, when there are no premises for market failure, the domain of the State should be only redistribution of income, since the operation of a free-competitive market will ensure efficient allocation of resources. The purpose of the article is to present the issue of competitiveness of the economy, based on the competitiveness of enterprises, from the perspective of solutions adopted as part of the European Union's development strategies in relation to State aid.

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