A Question of State Aid for Sectoral Development in the EU
A Question of State Aid for Sectoral Development in the EU

Author(s): Piotr Podsiadło
Subject(s): Economic history, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment
Published by: Masarykova univerzita nakladatelství
Keywords: economic growth; enterprises; the European Union; sectoral development; State aid;
Summary/Abstract: The article presents the conditions of admissibility of State aid in the European Union, taking into account the rules applicable to the sectoral aid for enterprises. Pursuant to Article 107 par. 3 (c) of the Treaty on the Functioning of the European Union (TFEU), State aid may be compatible with the internal market in so far as it is intended to facilitate the development of certain economic activities. Thus, aid that is determined according to sectoral criteria may be permissible where this leads to the development of that sector. While many aid schemes are sectoral in nature, the European Commission has not sought to develop a sectoral approach in the development of its State aid policy. In general, the main state aid policy instruments governing horizontal aid, such as the guidelines on regional State aid or the guidelines on environmental protection, draw no distinction between different sectors, other than to restrict their application in certain circumstances. Nevertheless, certain sectors have been subjected to different treatment under the State aid rules. In particular, sectors that suffered from over-capacity, such as motor vehicles, synthetic fibres and textiles were subject to individual treatment by the Commission. The article offers an analysis of State aid granted by EU Member States is carried out under the provisions of the Treaty on the functioning of the European Union and the rules of State aid admissibility on the basis of the implementing sectoral regulations. The analysis made it possible to verify the influence of State aid on economic growth in EU Member States, which provided State aid for sectoral development in the years 2000-2017. The analysis was based on a linear regression model. The response variable (dependent variable Y) is the size of the GDP, while the explanatory variable (independent variable X) is the expenditure on State aid for sectoral development.

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