State aid modernization and its implications for the assessment of large investment projects : the relevance of market screens in the regional aid guidelines
Hans W. Friederiszick; Nicola Tosini
The Regional Aid Guidelines foresee specific screens for an in-depth assessment of Large Investment Projects (LIPs): an in-depth assessment is initiated if the market share of the aid beneficiary is above 25% or the investment results in a capacity expansion above 5% in a declining market. It is currently being discussed within the broader State Aid Modernization package and also due to a recent court ruling on the case Propapier whether these market screens should stay as they are. Based on a dataset of all LIP cases notified under the 2006 Regional Aid Guidelines, we evaluate those market screens and find that the screens do have power to identify problematic cases - cases with a below average expected aid effectiveness and aid measures targeting specific industries. We also find, however, that the market screens are affected by a severe implementation problem and, hence, do not help to shorten phase I investigations. From a conceptual perspective, they are also not capable of identifying some of the potentially most problematic regional State aid cases. Policy options are discussed.
Year of publication: |
2012
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Authors: | Friederiszick, Hans ; Tosini, Nicola |
Publisher: |
Berlin : European School of Management and Technology |
Subject: | competition policy, regional state aid, subsidies, anti-competitive effects | regional state aid | subsidies | anti-competitive effects | Subvention | Subsidy | Wettbewerbspolitik | Competition policy | EU-Staaten | EU countries | Regionalpolitik | Regional policy | EU-Regionalpolitik | EU regional policy | EU-Beihilferecht | European state aid law | Entwicklungshilfe | Development aid |
Saved in:
freely available
Extent: | Online-Ressource (PDF-Datei: 25 S., 529 KB) |
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Series: | ESMT working paper. - Berlin : [Verlag nicht ermittelbar], ISSN 1866-3494, ZDB-ID 2499418-2. - Vol. 12-05 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Notes: | Systemvoraussetzungen: Acrobat reader |
Other identifiers: | hdl:10419/96591 [Handle] |
Classification: | H81 - Governmental Loans, Loan Guarantees, and Credits ; L4 - Antitrust Policy ; O25 - Industrial Policy ; R58 - Regional Development Policy |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10009742117