Cross-border Competition Handbook 2006/2007
European State Aid Law
European state aid law and policy is undergoing fundamental reform under the State Aid Action Plan, with an increased focus on the use of state aid tools to promote the economic development and competitiveness of Europe. The SAAP provides the overall framework for reform in the European Community. Its modernised, economic approach to state aid analysis has been implemented in new and proposed legislation and in European Commission decisions in individual state aid cases. This new economics-based framework for analysis, which focuses on correcting market failures and balancing the positive effects of an aid measure against any resulting distortion of competition, may require increased involvement from the newly-appointed Chief Economist in the Commission’s Directorate-General for Competition.