Advances in Management and Applied Economics

The Economic Dimension of State aid in the Light of European Union Law

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• Abstract

   

  The protection of the European market and, by extension, of competition itself, as a prerequisite for ensuring the proper functioning of the open market economy, contribute to the reduction of the prices of products and services provided, to the widening of consumer choice and to the strengthening of technological innovation. All these harmonized aim at the sustainable development of Europe based on balanced growth and price stability, the social market economy with a high degree of competitiveness as provided for in Article 3(3) of the Treaty. The institution of State aid plays an extremely important role in the construction of Europe as it aims to strengthen the economic and social cohesion of the Union to promote a project of common interest or to contribute to the balanced development of a sector or a region within a Community framework (article 107 par. 3 par. a', b', c') while at the same time the existing legislative framework ensures the avoidance of state interventions that may distort competition.

   

  Keywords: European Union Law, State Aid.