State Aid and Obstacles to Trade

Abstract

This chapter provides the debate on the evolution and development of State aid policy, by looking at its intercourse with the free movement side of the internal market. It looks at three dimensions. First is a discussion of the policy rationales of the law on free movement and of State aid law. One may term this the political economy of the two systems. Second is the delineation of free movement and State aid law, as determined in the case law. The third topic relates to the policy justification for what would otherwise be illegal measures. In addition, it examines the question linked to the definition of a State aid, its delineation with free movement law, and relevant justification analysis. In general, this chapter probably invokes more questions than it manages to answer. The analysis in any event exhibits that the association between State aid law and general internal market law merits additional analysis and reflection.