Abstract
This article intends to launch a discussion on the possibilities of introducing more sustainability into the rules on granting State aid. State aid law constitutes a crucial part of the internal market regulation. In principle, granting public support to companies is prohibited in the European Union (EU) as such state intervention distorts competition. In some cases, however, aid may be allowed if it pursues a legitimate public policy objective such as research, regional development, transport or environmental protection. In 2017, the EU Member States spent EUR 116.2 billion, i.e., 0.76% of GDP, on State aid at the EU level. While aid to the environment and energy saving promotes sustainability, the question is whether other types of aid also do so. This article provides a brief explanation of the rationale behind State aid control, explains how ‘good aid’ may be approved by the European Commission or EFTA Surveillance Authority (ESA) before it is granted by the Member States and proposes taking a closer look at the current guidelines for granting aid in the transport sector. This sector has a serious impact on the environment and human well-being, while it is heavily subsidised by the state.
Highlights
In 2019, it is hardly necessary to argue that economic growth must be sustainable
The importance of State aid law and policy may be demonstrated by the size of public support that qualifies as ‘aid’ under the Treaty on the Functioning of the European Union (TFEU) and by referring to public policy goals that are pursued by granting aid [13]
[76] In order to promote the transition to renewable energy sources Germany had amongst others implemented a scheme to support undertakings producing electricity from renewable energy sources and mine gas that was recently reviewed by the Court of Justice of European Union
Summary
In 2019, it is hardly necessary to argue that economic growth must be sustainable. In this respect, sustainability is understood as securing the social foundation for people everywhere both and in the future, while staying within planetary boundaries [1]. As there exist numerous barriers, gaps, and incoherencies that prevent market actors from contributing to sustainability, the necessary transition towards sustainable growth requires an immense and coordinated effort from both the international institutions, national authorities, companies, and consumers [2] In this respect, the EU is in a unique position due to its impact on both the Member States and companies through the legal framework of the internal market. The Commission or ESA must approve aid before it is granted by the Member States This process is, governed by different procedures depending on the type of public support and its impact on the internal market. When arguing in favour of promoting more sustainability, references are made to relevant law and EU policy documents, and to scientific studies and literature that provide data on the environmental impact of transport
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