State Aid Reform (Communication)

The Commission wishes to reform State aid law and in particular re-target it as to better promote economic growth in Member States. This serves the purpose of implementing the growth strategy “Europe 2020” and of supporting Member States in consolidating their public budgets through a re-targeted State aid approach.

cepPolicyBrief

With its reform, the Commission is exploiting State aid control in order to steer the economic policies of Member States according to its own ideas. It is to be expected that the Commission will mitigate the efficiency requirements regarding State aid in order to in turn improve the chances of achieving the “Europe 2020” targets. The proposal to consolidate budgets by growth-inducing expenditure regularly failed in the past.