EIRP Proceedings, Vol 13 (2018)

The Correlation between State Aids and Competitiveness

Rodica Pripoaie

Abstract


This paper aims to establish the correlation between state aids received by companies andcompetitiveness, because an enterprise which receives a subsidy provided by a government has an advantageover other firms and competition may be distorted. State aid is an advantage conferred by national publicauthorities under certain conditions and for certain areas of activity. The E.U. rules for state aids are ensuringapplied equally by European Commission, so state aids can be applied after approval by the Commission. Butin some circumstances government interventions are necessary for an equitable economy. Measures of stateaids can be implemented only if were approved by the European Commission.

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