European state aid control on state monopolies : its legal, political and social implications

Abstract

State aid can be defined as a beneficial advantage given in any structure or form to a selected local undertaking by the national government. The European Union gives a legal meaning to state aid, which is highlighted in Article 107(1) of the Treaty of the Functioning of the European Union. This term paper will mainly focus on state aid control in the European Union; its meaning, the regulations and policies underlying state aid and how it is regarded as an essential instrument by several governments in aiding local companies. Additionally, this study will expose the legal, social and political implications on state aid, with several cases of the backing up the mentioned implications. Furthermore the research will showcase how state aid can be defined as a financial assistance given by European Member States to undertakings, by analysing material which is centred on the practice of the Court of Justice of the European Union and the European Commission.