A Brief Note On The United States State Aid

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tate Aid is an important policy which is used to solve ‘market failure’, it is an important system which is widely used in EU countries. Nowadays state aid is an integral part of competition policy and the European Commission is in the core of control ling aid. State Aid is usually defined as advantages given by the State to some special companies or industry. State aid control is a comprehensive system, the supranational institution such as Commission and national institution such as national courts constitute the complex system together. As for national control,the independent national state aid authorities has been established now. However, it is difficult to distinguish the allocation of competences between the Commission and the…show more content…
Save as otherwise provided in the Treaties, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market.’[1 Consolidated version of the Treaty on the Functioning of the European Union - PART THREE: UNION POLICIES AND INTERNAL ACTIONS - TITLE VII: COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS - Chapter 1: Rules on competition - Section 2: Aids granted by States - Article 107 (ex Article 87 TEC) ]This is the basic provisions of the EU state aid,but the provisions does not explicitly reveal what state aid is,just simply stated what is prohibited by EU.The most direct definition of state aid in official documents appeared in the judgment of the case BergmsPraemien’[2 ].in accordance with Article 87,European Court of Justice stated that State aid is a national measures to reduce the variety of business under normal circumstances a burden to bear.[3 ]European Court of Justice gave a definition of state aid from a negative point of view.At the same time, some key points of the definition can also be found in Commission of the European Communities v Portuguese Republic[ C-404/97. ECR 2000 Page I-04897,para.44], Government of the French Republic v
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