State Aid Control in the European Union

Abstract

European Union aims to establish an Internal Market, where the factors of production move freely and the competition among the producers is maintained. One of the obstacles before the free movement is the provision of state aids by the member states to their own producers. State aids strengthen the competitiveness of the producers and therefore influence the trade among the other member states. In order to control the state aids and therefore to ensure the proper functioning of the Internal Market, a mechanism which consists of Commission, Court of Justice of the European Union and the national courts, has been established. That mechanism aims to achieve a balance between the aim to maintain the competition and the aim to economical developement.