Getting State Aid Approved by the European Commission: Explaining the Duration of Preliminary Investigations in the State Aid Notification Procedure*

Abstract

This article aims to explain the variation in duration of preliminary investigations in the state aid notification procedure. While this procedure is guided by objective standards, preliminary investigations result in an overwhelming majority of cases being approved in combination with a large variation in duration. This study explores the explanatory power of political and managerial factors at the member state and state aid case level to account for this variation. Based on multilevel regression analysis of a newly created dataset, results show that both political and managerial factors at the state aid case level affect the duration of preliminary investigations. No evidence was found for member state level factors having an effect.

Neutrality and Equality Aspects in the EU State Aid Temporary Framework 2020: The Case of the Airline Industry

“…Broadly, the EU control processes are carried out in four stages: (1) Notification, (2) Initial decisions, (3) Formal investigation, and (4) Final decision (Finke, 2021). Under the Treaty law, MS governments must notify the EC of their State aid plans for approval before they are implemented, which is considered a "stand-still" obligation (Druenen et al, 2021). After this, if the EC has doubts about the compatibility of the notified State aid measure, it has an obligation to open a formal investigation procedure resulting in approval, conflict or compliance (Finke, 2020).…”

Working with the EU: How Discourses Shape the Application of EU State Aid Rules

“…Kassim and Lyons, 2013; Schito, 2021). So far, it has focused largely on the development of the policy regime (e.g., Akman and Kassim, 2010; Cini, 2001), its impact on the targeting of national state aid policies (Blauberger, 2009b; Botta and Schwellnuss, 2015; Franchino and Mainenti, 2016; Hölscher et al, 2017; Schito, 2021; Zahariadis, 2013) or the role of the Commission (and its interaction with member states) in enforcing the rules (e.g., Alves et al, 2021; Finke, 2020; Smith, 1998; van Druenen and Zwaan, 2022; van Druenen et al, 2022). Less work is done on the practical application of state aid rules in member states (Franchino and Mainenti, 2016; Lindstrom, 2021).…”