State aid for employment and competitiveness of the European Union countries - a legal and finance approach

Abstract

Due to the imperfect functioning of labour markets in certain cases, State aid may be an appropriate instrument for creating new jobs and preserving existing ones. Legal regulation of the issue of State aid is an element of the competition mechanism protection, which was recognized in the Treaty on the Functioning of the European Union (TFEU). This paper discusses guidelines for implementation of art. 107–109 of the TFEU, from the point of view of State aid for employment. Statistical analysis was carried out on State aid granted by EU Member States in the period 2001–2018 – from the perspective of its impact on competitiveness of these countries. This should lead to verify the thesis that the amount of State aid granted by EU Member States for employment should be positively correlated with the size of the GDP per capita of these countries.