Birnstiel, Alexander; Heinrich, Helge --- "State Aid in the Accession States" [2011] ELECD 699; in Szyszczak, Erika (ed), "Research Handbook on European State Aid Law" (Edward Elgar Publishing, 2011)

Book Title: Research Handbook on European State Aid Law

Editor(s): Szyszczak, Erika

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849802741

Section: Chapter 3

Section Title: State Aid in the Accession States

Author(s): Birnstiel, Alexander; Heinrich, Helge

Number of pages: 20

Extract:

3 State aid in the accession States
Alexander Birnstiel and Helge Heinrich


I. INTRODUCTION
As the title of this chapter indicates, the chapter is intended to give an
overview of State aid in the so called `accession States'. The term `acces-
sion States' refers to European States which either have already become
EU Member States during one of the last EU enlargement rounds (the so
called new Member States) or which have applied for EU membership and
have been granted the status of a candidate State.
Accession States are obliged to incorporate the acquis communautaire
into their legal system. This obligation applies also to State subsidies and
the underlying State aid policy which must comply with the EU State aid
framework from the accession date. It may not be expected that most of
the measures involving State aid in accession countries can be aligned with
the State aid acquis from day one. The accession of new Member States
always involves the considerable risk that State aid incompatible with the
State aid acquis significantly hampers competition in the common/internal
market.
In order to avoid such a scenario, it is obvious that a system needs to
be developed and applied which allows for a smooth transition from State
subsidies in the pre-accession period to State aid compatible with the
common/internal market in the post-accession period. This mechanism
must entail a fair balancing of the legitimate interests of the EU with
regard to safeguarding an undistorted competition in the ...