State Aid in the Visegrad Countries: Similarities and Differences

Authors

  • Gábor Potvorszki University of Miskolc

DOI:

https://doi.org/10.18096/TMP.2018.02.05

Keywords:

State aid, economic growth, territorial analysis, Visegrad countries

Abstract

This study focuses on the characteristics of those grants that are clearly for the purpose of carrying out economic activities. By giving an overview about the very specific nature of State aid rules in the European Union determining the level playing field, a Member State can grant subsidies. The main aim of this article is to identify whether there can be significant similarities and differences across the Visegrad countries, namely the Czech Republic, Hungary, Poland and Slovakia. As we are facing the next programming period of 2021–2027 it is crucial from the point of view of what can be learned about the current period and, perhaps, what should be changed.

Author Biography

Gábor Potvorszki, University of Miskolc

Assistant Professor

References

ARISTEI, D. – STERLACCHINI, A. – VENTURINI, F. (2015): The effects of public supports on business R&D: firmlevel evidence across EU countries. Munich Personal RePEc Archive, p. 36. Retrieved on 24 October 2018. Available at http://mpra.ub.uni-muenchen.de/64611/1/MPRA_paper_64611.pdf

BRONZINI, R. – PISELLI, P. (2014): The impact of R&D subsidies on firm innovation. Banca d’Italia. p. 49. Retrieved on 24 October 2018. Available at http://www.bancaditalia.it/pubblicazioni/temi-discussione/2014/2014-0960/en_tema_960.pdf

BUSILLO, F. – MUCCIGROSSO, T. – PELLEGRINI, G. – TAROLA, O. – TERRIBILE, F. (2010): Measuring the Impact of the European Regional Policy on Economic Growth: a Regression Discontinuity Design Approach. Working Papers 6/10, Sapienza University of Rome. Retrieved on 25 October 2018. Available at http://www.diss.uniroma1.it/sites/default/files/allegati/wp-06-10-RDD_wp_18%2001%2010_Final_Version2.pdf

CERQUA, A. – PELLEGRINI, G. (2011): Are the subsidies to private capital useful? A Multiple Regression Discontinuity Design Approach. ERSA conference papers, European Regional Science Association. Retrieved on 26 October 2018. Available at http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01323.pdf

COLLIE, D. R. (2000): State aid in the Europen Union: The prohibition of subsidies in an integrated market. International Journal of Industrial Organization, Volume 18, Issue 6, August 2000, pp. 867-884.

COMBES, P. P. – VAN YPERSELE, T. (2012): The role and effectiveness of regional investment aid. The point of view of the academic literature. European Commission.

CRISCUOLO, C. – MARTIN, R. – OVERMAN, H. – VAN REENEN, J. (2012): The Causal Effects of an Industrial Policy. Centre for Economic Performance, London School of Economics for recent research on the effectiveness of the Regional Selective Assistance (RSA) program in the UK. NBER Working Paper No. 17842. Retrieved on 25

October 2018. Available at http://www.nber.org/papers/w17842.pdf

DGC (2017): State Aid Scoreboard 2017. Retrieved on 1 October 2018. Available at http://ec.europa.eu/competition/state_aid/scoreboard/index_en.html

DGC (2018a): Report on Competition Policy 2017. COM(2018) 482 final. Directorate-General for Competition, European Commission. 2018. Retrieved on 18 October 2018. Available at http://ec.europa.eu/competition/publications/annual_report/2017/part1_en.pdf

DGC (2018b): Report on Competition Policy 2017. p. 94. Commission Staff Working Document SWD(2018) 349 final. DG Competition. Retrieved on 18 October 2018. Available at http://ec.europa.eu/competition/publications/annual_report/2017/part2_en.pdf

EINIÖ, E. (2014): R&D Subsidies and Company Performance: Evidence from Geographic Variation in Government Funding Based on the ERDF Population-Density Rule. The Review of Economics and Statistics. Vol. 96, No. 4, pp. 710-728.

EU (2008): Consolidated version of the Treaty on the Functioning of the European Union. Official Journal 115., 09/05/2008 P. 0091 – 0092. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:12012E/TXT

EUROPEAN COMMISSION (2010): Europe 2020: A Strategy For Smart, Sustainable And Inclusive Growth, COM(2010) 2020 final. Retrieved on 16 October 2018. Available at https://eur-lex.europa.eu/legalcontent/EN/TXT/?qid=1427303331326&uri=CELEX:52010DC2020

EUROPEAN COMMISSION (2012): EU State Aid Modernisation (SAM). Communication from the Commission to the European Parliament, The Council, the European Economic and Social Committee and the Committee of the Regions. COM(2012) 209 final. Brussels, 8.5.2012. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:52012DC0209&from=EN

EUROPEAN COMMISSION (2013a): Commission Regulation (EU) No 1407/2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. OJ L 352/1., 24.12.2013. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv: OJ.L_.2013.352.01.0001.01.ENG

EUROPEAN COMMISSION (2013b): Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006. OJ L 347, 20.12.2013, p. 320–469. Retrieved on 15 October 2018. Available at https://eurlex. europa.eu/legal-content/EN/TXT/?qid=1547211903799&uri=CELEX:32013R1303

EUROPEAN COMMISSION (2014): Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty. OJ L 187/1., 26.6.2014. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legalcontent/

EN/TXT/?qid=1539854608241&uri=CELEX:32014R0651

EUROPEAN COMMISSION (2016): Commission Notice on the notion of State aid as referred to in Article 107(1) of the Treaty on the Functioning of the European Union. OJ 2016/C, 262/01. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52016XC0719(05)

EUROPEAN COMMISSION (2017a): Commission Regulation (EU) 2017/1084 of 14 June 2017 amending Regulation (EU) No 651/2014 as regards aid for port and airport infrastructure, notification thresholds for aid for culture and heritage conservation and for aid for sport and multifunctional recreational infrastructures, and regional operating aid schemes for outermost regions and amending Regulation (EU) No 702/2014 as regards the calculation of eligible costs. OJ L 156/1., 20.6.2017. Retrieved on 15 October 2018. Available at https://eur-lex.europa.eu/legalcontent/EN/TXT/?qid=1497952641554&uri=CELEX:32017R1084

EUROPEAN COMMISSION (2017b): My Region, My Europe, Our Future: Seventh report on economic, social and territorial cohesion. 2017. p. 249. Retrieved on 25 October 2018. Available at http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion7/7cr.pdf

EUROPEAN COMMISSION (2017c): Statement by Commissioner Vestager - Commission simplifies rules for public investment in ports and airports, culture and the outermost regions. Statement 17/1367. Retrieved on 5 October 2018. Available at http://europa.eu/rapid/press-release_STATEMENT-17-1367_en.htm

EUROPEAN COMMISSION (2017d): The future of Europe. Reflections and scenarios for the EU27 by 2025. White Paper. p. 32. DOI:10.2775/32364I. SBN: 978-92-79-66241-6. Retrieved on 17 October 2018. Available at https://ec.europa.eu/commission/sites/beta-political/files/white_paper_on_the_future_of_europe_en.pdf

EUROPEAN COURT (2011): Annual report on the implementation of the Budget. OJ C 326/01. European Court of Auditors. Retrieved on 19 October 2018. Available at

http://www.europarl.europa.eu/document/activities/cont/201111/20111110ATT31133/20111110ATT31133EN.pdf

FINGLETON, J. – RUANE, F. – RYAN, V. (1999): Market definition and State aid control. In: Meiklejohn, R. (ed): State aid and the Single Market. European Economy, Reports and Studies No 3, European Commission, Brussels.

FRIEDMAN, M. (1962): Capitalism and freedom. University of Chicago Press, Chicago.

FRIEDERISZICK, H. W. – RÖLLER, H. L. – VEROUDEN, V. (2006): European State Aid Control: an economic framework. p. 60. Retrieved on 29 October 2018. Available at

http://ec.europa.eu/economy_finance/publications/publication9549_en.pdf

HAUCAP, J. – SCHWALBE, U. (2011): Economic Principles of State Aid Control. Düsseldorf Institute Competition Economics. p. 53. Düsseldorf, Germany. Retrieved on 30 October 2018. Available at http://www.dice.hhu.de/fileadmin/redaktion/Fakultaeten/Wirtschaftswissenschaftliche_Fakultaet/DICE/Discussion_ Paper/017_Haucap_Schwalbe.pdf

KEYNES (1936): The General Theory of Employment, Interest and Money. p. 472. Palgrave Macmillan, United Kingdom.

KORNAI, J. (1982): A hiány. p. 610. Közgazdasági és Jogi Kiadó, Budapest.

KRUGMAN, P. R. (1991): Geography and Trade. MIT Press, Cambridge, Massachusetts.

KRUGMAN P. R. (1994): Competitiveness: A dangerous Obsession. Foreign Affairs 73(2) pp. 24-45.

LE DEN, X. – KRÖBER, R. – PEZZA, A. R. – GILLERKE, F. – BRESSER, L. – KRÄMER, M. – KHAN, U. – OLIVAS, J. (2012): Ex-post evaluation of regional aid guidelines 2007-2013. Final Report. p. 207. European Commission, DG Competition, 2013.

MARSHALL, A. (1890): Principles of economics. Eighth Edition. Edited by Groenewegen, P. p. 759. Palgrave Classics in Economics. Palgrave Macmillan. Sydney, 2013. Retrieved on 31 October 2018. Available at http://www.library.fa.ru/files/Marshall-Principles.pdf

MARTINI, A. – BONDONIO, D. (2012): Support to SMEs and large enterprises in Italy, including a comparison of grants and other financial instruments. Retrieved on 25 October 2018. Available at http://ec.europa.eu/regional_policy/information/evaluations/impact_evaluation_en.cfm#1

MEIKLEJOHN, R. (1999): The economics of State Aid. European Economy, Special Issue on "State Aid and the Single Market", 3, 25-31.

MOUQUÉ, D. (2012): What are counterfactual impact evaluations teaching us about enterprise and innovation support? DG for Regional and Urban Policy, Evaluation and Semester Unit. p. 16. Retrieved on 25 October 2018. Available at http://ec.europa.eu/regional_policy/sources/docgener/focus/2012_02_counterfactual.pdf

OWCZARCZUK, M. (2013): Government Incentives and FDI into R&D. The Case of Visegrad Countries. Entrepreneurial Business and Economics Review, 1(2), pp. 73‐86. Retrieved on 8 October 2018. Available at https://eber.uek.krakow.pl/index.php/eber/article/download/14/14

PIKETTY, T. (2013): A tőke a 21. században. Translated by Balogh-Sárközy, Zs. p. 800. Kossuth Kiadó, Budapest, 2015.

PISÁR, P. – ŠIPIKÁL, M. – LABUDOVÁ, V. (2013): Are subsudues really needed? The case of European Regional Policy in the Czech and Slovak Republics. E+M Ekonomie a Management/ E+M Economics & Management. Vol. 2013 Issue 4., pp. 30-41.

SMITH, A (1776): Enquiry into the Nature and Causes of the Wealth of Nations. Nemzetek gazdagsága. Translated by Bilek, R. p. 372. Közgazdasági és Jogi Könyvkiadó, Budapest, 1992.

WALRAS, L. (1872): Elements of Pure Economics, or The Theory of Social Wealth. p. 620. Orion Editions, 1984.

Downloads

Published

2018-12-15

How to Cite

Potvorszki, G. . (2018). State Aid in the Visegrad Countries: Similarities and Differences. Theory, Methodology, Practice - Review of Business and Management, 14(02), 57–70. https://doi.org/10.18096/TMP.2018.02.05