State aid in the European Union : an overview, 1999-2009

Despite the increased interest in government measures designed to contain the negative consequences of economic downturns, state aid policy remains an under researched area in comparative political economy. We provide an overview of the 6460 applications to grant state aid processed by the European Commission and adopted by the member states of the European Union between 1999 and 2009. We discuss the intensity and frequency of state intervention, its main beneficiaries, its objectives and instruments, the decisions and the patterns of delay and compliance of the EU policy on state aid control. We illustrate the differences in the patterns of intervention in the domestic economy and of compliance with EU law across countries and across time. Although most of the measures concern old member states, new members intervene more intensively and are more compliant with EU law. Additionally, we highlight how the recent crisis has had significant consequences for the intensity of intervention, its main beneficiaries, its objectives and the decision-making process of this policy.