Global Journal of Human Social Science, E: Economics, Volume 21 Issue 4

Source: Author’s Calculation based on State Aid Scoreboard, Eurostat Figure 3: State aid per capita (SA, axis x1, blue dots), GDP per capita (Y, axis x2, red dots) and their annual average change ( Δ SA, axis y1 and Δ Y, axis y2) between 2004 and 2019 in the EU As it can be seen (Figure 3) the State aid expenditure per capita varyed between 10 and 485 euros in 2004 whereas the income level between 7,500 and 55,000 euros across the MSs, there can observed that the annual average change in State aid expenditure fluctuated between 0.88% and 1.31% and the increase was relatively higher than the growth in income level (ranged between 0.98% and 1.07%) between 2004 and 2019. It can be assessed that those MSs with a relatively lower State aid expenditure per capita could grow better than those with a relatively higher share. Not as the same in the case of income level: it can not be clearly stated that the poorer MSs could better increase their income level than the richer ones. IV. C onclusions In this article my main intention was on the one hand to reflect on the issue of regulatory system of subsidies in the European Union by giving an overview about the very specific legal nature and environment of State aid. On the other hand dealing with the issue of State intervention both in macro- and microeconomic way I pointed out that there can not be observed significant relationship between the GDP growth rate and State aid expenditure in the EU in the long run. Rather, Member Sates with relatively low share of per capita spending have increased it between 2004 and 2018. Nevertheless, as a whole it can be assessed that the expenditure on State aid has grown faster than the increase in income level. R eferences R éférences R eferencias 1. BUEHLER, C., GARNIER, G., MEIKLEJOHN, R. (2007): The economic analysis of state aid: Some open questions. European Economy, Economic Papers, p. 33. European Commission, Brussels. 2. COMMISSION REGULATION (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty. OJ L 140, 30.4.2004, P. 1-134. 3. 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. 4. FRIEDMAN, M. (1962): Capitalism and freedom. p. 202. University of Chicago Press. 5. GARCIA, J. A., NEVEN, D. (2005): State Aid and Distortion of Competition – A Benchmark Model. HEI Working Paper 06. 6. HUNTINGTON, P. S. (1993): The clash of civilisations. Foreign Affairs; Summer 1993; 72, 3. p. 28. 7. KEYNES (1936): The General Theory of Employment, Interest and Money. p. 427. y = -0.06ln(x) + 1.339 R² = 0.472 y = 7E-11x 2 - 5E-06x + 1.096 R² = 0.733 €0 €10,000 €20,000 €30,000 €40,000 €50,000 €60,000 0.9 0.95 1 1.05 1.1 0.8 0.9 1.0 1.1 1.2 1.3 1.4 €0 €100 €200 €300 €400 €500 €600 Y (2004) ∆ Y ∆ SA SA (2004) Volume XXI Issue IV Version I 22 ( E ) Global Journal of Human Social Science - Year 2021 © 2021 Global Journals State Aid in the European Union: Where Law and Economics Meet