Tax Subsidies and State Aid in the European Union

Piotr Podsiadło

Abstract


The purpose of this article is to investigate the permissibility, or otherwise, of state aid in the European Union in terms of the premise of economic benefit set out in the TFEU. This should also be seen from the perspective of the type of advantage gained, namely, the kind of state aid as defined by the European Commission using one of four groups of aid instruments. The research thesis was adopted that the financial and economic crisis has affected the structure of aid provided by Member States in such a way as to increase the share of tax subsidies in it. These subsidies involve reducing the burden of public contributions, or ceasing to collect them, so that the funds from these accounts are available to business entities, which means, in turn, that public cash has less of an impact on the public finance sector.

Keywords


state aid, European Union, treaty premises, economic benefit to the beneficiary

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DOI: https://doi.org/10.15678/AOC.2015.1208