Tuesday , July 7 2020
Home / Alberto Mingardi /Will COVID-19 kill Europe’s state aid discipline?

Will COVID-19 kill Europe’s state aid discipline?

Summary:
My colleague Carlo Stagnaro and I reviewed Thomas Philippon’s The Great Reversal for Law & Liberty. Philippon’s book is ingenious and thought-provoking. The main thesis is that the EU became, as it were, more pro-competitive than the US. One of the pieces of evidence Philippon produces is the European discipline on state aid. National government subsidies to businesses are disciplined by Brussels and that helped in fostering a more competitive environment European-wide. Yet is that going to last? Carlo and I are skeptical. COVID-19 is jeopardizing the genuine pro-market elements in European competition policy. It is not a surprise—and perhaps it may warrant a new chapter in the next edition of The Great Reversal—that member states seized the opportunity of the

Topics:
Alberto Mingardi considers the following as important: , , ,

This could be interesting, too:

Alberto Mingardi writes The Anticapitalist Mentality

Pierre Lemieux writes Flesh & Soul, Economics & Liberal Arts

Frank Holmes writes American Exceptionalism Is Real

SchiffGold writes Gold’s Long Bull Run: SchiffGold Friday Gold Wrap Podcast July 3, 2020

My colleague Carlo Stagnaro and I reviewed Thomas Philippon’s The Great Reversal for Law & Liberty.

Will COVID-19 kill Europe’s state aid discipline?

Philippon’s book is ingenious and thought-provoking. The main thesis is that the EU became, as it were, more pro-competitive than the US. One of the pieces of evidence Philippon produces is the European discipline on state aid. National government subsidies to businesses are disciplined by Brussels and that helped in fostering a more competitive environment European-wide.

Yet is that going to last? Carlo and I are skeptical. COVID-19 is jeopardizing the genuine pro-market elements in European competition policy.

It is not a surprise—and perhaps it may warrant a new chapter in the next edition of The Great Reversal—that member states seized the opportunity of the coronavirus crisis to call for a de facto suspension of the state aid discipline. While the new, more permissive framework is deemed to be “temporary,” only time will tell how long “temporary” measures will last.

Alberto Mingardi
Mingardi, one of the rising stars of European libertarianism, is the founder and Director General of the Italian free-market think tank, Instituto Bruno Leoni. His areas of interest include the history of economic thought and antitrust and healthcare systems. He is particularly well known for popularizing the work of past scholars under-appreciated by today’s libertarians. Currently an adjunct scholar at the Cato Institute, Mingardi has also worked with the Heritage Foundation, the Atlas Economic Research Foundation, the Acton Institute, and the Centre for a New Europe.

Leave a Reply

Your email address will not be published. Required fields are marked *