Compatibility of State Aid with the Internal Market of the European Union in times of Public Health Crisis caused by COVID-19
Compatibility of State Aid with the Internal Market of the European Union in times of Public Health Crisis caused by COVID-19

Summary/Abstract: The European Union (EU) internal market operates on the basis of common rules on competition, taxation and legislative harmonization. Crisis situations, such as the current public health crisis caused by the coronavirus pandemic (COVID-19), call for the need to change general rules for the functioning of society, the usual rules being replaced by the application of exceptions to these rules.This scientific approach highlights such an exception to the rule prohibiting state aid, in the context of the unprecedented economic and social challenges for the EU posed by the COVID-19 pandemic, and examines the extent to which the adoption of state aid is compatible with the specific internal market principle of fair competition. This paper examines the legal regime of state aid, highlighting the relevant case law of the Union courts and the decision-making practice of the European Commission, and identifies the special regulatory framework adopted at EU level, based on the exercise of its exclusive competence in establishing of competition rules necessary for the functioning of the internal market. Thus, it highlights the main elements of the European Commission's communications on the possibilities for a coordinated EU economic response and on the temporary framework for State aid measures to support the economy in the context of the current COVID-19 pandemic. The paper addresses the specific situation of the Romanian State Aid Scheme approved in accordance with the exception stated in Article 107 (3) (b) of the Treaty on the Functioning of the European Union (TFEU) on the compatibility with the internal market of State aid intended to remedy a serious disturbance in the economy of a Member State.

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