Brattle Principals Dr. Adina Claici and Laurent Eymard have coauthored an article with Shahin Vallée, “European Union: Economists’ Perspective on State Aid and COVID-19,” for Global Competition Review.
The rapid suspension of European fiscal rules and the expanded flexibility under state aid rules stimulated the adoption of national support programs when the European economy was frozen to limit the spread of COVID-19. However, these national support programs varied greatly across the EU. In the article, the authors flag certain issues that may require additional scrutiny by policymakers and advocate for greater transparency and more stringent assessment of the trade-off between protection and distortions.
The full article can be found on the Global Competition Review website.View Article