Brattle Principal Laurent Eymard has coauthored a Global Competition Review (GCR) article on state aid and the effect the pandemic has had on public policy and the economy in Europe.
The article, “State Aid: State Aid and COVID-19 – Economist Perspective,” explores some of the effects of the decision to freeze many economies at the beginning of 2020 to limit the spread of COVID-19. With the freeze came a rapid relaxation of regulations – including European fiscal rules and control over state aid – which was necessary to enable governments to quickly adopt national support programs. However, this approach also caused a significant departure from the European Commission’s objective of maintaining a level playing field within the single market. As we look ahead, national governments will need to be more transparent about their efforts to address COVID-19 so that the European Commission can assess the extent to which these nation-level actions affected the EU as a whole.
The full article can be found on GCR’s website.