EU Administrative Governance
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EU Administrative Governance

Edited by Herwig C.H. Hofmann and Alexander H. Türk

This book is a unique contribution to the understanding of the reality of government and governance in the European Union (EU).
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Chapter 6: Administrative Governance in State Aid Policy

Herwig C.H. Hofmann


Herwig C.H. Hofmann INTRODUCTION This chapter looks at structures of administrative governance in the area of EC state aid control. It will – from a legal point of view – give an outline over the main issues of administrative governance in this policy area and discuss problematic aspects thereof. It will do so by outlining the background to the conditions of exercising governance in this area, including the actors and the legal framework. It will then turn to an analysis of the procedures for state aid control before considering one of the most important features of governance structures in this area – the administrative rule-making. In its final part, it will discuss questions of participation, legitimacy of decision making, transparency and legal certainty. The EC’s control of state aids under Article 87–89 EC is a policy area of high practical relevance both for the exercise of governance on the European and the national as well as sub-national levels.1 One of the reasons for the relevance of state aid control on the European level, is the central role that state aid control has played in the development of general EU administrative law. This is largely because state aid control under Article 87–89 EC is part of the chapter on competition law. Therefore it is one of the few policy areas, in which Community institutions are in charge of not only the legislation, that is the policy development, but also its implementation. The exceptionally high volume of EC decision-making in this policy area2...

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