The Definition of Subsidy and State Aid WTO and EC Law in Comparative Perspective

This book presents a conceptual framework for analyzing the definitions of State aid and subsidy in EC and WTO law. This is done through a comparative analysis, examining the coherence of the conceptual understanding of the crucial, but still elusive, issue of the definition of subsidy. The first, important finding is that the topic is not only technical but raises more fundamental questions about the objectives of subsidy control in a given legal system and, more radically, about the goals of that system itself. The analysis does not only concentrate on the state of the law but critically looks forward offering suggestions for new interpretations and law reform. The book focuses on the substantive provisions of the EC and WTO relating to what are identified by the author as the core properties of a notion of subsidy, ie a form of public action, the grant of an economic advantage and the ensuing impact on the competitive process. The current regulation in EC and WTO law is analysed, compared and assessed in depth, and tested against a baseline represented by of a 'notion of subsidy inserted in a subsidy regulation pursuing certain objectives'. Drawing on the results of the comparative exercise, the book argues that both systems can learn valuable lessons from each other to achieve a greater coherence and more efficient regulatory system.

Luca Rubini is lecturer in law at the School of Law of the University of Birmingham. Previously, he was lecturer at the University of Leicester (2005-2007) and legal secretary to Advocate General Francis Jacobs at the European Court of Justice in Luxembourg (2002-2003).

1. Scope and Methodology of the ResearchScope of the ResearchMethodology of the ResearchExposition of Chapters, Selection of Issues2. The Public InterventionIntroduction: the Public Intervention in the EconomyForms of Governmental Action Covered by Subsidy and State Aid rulesBringing WTO and EC Law Together: Critical and Comparative Analysis3. The Advantage AnalysisIntroduction: the Advantage AnalysisEconomic Activity and Market BenchmarksNon-Economic Activity and Normative BenchmarksCase Study on the Financing of Public Services: Quasi-Market Transaction or Disadvantage Compensation?4. The BeneficiariesThe Identification of BeneficiariesThe Idea and Analysis of Specificity5. The Effects of Public Subsidies, their Control and RemediesThe Economics and Politics of Subsidies and State AidsThe Current Legal Framework: Brief Review and CritiqueConclusive Recommendations6. Conclusion