Supporting the EU Economy through State Aid during COVID-19 Crisis. A Comparative Approach.

The current global crisis triggered by the COVID-19 pandemic has an even stronger negative impact on the EU economy than the previous international crisis from 2008, given that its repercussions are felt not only on the banking sector, but rather on all economic sectors. As highlighted by the international crisis of 2008, state aid policy is a flexible and effective tool for providing financial support to Member States' economic sectors. As a result, this article has as major objective to present how state aid has been used by Member States to mitigate the negative economic effects of the COVID-19 crisis, while highlighting what are the opportunities for Romania to use this type of financial instrument in order to support the national economy. This research focuses on the analysis of state aid schemes implemented by Member States, based on the legal basis created by the New Temporary Framework on State Aid (adopted in March 2020). The research methodology is primarily based on a comparative analysis between the types of state aid granted during the 2008 crisis and the current state aid implemented by Member States to deal with the difficulties created by the COVID-19 crisis. The research methodology also uses case studies, related to the experiences of old and new Member States, aiming to highlight how the state aid policy has been used to remedy economic distortions across the EU. The results of the research have as major goal to set out recommendations for the most efficient use of state aid policy to support the economic recovery while maintaining free competition and preventing market failures. [ABSTRACT FROM AUTHOR]