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CONTEXT: The connection between law and political determinants of health is not well-understood, but nevertheless it is suggested that the two are inseparable, and that this represents an "upstream" level with scope for influencing other determinants of health (particularly social). Solidarity underpins European healthcare systems and given its clear link with redistribution, can be seen as a means to address health inequities. As such, solidarity may be seen as a political determinant of health in the specific context of EU competition policy. METHODS: A range of EU case law, Treaty provisions, and Commission publications relating to EU competition policy are analysed. FINDINGS: Solidarity is typically juxtaposed as antithetical to competition, thus underpins exceptions to the applicability of the prohibitions on anticompetitive agreements, abuse of dominance, and state aid. Case law indicates a further dynamic between definitions of solidarity at EU and national levels. CONCLUSIONS: This analysis leads to two groups of considerations when framing solidarity as a political determinant of health in the EU competition policy context: firstly, the predominance of solidarity suggests it may shape competition reforms, and secondly the EU-Member State dynamic which indicates less EU-level reach into national competition reforms in healthcare than may be expected.
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The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and State aid. After providing a general presentation of the role of the Chief Competition Economist's team, this article surveys some of the main developments at the Directorate General for Competition over 2021/2022. In particular, the article reviews the new antitrust "Vertical Block Exemption Regulation" and "Vertical Guidelines", the new "Guidelines on State aid for climate, environmental protection, and energy", and the Veolia/Suez merger.
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The objective of this study is to measure the effects of state aid distributed to private enterprises in North Macedonia on the enterprises' efficiency. We examine the governmental Plan for Economic Growth (PEG) pursued through the Financial Support of Investment Law (FSIL) and the Fund for Innovation and Technological Development (FITD). We rely on a rigorous impact evaluation method, whereby comparison groups are sourced from the pool of rejected applicants for the two programs. We pursue conditional matching on firms' observables and then apply the difference-in-differences method to isolate the effect of the subsidy. FSIL State Aid showed largely ineffective, with producing hardly any difference in sales, investment, wages, or profits among recipients, except employment. These results demonstrate the absence of the incentive effect as it relates to FSIL state aid. On the other hand, the FITD State Aid showed to be considerably effective, as the recipients were found to have increased their sales revenue and their investment in technology and profits, corroborating the presence of the incentive effect as it relates to FITD state aid. Notwithstanding the legitimacy of the policy objective to equalize domestic and foreign firms in terms of their access to state aid, these findings document partial failure of the PEG to do so due to its structural problems.JEL classification: H25, C90.
Subject(s)
Motivation , Private Sector , China , Investments , Policy , Republic of North MacedoniaABSTRACT
The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and State aid. After providing a general presentation of the role of the Chief Competition Economist's team, this article surveys some of the main developments at the Directorate General for Competition over 2020/2021. In particular, the article discusses the Commission proposal on the Digital Markets Act, the developments on the State aid response related to the COVID pandemic as well as the Danfoss/Eaton merger.
ABSTRACT
Abstract How do governments distribute resources across economic sectors during a crisis? And why do some sectors receive more than others? The recent COVID-19 pandemic has highlighted the urgency of these questions. In this paper, we explore the extent to which a political economy perspective can help explain the characteristics of sector-specific state aid in the Netherlands, a traditionally corporatist country. While KLM, the biggest player in the Dutch aviation sector, was promised loans worth €3.4 billion, the horeca (hospitality) sector was denied a similar deal. Limited cross-case analysis eliminates purely economic accounts. We employed process-tracing and analyzed hundreds of national media articles to understand the influence of elected leaders, interest groups, and experts. We find that, against the backdrop of economic concerns, vote-seeking behavior by elected leaders as well as the strength and organization of interest groups influenced how much each sector could expect. Meanwhile, policy-seeking behavior helps explain the form that aid took. Our findings highlight the need to consider fiscal support in political economy terms, even during crises, and to explore the composition of state aid, not just its presence or amount.
Resumo Como são distribuídos os recursos de auxílio governamental entre os vários setores econômicos durante uma crise? E por que alguns sectores recebem mais do que outros? A recente pandemia da COVID-19 sublinhou a urgência destas questões. Neste artigo, discutimos como uma perspectiva de economia política pode ajudar a explicar as caraterísticas do auxílio estatal setorial nos Países Baixos, uma nação tradicionalmente corporativista. Enquanto o governo prometeu à KLM, o maior ator no setor da aviação holandês, empréstimos no valor de 3,4 mil milhões de euros, o horeca (sector da hotelaria) não recebeu um pacote de auxílio semelhante. A análise de casos elimina explicações puramente técnicas para esse fenômeno. Utilizamos process-tracing e fizemos uma análise de centenas de artigos publicados na mídia do país para compreender a influência dos líderes políticos, lobbies e peritos. Descobrimos que, num contexto de crise econômica, o comportamento eleitoreiro dos líderes políticos e a força e organização dos lobbies, determinaram a quantia que cada setor poderia esperar receber. Entretanto, os interesses no campo das políticas públicas ajudam a explicar a forma específica do auzílio. Nossas conclusões sublinham a necessidade de considerar o apoio fiscal em termos de economia política, mesmo durante crises, e de explorar não somente a existência ou o montante dos auxílios oferecidos pelo estado, mas também sua composição.
Resumen ¿Cómo se distribuyen los recursos de ayuda gubernamental entre los diferentes sectores económicos durante una crisis? ¿Y por qué algunos sectores reciben más que otros? La reciente pandemia de COVID-19 puso de relieve la importancia de estas cuestiones. En este artículo, exploramos cómo una perspectiva de economía política puede ayudar a entender la distribución del apoyo estatal en diferentes sectores en los Países Bajos, un país de tradición corporativista. Mientras que a KLM ‒el actor más importante del sector de aviación holandés‒ el gobierno le prometió préstamos de alrededor de 3.400 millones de euros, al sector HORECA (que congrega hoteles, restaurantes y cafeterías) se le denegó una ayuda similar. A través de un análisis cruzado de casos eliminamos razones puramente técnicas para este fenómeno. A continuación, utilizamos la metodología process-tracing y analizamos cientos de artículos de medios de comunicación holandeses para entender la influencia de líderes políticos, lobbies y expertos. Descubrimos que, en un contexto de crisis económica, el comportamiento electorero de los líderes políticos y el poder y organización de los lobbies determinaron la suma que cada sector podría esperar. Por otro lado, la estructura de dichas ayudas se explica a través del alineamiento político de los decisores políticos. Nuestros resultados subrayan la necesidad de estudiar el apoyo gubernamental en términos de economía política, inclusive durante crisis, y de explorar no solo la existencia o la cuantía de dichas ayudas sino también su composición.
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Humans , Male , Female , Public Policy , Financial Support , Policy , Pandemics , COVID-19 , LobbyingABSTRACT
Part of the controversy surrounding competition and health care stems from the complexity connected with delineating the applicability of competition law - encompassing both the provisions governing anticompetitive agreements and abuse of dominance and the state-aid rules. Cases determined at the European Union (EU) level within the past 30 years have developed a broad framework, and notable trends have emerged - for example, a distinction between health care providers and managing bodies (purchasers). The former have been subject to an 'abstract' test and the latter to a more sophisticated 'concrete' test. In this paper, we chart the development of the EU courts' approach to developing the 'undertaking' concept in health care and examine the current EU competition law framework with a view to identifying future directions. van de Gronden has recently identified a 'three-prong' test of exemption from competition law in connection with the recent CEPPB case: firstly, where the supply of services is predominantly dependent upon public financing; secondly, the public funding aims to achieve a public interest goal and thirdly, the activities concerned are closely related to this public interest goal. We examine this test in a health care context, drawing on our findings regarding Dutch competition reforms.
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Economic Competition/legislation & jurisprudence , European Union , Health Personnel/economics , Health Personnel/legislation & jurisprudence , Delivery of Health Care/economics , Delivery of Health Care/legislation & jurisprudence , Financing, Government , Health Policy/economics , Health Policy/legislation & jurisprudence , HumansABSTRACT
This paper examines the Dutch policy reaction to the financial crisis in the public transport sector caused by Covid-19. Using the multi-level governance theory complemented with the notion of informal governance, the analysis explains the decision-making that defined a State-aid scheme to public transport operators following a process of consultation and concertation between state and non-state actors across governance tiers. To agree on a financial rescue package, these actors engage in front-stage and back-stage political interactions, constrained and enabled by formal and informal governance structures and practices. By analyzing how the interplay between the political mobilization of actors, policy-making arrangements, and existing polity structures shapes political alignment around the financial support scheme, the paper concludes that the crisis did not change customary governance and policy-making practices. Stakeholders sought their usual partners and followed existing routines in path-dependent ways to address the policy challenge brought by Covid-19. Despite being triggered by a major exogenous shock, the policy response to the crisis was driven mainly by endogenous forces; the decision-making mechanism remained the same and the network of actors did not shrink or expand.
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The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and State aid. After providing a general presentation of the role of the Chief Competition Economist's team, this article surveys some of the main developments at the Directorate General for Competition over 2019/2020. In particular, the article reviews the economic analysis in the Qualcomm predation case, recent developments in the assessment of vertical mergers, as well as the new "Temporary Framework" that has been developed in the wake of the COVID pandemic.
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This paper discusses the COVID-19 pandemic as an opportunity to reconsider the foundations of the global aviation system. There is much evidence that air transport creates opportunities as well as risks. While the former accrue to businesses and individuals, risks are imposed on society. Pandemics, in which aviation has a role as a vector of pathogen distribution, as well as the sector's contribution to climate change are examples of long-standing negative externalities that continue to be ignored in assessments of aviation's economic performance and societal importance. As commercial aviation has shown limited economic resilience throughout its history, this short paper questions whether a return to business-as-usual, supported by very significant State aid payments, is desirable. The volume growth model championed by industry and aviation proponents may have to be replaced with an alternative model of a slimmed air transport system that is economically less vulnerable and accounting for its environmental impacts.
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This paper analyzes airline reactions to the COVID-19 crisis in the spring months of 2020 along the typical crisis response strategies of retrenchment, persevering, innovating, and exit. Based on the content analysis of 148 news items filtered from a daily aviation industry newsletter published during the unfolding of the crisis in Europe (from January 6 to June 2), the paper specifies and differentiates European airlines' strategic responses, outlines key implications for the post-COVID-19 competitive landscape, and raises attention points for managers and policy makers.
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OBJECTIVE: The aim: The purpose of this article is to concretize the directions of improving legal support of control over the state aid in the field of health care. PATIENTS AND METHODS: Materials and methods: The study analyzed the sources of the European Union law and legislative acts of Ukraine on the provision of state aid to business entities, relevant materials of the Antimonopoly Committee of Ukraine, including more than 20 decisions taken by this body based on the notification review results of the state aid provision in the field of health care. The methodological basis of the research consists of general and special methods of scientific research, in particular, dialectical, analytical-synthetic, system-structural, formal-logical, comparative legal methods. CONCLUSION: Conclusions: Based on the results of the study directions for improving legal support for state aid control in public health sector have been proposed, in particular, legal qualification of the activities of health care providers, determining whether certain types of public health activities belong to those that constitute a common economic interest and finalizing the criteria used to assess admissibility of state aid in this area.
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Commerce , Delivery of Health Care , European Union , Humans , Public Health , UkraineABSTRACT
The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and state aids. This year's article provides first a general presentation of the role of the Chief Competition Economist's team and surveys some of the main achievements of the Directorate General for Competition over 2017/2018. The article then reviews: the Google Search (Shopping) case, the role of price discrimination in state aid cases; and the use of counterfactuals in merger cases where alternative transactions might have occurred absent the merger.
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The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and state aids. This year's article provides first a general presentation of the role of the Chief Competition Economist's team and surveys the main achievements of the Directorate General for Competition over 2016/2017. The article then reviews the economic work undertaken in one merger case between Dow/DuPont, which raised specific issues related to innovation, as well as in an antitrust case on parity clauses related to Amazon e-books.
