State Aid in Europe
Investigating Factors Affecting Aid Intensity from a Business Perspective
Keywords:State aid, aid intensity, European Union, political affiliation
The effect of state aid has been widely discussed in the existing literature from a policy makers point of view, yet the business perspective on obtaining state aid has not. This paper attempts to shed light on this viewpoint by examining potential factors affecting the aid intensity of state aid in Europe. It finds that the extent of state aid differs between countries, governing parties and the type of aid. Furthermore, it finds a general trend of ecreasing aid intensities in Europe. Based on these findings, businesses can adapt their strategy to optimize their expected aid intensity.
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