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The extent of power and latitude of the European Commission in the EU state aid policy : an analysis through supranational governance theory

Khair, Maulidinov Maulana (2015) The extent of power and latitude of the European Commission in the EU state aid policy : an analysis through supranational governance theory.

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Abstract:The present study examines the scope of the European Commission’s discretion and its restraint in the field of state aid policy, specifically in the banking sector during the times of hardship which was caused by the financial crisis by applying the supranational governance theory. The research question to be answered is: How Much Power And Latitude The European Commission Has In The EU Competition Policy’s State Aid Policy? To answer the research question, a single case study research and content analysis with reference to supranational governance theory will be enclosed, in order to provide adequate evidence to see if the expectations hold. The qualitative research method of content analysis was adopted for data collection and data analysis. The main level of analysis is the European level and the focus will be on relevant political actors, such as the EC, the MS, NCAs, MS’ central and regular banks, ECB, and other related supranational organizations. Thus, it will make sense to take actor’s interactions as unit of analysis to study the outcome of EC’s power and willingness and the financial limitation which leads to intergovernmental politics that hinders EC’s discretion in the case of the EU banking state aid policy. Lastly, regarding the main finding of this study; although the European Commission and its DG Comp have the absolute independent powers over this policy based on the formal legal competence, its drawback in financial resources in rescuing crisis-struck banks has made the Member States -especially the powerful ones- acquired a new position over the Commission due to their financial strength. The financial limitation has turned into an intergovernmental politics that limits the EC’s ability in EU banking state aid.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:89 political science
Programme:European Studies MSc (69303)
Link to this item:http://purl.utwente.nl/essays/66845
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