The Role of EU State Aid Policy in Enhancing the Development of the Industrial Sector

Sa？etak This paper analyzes the role of the European Commission’s state aid policy as a tool of enhancing the development of the industrial sector within the European Union and supporting investments during the crisis, especially with reference to regional aid. By analyzing the European Commission’s policy, this paper highlights how state aid can have a crucial role during the financial crisis if it is used by the public sector to support private investment in research and development. The change of the European Commission’s approach over recent years as well as the positions of the Member States are presented. By analyzing the most relevant recent law cases the position of the European judges is also presented. However, the Court of Justice of the European Union cannot question the Commission’s decisions due to the level of discretionary power enjoyed by the central European Union authority in evaluating the compatibility of aid with the internal market