On EU State Aid Control

State aid control is the unique legal system of competition in EU.Unlike the antitrust which mainly against to private's behaviors of distortion of competition,the objective of state aid control is to regulate the interventions of government which may distorts the market competition through direct subsidies and other forms,to prevent member states of EU from adopting state aids which may be incompatible with the internal market in order to protect their own interests.Therefore,the EU state aid control system is an instrument of competition law to make industrial policies such as subsidies to be legalization and more normative.For the purpose of maintaining the fair competition of the common market,as the core provisions,articles 107-109 of Treaty on the Functioning of the European Union(TFEU)make the general stipulation of state aid control system.Regulation,directives,decisions and cases from EU Committee,EU Council and ECJ have further rich this system.The practice of EU state aid control has become a model of well dealing with relationship among nation,enterprise and market in the world.All of the eight chapters of this thesis comprehensively and systematically introduces the EU state aid control system,then give a suggestion to apply the same legal system in China,in order to further improve the socialist market economy and the socialist legal environment.Specifically,the first chapter proposed the question,and the significance,ideas and methods of the research.The second chapter explained the legitimacy and rationality of the EU state aid control system from three aspects of the realistic basis,economic basis,legal basis.The third chapter introduced the concept of “state aid” in Article 107 TFEU and its connotation and extension.Chapter four reviewed all of the state control exceptions which derived from the EU treaties and its authorized to the EU Council,particularly specified the services of general economic interest,general block exemption,de minims aid and so on.The fifth chapter is about the procedure rules of state aid control,including obligation of the EU,notification,recovery,etc.Chapter six focused on the economics instruments used by the European Commission in assessment of the state aid concerned,containing the market economic operators test,which used to determine whether certain measures consist a state aid,and balancing test which can evaluate the effects of the state aid;then put forwardpersonal views on its role in practically application.The seventh chapter introduced the EU reform so called “state aid modernization”.Finally in chapter eight,it summarized the characteristics of the state aid control in EU and compared with the U.S practice.After that,it suggested that China should establish state aid control system,in order to bring the government behaviors and the implementation of industrial policy under the rule of law,and to coordinate the relationship between central government and local governments at all levels.State aid control is in essence an special policy instrument of bringing the industrial policy into the regulation framework of competition policy,the purpose of which is to maximize the whole social welfare,not only to pursue the pure economy efficiency or consumer benefits.Although there is a great difference in the field of political system,national conditions between China and EU,as both are statue law countries,EU state aid control system provides a great enlightenment to China.China should follow the quintessence of EU state aid control,coordinating the relationship of competition policy and industrial policy,clearly demarcating the function of the public and the private,and to build up an independent judicial enforcement system.By doing this can be in favor of regulating the practice of industrial policy in China,of fostering the completion culture and law-abiding consciousness of the whole society,of enhancing government credibility and maintaining the healthy operation of the socialist market.