A short history of the (few ineffective) rules on relocation in EU law

This communication explores a fundamental contradiction emerging from the EU regulatory framework of state aid legislation as it has operated and – by and large – continues to operate even at the time of writing: a contradiction with important implications for internal (intra-EU) relocation dynamics. On the one hand (historically tight) EU state aid controls have always allowed some margin for (state or EU/structural) subsidies to apply in pursuit of policy objectives linked to regional development. In practice, this is to attract or retain businesses in disadvantaged areas of the Union. On the other hand, the EU has strived to ensure that any subsidies pursuing these objectives would not compromise the functioning of the internal market, and in particular that they would not trigger a ‘subsidies race’ between countries.

Silvia Borelli est professeure de droit européen du travail à l'université de Ferrare (Italie).

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