State aid control in the modernisation era: Moving towards a differentiated administrative integration?

Abstract

Despite contentions that state aid control is an instance of direct execution, the State Aid Modern-isation (SAM) package has largely dispersed responsibility for giving effect to the common legal framework across national administrations. In this setup, the effectiveness of state aid law is confronted with asymmetric capacities, diffuse application of complex rules and difficulty in keeping dispersed powers under control. This article combines selected evidence on the operation of state aid control with a multidisciplinary analysis of the functioning of integration mechanisms in the European administrative space. The aim is to examine the potential effects of SAM. It contends that, while the reform has strengthened the Commission's dominance, the instruments of administrative integration might fail to secure adequate capacities and implementation performances at national level, due to constitutional constraints and opposing forces. This effect, it is argued, could be divi-sive, and risks undermining the integrity of the internal market.