Publisher:
Publications Office of the European Union, Luxembourg
The implementation of state aid to support net-zero-related strategic industries reinforces the single market and can enhance the EU's open strategic autonomy. - In fact, the simultaneous support by several Member States to net-zero-related...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
VS 897
Inter-library loan:
No inter-library loan
The implementation of state aid to support net-zero-related strategic industries reinforces the single market and can enhance the EU's open strategic autonomy. - In fact, the simultaneous support by several Member States to net-zero-related industries results in higher economic impacts both at the EU and Member States' levels compared to individual action by a Member State. - The simultaneous implementation of state aid increases intra-EU spillovers, reducing the risk of fragmentation and thus strengthening the single market. - A simultaneous implementation of state aid has a larger economic impact in non-EU countries than in the rest of the EU in the subsidised green industries, confirming the high "initial" strategic dependence of the EU in those industries. - Simultaneous implementation of state aid can enhance the EU's open strategic autonomy by expanding the production capacity of non-subsidised industries within the EU, which may be suppliers of the subsidised green technologies, and hence reinforcing the EU's value chain. - Further analysis will be needed to address firm heterogeneity, production factor mobility across countries, and the longer-term effects of the policy.
