State Aid and Direct Taxation and the Big Eruption between the US and the EU’

State Aid and Direct Taxation and the Big Eruption Between the U.S. and the EU.

Published by Liza Lovdahl Gormsen in The Antitrust Bulletin May 2017

 This article critically assesses the division that the recent decisions of the European Commission in the field of State aid have exposed between the EU and the U.S. It examines how the two legal orders address the issue of government subsidies and explores the reasons for their different approach. It argues that State aid law has become increasingly important as a competition policy issue and its enforcement is much more aggressive compared to the past. The article tries to untangle the long-term effect that the recent cases of fiscal aid will have for the tax relationship between the U.S. and the EU. Finally the article concludes with some tentative solutions and stresses the importance of international cooperation in the field of taxation.