State Aid as a Driver of the EU Green Transition: A Comparative Analysis of Member States in the Post-Pandemic Era

Andreea-Emanuela Drăgoi ()
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Andreea-Emanuela Drăgoi: Institute for World Economy, Romanian Academy 13 September Street, No. 13th, Bucharest, ROMANIA

Global Economic Observer, 2026, vol. 14, issue 1, 31-41

Abstract: State aid policy is often perceived as a restrictive component of the European Union (EU) competition law. However, recent crises, such as the COVID-19 pandemic and the economic disruptions generated by the war in Ukraine, have demonstrated its capacity to function as an effective policy instrument enabling Member States to mitigate economic difficulties and strengthen economic resilience. At its core, EU state aid policy prioritizes horizontal aid aimed at addressing market failures, particularly in areas such as environmental protection, research, development and innovation (RDI), and other objectives of common European interest. Against the backdrop of persistent economic challenges and the European Union’s continued commitment to the green transition, this research examines the extent to which state aid granted by Member States in recent years has contributed to advancing sustainability objectives. The methodology relies on a comparative analysis of state aid measures implemented between 2019 and 2024, based on data provided by the State Aid Scoreboard, complemented by a case study focusing on Romania. The paper aims to assess both the evolution of environmentally oriented state aid and the role of national policy choices in supporting the EU’s green transition agenda.

Keywords: State Aid; European Union; green transition; environmental state aid; Romania (search for similar items in EconPapers)
JEL-codes: H23 H25 O38 Q57 Q58 (search for similar items in EconPapers)
Date: 2026-06
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