HOW THE RUSSIAN-UKRAINIAN WAR HAS SHAPPED THE STATE AID POLICY IN EU1
Andreea-Emanuela Drăgoi ()
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Andreea-Emanuela Drăgoi: Institute for World Economy, Romanian Academy
Global Economic Observer, 2024, vol. 12, issue 1, 26-37
Abstract:
The ongoing war from Ukraine (started by the Russian Federations’ unprovoked military aggression on Ukraine in February 2022) has created a tense geopolitical situation with widespread economic repercussions, affecting not only the directly involved parties but also their economic partners. The European Union (EU) has been significantly impacted by this event, particularly through the sanctions imposed on the Russian Federation, which have disrupted the bilateral trade. Against this background, the European authorities have utilized the State aid policy to mitigate the adverse effects of the Russian-Ukrainian war on the economies of the Member States. Our research focuses on identifying the main instruments used in the field of State aid and on examining how the Member States, particularly Romania, have leveraged these tools to lessen the war's negative impact on their national economies. To achieve this, we will conduct a comparative analysis of the State aid provided since the start of the Russian-Ukrainian war, using the latest data published by the European Commission in the State Aid Scoreboard. Additionally, we will present a case study on how Romania has utilized the Temporary Crisis Framework (TCF) and the Temporary Crisis and Transition Framework (TCTF) to support its national economy amid the war's consequences. Our primary finding reveals that, similar to the pandemic crisis, the State aid policy has proved its effectiveness and adaptability in promptly supporting the economies of the Member States affected by the Ukrainian war. Furthermore, our second finding shows that Romania has successfully taken advantage of the new opportunities presented by TCF and TCTF.
Keywords: Russian-Ukrainian war; State aid; Temporary Crisis Framework; Temporary Crisis and Transition Framework; EU; Romania (search for similar items in EconPapers)
JEL-codes: F01 P43 P45 P49 (search for similar items in EconPapers)
Date: 2024-06
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