THE APPLICATION OF STATE AID RULES TO THE EUROPEAN UNION TRANSPORT SECTORS


11 Colum. J. Eur. L. 557 (2005)

Christopher H. Bovis. Professor of Law and Jean Monnet Chair in European and Business Law, Lancashire Law School; Visiting Senior Research Fellow, Institute of Advanced Legal Studies, University of London.

In this article the author provides a dissected analysis of the application of state aids acquis and jurisprudence to the transport sectors in the European Union. The purpose of this article is three-fold. First, an attempt will be made to position the concept of public service obligations and the notion of operating aid within the framework of state aids as applied to the transport sectors. The result of this attempt will codify the approach of European institutions, reveal the themes emerging from jurisprudential inferences and assess their significance for the future application of state aids to transport. Secondly, an analysis of the practice and lex judicata of operating aid will reflect on the interplay between the liberalization of the transport sectors in the Community and its impact on state aid application. Finally, by reference to the relevant acquis the author will provide insights into the function of the application of state aids in transport within the broader framework of anti-trust in the common market.