Template-Type: ReDIF-Paper 1.0
Title: Which Role for State Aid and Merger Control During and After the COVID Crisis?
Author-Name: Chiara Fumagalli
Author-Email: 
Author-Name: Massimo Motta
Author-Email: 
Author-Name: Martin Peitz
Author-Email: martin.peitz@gmail.com


Classification-JEL: L52, L53, K21, H25
Keywords: competition policy, state aid, merger control, Covid-19, failing firm defence

Abstract: In response to the severe economic crisis triggered by Covid-19, state aid and a relaxation of competition rules, including merger control, have been proposed as policyoptions. We argue that there is a clear role for state aid in sectors experiencing a temporary shock, whereas state aid in sectors affected by a permanent long-term shock is more problematic. We also argue that merger control should not be relaxed and that in particular any merger proposal invoking the failing firm defence requires close scrutiny.

Note: 
Length: 14
Creation-Date: 2020-06
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp184
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2020_184