87503 - The Law and Economics of State Aids

Learning outcomes

The course aims to provide students with a comprehensive understanding to the EU law of State aids in the financial sector, covering the relevant legal framework, case law, and the fundamental issues shaping EU State aid policy. Starting from a comprehensive presentation of State aid policy, its origin and evolution in the European Union, the course will dwell on practical aspects such as procedures for notification to the European Commission, and enforcement in the European Court and national courts. Most importantly, the course will offer an in-depth analysis of the Communication on state aids in the banking sector of 2013, of its application (measured against previous practice) and of the ensuing case law, as well as its relationship with further legislative developments in the field of bank resolution.

Course contents

1: Competition policy and economics
2: Overview of EU competition law
3: Article 107 (1)
4: Article 107 (2)
5: Article 107 (3)

6. The General Rules on State Aids

Introduction to State Aid Law and Policy

Definition of State Aid

Compatibility of Aid: the general principles

International Agreements

7. Specific types of Aid

The General Block Exemption Regulation

Regional Aid

SME and Risk Finance Aid

Research, Development and Innovation

Financial Services

8. Focus on State Aid in the Banking Sector

The special nature of banks and its challenges for competition policy

Competition, stability and moral hazard: the tension between financial regulation and State aid control

State aid to banking: application of the market economy investor principle

The States’ toolkit for rescuing banks in difficulty

Readings/Bibliography

K. Bacon QC, European Union Law of State Aid, 2017, Oxford (Part I: n. 1, 2, 3, 4; Part II: n. 5, 6, 7, 16).

Richard Whish and David Bailey, Competition Law, 9th ed. (Oxford University Press 2018)

Other recommended readings may be given and suggested to students during the course.

Teaching methods

Lectures, seminars, group readings, students' presentations

Assessment methods

For those who attend, the assessments on this course will be 50% by class presentation and 50% by submission of a research project (dissertation) of up to 2.500 words in length (excluding bibliography and/or bibliographical references in the footnotes) on a topic of own choice within the syllabus. The dissertation shall be submitted via email to f.ferretti@unibo.it [mailto:f.ferretti@unibo.it] by the exam date at 11 a.m. (“primo appello” only, unless differently agreed with Prof. Ferretti under exceptional circumstances).

For those who attended, but do not do the presentation or do not submit within the first exam date (“primo appello”), the assessment on this course will be 100% by submission of a research project (dissertation) of a length between min 3.500 words and max 4.000 words (excluding bibliography and/or bibliographical references in the footnotes) on a topic of own choice within the syllabus. The dissertation shall be submitted via email to f.ferretti@unibo.it [mailto:f.ferretti@unibo.it] by the exam date at 11 a.m.

For those who do not attend, the assessment on this course will be 100% by submission of a research project (dissertation) of a length between min. 3.500 words and max 4.000 words (excluding bibliography and/or bibliographical references in the footnotes) on a topic of own choice within the syllabus. The dissertation shall be submitted via email to f.ferretti@unibo.it [mailto:f.ferretti@unibo.it] by the exam date at 11 a.m.

All students are entitled to refuse the mark given, in which case they may resubmit for assessment on the basis of 100% submission of a new research project (dissertation) different from the one whose mark has been refused. All resubmissions will be assessed by 100% research project (dissertation) of a length between min. 3.500 words and max 4.000 words (excluding bibliography and/or bibliographical references in the footnotes) on another topic of own choice within the syllabus. The dissertation shall be submitted via email to f.ferretti@unibo.it by one of the following available exam dates at 11 a.m.

Teaching tools

Powerpoint presentations, textbooks, reading material

Office hours

See the website of Federico Ferretti