ABSTRACT

This chapter explores the extent to which social considerations may lead to EU State aid rules being inapplicable, leaving Member States free to pursue their own social policies. It examines whether the application of State aid rules to transfer pricing arrangements and corporate taxation can be framed within the pursuit of the social market economy objective, and are underpinned by a broader social justice concern. The chapter analyzes whether and to what extent social considerations may lead to an aid measure being compatible with the internal market under the derogations provided by the Treaty. It focuses on aid having 'a social character' under Article 107(2)(a) TFEU and discusses the social dimension of derogations under Article 107(3) TFEU. State aid law and policy is traditionally considered part of EU competition law, and, as economic integration has become more established within the EU legal order, it has become more and more centred on competition concerns.