The Economics of State Aid for the Rescue and Restructuring of Firms in Difficulty: Theoretical Considerations, Empirical Analysis and Proposals for Reform. Bruges European Economic Research (BEER) Papers 27/September 2013

State aid for rescue and restructuring (R&R) of companies in difficulty causes a significant distortion of competition. It prevents the market from eliminating inefficient companies. Because of this, the European Commission has to be specially strict when it assesses rescue or restructuring aid. This paper examines recent cases of corporate restructuring partly funded with public money. It explains the main aspects of the current guidelines which are applicable to R&R State Aid and establishes a theoretical framework for the economic assessment of R&R aid. It then analyses decisions adopted by the European Commission concerning R&R state aid during the period 2000-2013. It finds that there is little economic rationale in the granting of R&R aid. The paper concludes by applying the lessons drawn from the empirical analysis to the anticipated revision of the R&R guidelines in the context of the State Aid Modernisation process.

The European Union’s Response to Piracy: Are the Lessons Learned in the Horn of Africa a Model for the Gulf of Guinea? EU Diplomacy Paper/2015

The European Union (EU) is seen as the leading actor in successfully fighting piracy around the Horn of Africa. As a global trade power with strong economic interests, the EU is also challenged by similar maritime security threats in the Gulf of Guinea. To date, there has been no comprehensive analysis to assess the potential transfer of successful EU instruments from the Horn of Africa to the piracy situation in West African waters. This paper examines to what extent the EU can draw on its experience made in the Horn of Africa to deter piracy in West African waters. Based on qualitative research interviews, lessons learned from East Africa are identified and subsequently applied to the situation in the Gulf of Guinea. The results show that the EU is only partially drawing on its experience made in the Horn of Africa. One the one hand, it is rather reluctant to use crisis management instruments such as naval operations. On the other hand, the EU is drawing on its successful leadership in international political and military cooperation from around the Horn of Africa in order to make more effective use of available resources in the Gulf of Guinea.