The EU State Aid Law and Policy during the Energy Crisis and Its Application by Member States: Implications for the Green Transition

Abstract

The European Union’s transition to a carbon-neutral economy is currently facing systemic disruptions stemming from the energy crisis. In response, the EU has continuously liberalized State aid regulations through temporary crisis frameworks such as the TCF, the TCTF, and the METSAF, while integrating this mechanism into the non-crisis structural framework of the CISAF. However, the thesis argues that this very flexibility gives rise to a legal paradox: massive State aid aimed at protecting economic autonomy directly threatens the “level playing field” principle and fragments the internal market. Through an analysis of doctrinal theory and practice in Member States, the thesis points out two core structural gaps that undermine the green transition objective. To enhance policy consistency and enforceability, the thesis proposes measures to establish unified industrial governance. These reforms are crucial for the EU to achieve carbon neutrality while upholding the core constitutional foundations of the rule of law and competitive order.