The monitoring and controlling of state aid in European Union and Turkey

The states strengthen some particular businesses, sectors and areas against their competitors by funding the state subsidy to them and increasing theircompetitive advantages. Since the state subsidies include the resource allocation except the market system, they break the competition environment in the markets and lead the resources to distribute unfairly. For this reason, international organizations are trying to get under control of the state subsidies. The topic of the state subsidies is the section of the competition policy in the European Union, which has established the European Economic Community based on free circulation and free competition environment. While the state subsidies in the European Union has been banned because of interrupting the function of the European Economic Community, the ones compatible with it have been allowed with the some exemptions. There is a comprehensive and effective legislation of the European Union's state subsidies which consistof Founding Treaty, Regulations, Commission and European Court of Justice (EJC) and Commission's decisions. The observation and supervision of the state subsidies are under the authorization of committee. Turkey, as being a candidate country for the European Union, is liable for being attuned to the European Union's legislation in this area. At the same time, Turkey has promised to harmonize the 1/95 numbered decision of Customs Union with the European Union's legislation in the field of state subsidies. Turkey has performed the significant part of this undertaking by becoming effective of the 6015 numbered law about the observation and the inspection of the state support, which was published in the official journal of the Republic of Turkey, in October 23, 2010. In this study, the conception of the state subsidy has been examined with the perspective of the European Union and the legislation about this subject with the system related to control of the state subsidies have been stated in detail. Also, the present system of the state subsidies in Turkey have been studied, then the reforms brought by the 6015 numbered law to our state subsidy's system have been probed. As the result of this study, it is concluded that the 6015 numbered law incorporates some regulations to correct the deficiencies of the state subsidy's system in Turkey and enforcing this law contributes to the system benefited from the state by removing obstacle, which is a breaker on competition. Key Words : State Aids, European Union, State Aids in Turkey, The Monitoring and Controlling in Turkey.