State aids in the European Union competition policy and adaptation of Turkey

ABSTRACTGraduate ProgramState Aids in the European Union Competition Policy and Adaptation of TurkeyDokuz Eylul UniversityInstitute Of Social SciencesDepartment of European UnionGlobalisation has removed boundaries between states and facilitiated freemovement of goods, services and production factors. In this way globalisation hasassumed a leading role in promoting free trade and increasing international competitionthroughout the world. National governments support undertakings operating within theirboundaries with different ways in order to adapt them to this competitive situation andincrease their competitive powers. The most important one of these support measures isstate aids. States increase competitive advantages of specific undertakings, regions andsectors against their opponents in other states by giving state aid to them. However, stateaids frustrate the operation of international free competition and prevent the mostefficient allocation of resources by causing unjust competition between undertakings. Forthis reason, efforts are continued under the framework of different internationalorganizations in order to control and reduce harmful state aids.One of these international organizations which gives importance to supervision ofstate aids is European Union (EU). EU established an Internal Market based on freemovement and free competition. For a properly functioning Internal Market, freecompetition has to be maintained. For this reason EU has a comprehensive and effectivestate aid legislation which consists of EC Treaty rules, Regulations, Commission andEuropean Court of Justice (ECJ) decisions. Commission, which has wide discretion instate aid field, supervises state aids effectively.Turkey, as a candidate country to the EU membership, has to adjust its state aidlegislation to EU legislation on state aids. To this end Turkey has to carry out itsobligations are relating to state aids in National Programme and Accession PartnershipDocument within short and long run.Purpose of this work is to examine EU state aid legislation that is an importantchapter of accession negotiations with EU and analyze adaptation of Turkey?s state aidlegislation to EU?s. For this aim, before all else, EU state aid law and supervision systemhave been examined and then it has been tried to clarify adjustment of Turkey to EU stateaid legislation by examining state aid legislation of Turkey.Key Words: 1) European Union, 2) State Aid, 3) Turkey, 4) Adaptation, 5) NationalProgramVVI