State aids in the European Union (communities) Law

The state aids in the European Community have been seen as the step-child of theCommunity Competition Policy in relation to Anti-Trust Law.Especially,beginningwith 1980?s, the changes in the social snd economic situations,the expansion of theEuropean Community,and the developments in the period of transition as from aCommunity to the Union have increased the importance of the state aid issue.The role and the function of the state aid rules has been and remains one of thecornerstones of the European Union Law, designed to ensure that competition inthe internal market is not distorted. The importance is put on the realization of theeconomic aims of the European Community,and this depends on the process ofcreating a Common Market which enables the free movement of goods andservices.In this respect,the idea of restricting the state aid rules occur in order toprovide equal conditions for each state in production and development of goodsand services and sectors. Besides the restrictions of the state aids formed by themember states provide advantages ,especially,for the developing countries.Especially in the last decade, the importance of the state aid rules as a tool tosecure the free market within the European Union has increased enormously.During this period, its policy concerning several categories of aid was codified inguidelines and frameworks. The definition of state aid was received from decisionsof the Commission, Court of Justice and the Court of First Instance. The scope andconcept of the state aids which embody several expressions as incentives, subsidies,and public supports, have not definitely been outlined in the EuropeanCommunity. With in the EU context, a state aid is a plan granted through by stateor state resources, favoring certain undertakings or the production of certain goodsor services, which distorts or threatens to distort competition as it effects tradebetween member states. As state aid becomes more codified and state aid conceptsbecome more codified by the Courts, the case for some decentralization becomesmore stronger. It then provides an overview of the distinctive characteristics of theEuropean Communities? state aid regime and of Commission rule making on stateaid matters.The centralist mind in the European Community has become stronger during theperiod of expression of the state aid and the formation of the state aid rules. Thestate aid policy include special and distinctive features in order to provide thecommission with making necessary arrangements.As a general procedural rule, all aids have to be notified to the Commission. Theseaids are not put in o effect without the approvement of the Commission. Exemptionof this general rule is covered by the different categories of aid as,horizontal,sectoral, regional and de minimis aids.The state aid issue of Turkey which is a developing candidate country, isadministered by several political associations and institutions. Therefore, the stateaid issue which can be called as the Turkish Incentives system exhibits acomplicated structure. The fact that this mechanism fails its proper function andcan not make use of the state aid advantages in the benefit of the country will forma barrier in the usage of the country sources. In this respect ,the comparison of theTurkish system with the European Community`s brings about a highly noticabledifference in aim and function.Within the context of the relation between European Union and Turkey, the latterhas international obligations on state aid rules with the Association Council?sdecision No. 1/95. Harmonization and implementation of ?the acquiscommunutaire? of the European Communities which includes the application ofthe rules of Article 87 of EC Treaty, the secondary legislation, frameworks,guidelines and other relevant administrative acts in force in the EuropeanCommunity, as well as the case law of the Court of First Instance and the Court ofJustice of the European Communities, and establishing an independent nationalauhority on state aid is the main necessity for Turkey.Key Words: 1) State Aids 2) Common Market 3) Subsidies 4) Incentives 5)Customs Union