State aids and its economic effects in Turkey and European Union

ABSTRACTSubsidy issue has taken place in GATT agreement (General Agreement on Tariffs andTrade) signed in 1947, and extended scope in WTO and SCMA agreements in 1994.Agreements of European Coal and Steel Community and European Union have formed thestate aid concept. In the following years of World War II, using of state aids had increased inalmost every country till the ends of 70?s, and had gained constancy with the tight budgetpolicies in 80?s, but has shown a tendency to decrease in 90?s. The State Aids have beenprimarily given to industries on downfall and regional supports in 80?s. The focus of today?sstate aids are mostly on social aims such as regional improvement supports, technology orResearch and Development, education, employment, environmental issues.