Discretion by the rules: European state aid policy and the 1999 Procedural Regulation

Abstract: The contribution assesses the effectiveness of the Procedural Regulation on the Commission's ability to control state aid. Using a principal-agent framework infused with insight from sociological institutionalism and data during the period 1992-2004, the study finds the Regulation strengthened the Commission's hand, reducing state aid. The study has implications for the single market and the literatures of international delegation and bureaucratic control.