Weaponising competition

State aid and merger control as economic security tools

Alexandros Lymperopoulos

The economic security strategy recently introduced by the European Union (EU) signals a shift in EU trade policy. Once a zealous advocate of free trade, the EU has now adopted a "yes, but ..." approach in its trade relations. This article¹ explains why and how state aid law and merger control have a role to play in achieving economic security. It highlights that EU state aid law is aware of and responsive to international subsidies and seems aligned with economic security considerations. Regarding competition law, however, the European Commission (Commission) appears hesitant to include it in the toolkit of the economic security strategy. That being said, aligning state aid and merger control with economic security is not without contradictions or risks.