Harmful Tax Competition and Fiscal State Aid: Two Sides of the Same Coin?

One of the consequences of globalization is the increased openness of economies and the interdependence of states. Tax competition between states is inevitable. In parallel, the Commission has enacted the State aid rules due to the risk that aid can cause a distortion in competition between economic operators acting in the internal market. In this article, the convergences and divergences between both measures applied by the Commission are analysed.