The ‘Market Economy Investor Principle’ to Evaluate State Aid

Abstract

The MEW has traditionally played a central role to establish whether State measures entail a selective advantage under Article 107 TFEU. However, it is not completely clear whether the MEW can be considered a ‘principle’, or a ‘test’, since both definitions are currently utilized by practitioners and scholars. The thesis put forward here is that the MEW is an interpretative principle composed of the private investor test, the private creditor test, and the private vendor test. The application of the MEW has witnessed a constant evolution over the years, which brought about an increased relevance of the principle. In this respect, it is interesting to consider whether the major changes in the application of state aid rules triggered by the financial crisis have somehow affected the MEW and its traditional features. The analysis carried out on this specific point shows the MEW has maintained substantially unmodified its functional role and centrality.