Between rational and realistic – the Market Economy Operator Test in European Union State aid law in times of economic downturn

The State's involvement in the economy tends to increase as the economic situation worsens. At the same time there is an observable decline in private sector investments. In this context, this paper aims to put forward a case for revision of the Market Economy Operator Test (MEOT) to better reflect these evolving market conditions. The analysis will seek to verify the initial assumption that the current interpretative approach to the MEOT may fail to recognize the difference between rational and realistic transactions and to determine whether improvements are possible, feasible and appropriate under the EU Treaties.

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