The European Commission’s new Temporary Crisis and Transition Framework – which fosters public investment support in sectors which are key for the transition towards a net-zero economy – acknowledges this risk and includes several safeguards. Importantly, aid cannot trigger relocation of investments between Member States.
[20] Undue protectionist policies that give a competitive edge to domestic industries may trigger beggar-thy-neighbour effects that undermine trust and openness. Chart 6 Public debt and State aid expenditure in 2019 (as a percentage of 2019 GDP)  Source: European Commission.