An outpouring of state aid and financial support from Brussels to European companies has radically altered the “level playing field” between countries and their businesses once guarded as the central pillar of the single market. EU state aid expenditure rose from €102.8bn in 2015 to €334.54bn in 2021. Between March 2022 and August this year, Europe approved €733bn in state support, according to unofficial commission figures seen by the FT.

Yeah, but look at the chart. That increase is mostly COVID-19 spending.

Now, I’m not saying that this is necessarily desirable – maybe tough times are when you decide to let things sink or swim, but:

• I know that we added support for some businesses and individuals during COVID-19 in the US, so that’s not unique to the EU. And I haven’t followed what China’s been doing, but I wouldn’t be terribly surprised if they did so too.

• This was always going to be short-term. That is, this surge is something that I expect to self-resolve, at least as a near-term problem. Maybe there are concerns about what happens with state aid next time there’s a crisis, but I don’t think that COVID-19-era conditions are the new economic norm.

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