In a recession, national governments should have the freedom to subsidise their own businesses

The European Treaty makes allowances for state aid to be granted to undertakings 'to make good the damage caused by natural disasters or exceptional occurrences'. Since this recession is seen as the biggest in most people's life times, surely the current recession counts as an 'exceptional occurrence'. The whole Community is effected, and so every Member State government should be granted power under this derogation to resolve matters as they see fit.

Derogations are exceptions to the rule. If every member state was granted such a privilege then it is no longer a derogation. What is needed is a new Directive on how Member States are to combat the recession as opposed to allowing Member States a blanket exception so that they can grant aid to any under taking they see fit. This will result in a breaking of the harmonious Community and result in it's demise. Article 2 of the Treaty states that there is to be a convergence of economic performance. This will not be the case if Member States are allowed to subsidise to different economic sectors and to varying degrees.