State aid for businesses in difficulty The European Commission has revised its rules as to how it assesses European Union (EU) countries’ State aid (public subsidies) to support firms in difficulty. This is to ensure that public money is targeted where it is most needed and that company owners pay their fair share of restructuring costs. State aid to firms in difficulty gives them an […]
Application of rules for services of general economic interest (SGEI) Communication on the application of the EU State aid rules to compensation granted for the provision of services of general economic interest Decision 2012/21/EU — application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with […]
State aid: EU guidelines for regional aid for 2014 to 2020 EU guidelines on how EU Member States can grant investment aid to companies to support the development of disadvantaged regions in Europe between 2014 and 2020 entered into force in July 2014. Guidelines on regional State aid for 2014-2020 (Official Journal C 209 of 23.7.2013). European Commission has produced guidelines as to how EU […]
Regulation (EU) No 1407/2013 on de minimis aid for state aid It disciplines small state aid amounts (so-called De minimis aid) that are exempted from state aid control as they are deemed to have no impact on competition and trade in the EU’s internal market. De minimis aid indeed refers to small amounts of state aid to undertakings (essentially companies) that EU countries do not […]
Compatible Aid Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty Known as the general block exemption regulation* (GBER), it seeks to enable EU governments to give higher amounts of public money to a wider range of companies without having to request prior permission from the European Commission. As a […]
Notion of State aid Commission Notice on the notion of State aid as referred to in Article 107(1) of the Treaty on the Functioning of the European Union The notion of State aid is an objective and legal concept defined by Article 107(1) of the Treaty on the Functioning of the European Union (TFEU). The notice provides clarification on the key concepts relating to the […]
EU Commission & State Aid The EU Commission, in cooperation with States, keeps the ystems of state aid under constant review. The Commission may investigate apparent breaches of State aid rules and has special investigatory powers. States are obliged to submit reports annually to the EU Commission on existing aid schemes. If having given the state opportunity to submit comments, the Commission finds that the […]
Basic Principle The EU Treaty restrict state aid to private enterprises. The prohibition seeks to prevent states from giving an unfair advantage to public sector and private sector enterprises to the detriment of competitors. The purpose is to prevent the distortion of competition for the benefit of consumers The Treaty provides that states shall not enact, maintain or enforce any measures contrary to the competition […]
Regulation on Exempt Aid Commission Regulation in 2014 declares certain categories of aid to be compatible with the internal market in accordance with Articles 107 and 108 of the EU Treaty. It enables EU states to give higher amounts of state aid without prior Commission approval. The Regulation broadens aid thresholds for research and development, risk finance, sports facilities and cultural and heritage projects. It […]