DG Competition State aid Modernisation Changing the balance of State aid control Miek Van der Wee...
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![Page 1: DG Competition State aid Modernisation Changing the balance of State aid control Miek Van der Wee European Commission DG Competition Northern Ireland State.](https://reader036.fdocuments.in/reader036/viewer/2022082421/56649cc45503460f9498d3c6/html5/thumbnails/1.jpg)
DG Competition DG Competition DG CompetitionDG Competition
State aid ModernisationChanging the balance
of State aid control
Miek Van der WeeEuropean CommissionDG Competition
Northern Ireland State aid Awareness Seminar16 September 2014
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DG Competition DG Competition
SAM – Main drivers
■ Europe 2020: Targeting EU policies at fostering smart, sustainable and inclusive growth
■ Economic & financial crisis Enforcement challenges► Need to modernise rules to protect effectiveness of SA
policy (faster decision making, focus on most distortive aid, strengthen economic reasoning, …)
► Budgetary constraints: Focus on quality public expenditure
■ Expiry of SA instruments in 2013 (GBER, guidelines)
■ New programming cycle for ESI Funds
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DG Competition DG Competition
SAM – Main objectives
■ Foster growth in a competitive internal market► Facilitate the granting of “good aid” (Europe 2020)
► Discourage ineffective or counter-productive aid
■ Focus enforcement on cases with biggest impact► Less ex ante control of potentially less distortive aid
► Emphasis on ex post monitoring, evaluation & transparency
■ Streamline rules and speed up decisions► Simplification and harmonisation of rules
► Improvement of procedures
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DG Competition DG Competition
SAM – Building blocks
Notice on notion of aid
Review De Minimis Reg.
New Enabling RegulationNew GBER
Review major guidelines
Review Procedural Reg.
SAM Principles Clarification &
simplification Common
compatibility criteria Strengthened
partnership with MS
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DG Competition DG Competition
SAM – Legislative programme - 1
Legal instruments Procedural Regulation OJ 31/07/2013
Enabling Regulation OJ 22/07/2013
De Minimis Regulation OJ 24/12/2013
General Block Exemption Regulation OJ 17/06/2014
Broadband guidelines OJ 26/01/2013
Regional aid guidelines OJ 23/07/2013
Short term credit OJ 19/12/2012
Cinema OJ 15/11/2013
Risk finance OJ 15/01/2014
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DG Competition DG Competition
SAM – Legislative programme - 2
Legal instruments Airports and airlines OJ 04/04/2014
Energy & Environment OJ 28/06/2014
R&D&I OJ 27/06/2014
Important Projects of Common EU Interest OJ 20/06/2014
Rescue & restructuring OJ 31/07/2014
Evaluation (Staff paper) 28/05/2014
Transparency (Communication) 21/05/2014
Notion of aid
For overview of all revised SAM texts: http://ec.europa.eu/competition/state_aid/modernisation/index_en .html
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DG Competition DG Competition
notified (guidelines/Treaty)
7
Still to be notified (guidelines/Treaty)
Exemption areas
GBER extension(new types and categories)
GBER extension(notification & intensity threshold) GBER extension
Type of aid
(a
id a
mo
un
t)
Notified aid
Block-exempted
•De minimis
De Minimis
Impact 1: Facilitate granting "good aid"
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DG Competition DG Competition
Impact 1: Facilitate granting "good aid"
New categories of aid brought under GBER:■ Aid to compensate natural disaster damage■ Operating aid in remote & in sparsely populated areas■ Individual regional aid measures■ Aid for urban development projects in assisted regions■ Aid for broadband infrastructure■ Aid for start-ups, for SME financing, for innovation clusters &
research infrastructure■ Aid for culture and heritage conservation, for sport and
multifunctional recreational facilities■ Aid for the remediation of contaminated sites■ Aid for renewables and district heating ….
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DG Competition DG Competition
Impact 1: Facilitate granting "good aid"
Aid amounts Aid measures
2/3 aid amounts and 3/4 aid measures could be "GBER-ised'
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DG Competition DG Competition
Impact 2: Stricter control of "bad aid"
Assessment of potentially more distortive types of aid on the basis of "common assessment criteria":
► contribution to a well-defined objective of common interest
► need for state intervention
► appropriateness of the aid measure
► incentive effect
► proportionality of the aid (aid limited to the minimum necessary)
► avoidance of undue negative effects on competition and trade between Member States
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DG Competition DG Competition
Impact 3: Ex Ante Ex Post Transparency
■ Smaller proportion of aid will be scrutinised by EC► Aid under GBER
► Awards under approved aid schemes
■ Shift from ex ante control to :► Ex Post Evaluation
► Ex Post Monitoring
► Transparency
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DG Competition DG Competition
Impact 3: Ex Post - Evaluation
■ Purpose:
Improve quality of public expenditure
■ Scope: Large schemes
■ Evaluation questions:► Did the aid alter behaviour of
beneficiaries?
► Were the objectives of the aid achieved?
■ Independent evaluator
Assessment and approval
Design
Evaluation
Monitoring
Implemen-tation
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DG Competition DG Competition
Impact 3: Ex post - Monitoring
■ Ex Post Monitoring since 2006► 221 schemes monitored
► 28% of monitored schemes found to be problematic
■ Widening of GBER will be accompanied by increased monitoring efforts
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DG Competition DG Competition
Impact 3: Ex Post - Transparency
■ Purpose:► Improve accountability of public spending
► Promote compliance (enables firms to verify legality of aid granted to competitors)
■ Publication on Central/Regional website of ► Full text of aid scheme or aid granting decision
► Identity of granting authority
► Info on individual aid awards > € 500,000: Identity of beneficiary, aid amount, date of granting, NUTS 3 region, NACE code
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DG Competition DG Competition
Impact 4: New Partnership with MS
■ Extension of GBER Increased responsibility for MS► Implementation aid measures without ex ante control by EC
► Need to ensure effective control at national level
■ Strengthen EC-MS partnership► Country Coordinator Network in COMP
► High level Country visits Portfolio approach
► Guidance on new rules via share platform ECN-ET
► High Level Forum + Working Groups● WG on SAM implementation (GBER, Best Practices…))● WGs on specific topics (EEAG)
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DG Competition DG Competition DG CompetitionDG Competition
Thank youAny questions?