State aid modernisation review of the block exempted aid
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State Aid Modernisation Review of the Block Exempted aid. Carles Esteva Mosso / Nicola Pesaresi DG Competition. AGENDA. Role and scope for block-exemptions in the State aid Modernisation Strengthened cooperation with Member States for a better ex-ante control

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State Aid Modernisation Review of the Block Exempted aid

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State aid modernisation review of the block exempted aid

State Aid ModernisationReview of the Block Exempted aid

Carles Esteva Mosso / Nicola Pesaresi

DG Competition


Agenda

AGENDA

Role and scope for block-exemptions in the State aid Modernisation

Strengthened cooperation with Member States for a better ex-ante control

First proposal for revision of the block exempted aid


The gber today

The GBER today

  • More than 2000 measures, sincemid 2008.

  • 66% of all aidmeasures = 21% of total aidin 2011

  • SME, training, employment, R&D, risk capital, environment, regionalaid.


Role and scope of the gber within sam

Role and scope of the GBER within SAM

simplify the administrative treatment of well-designed measures of relatively low amounts of aid and limited competition distortions

facilitate granting of "good aid" in line with EU 2020, contributing to growth and jobs

focus state aid enforcement on the most distortive cases


How to achieve the sam objectives with the gber

How to achieve the SAM objectives with the GBER?

Extension of the scope of the GBER towards more "good aid". This can be done in 2 steps:

1° Step: review the GBER

greater simplification and more proportionate enforcement

better design the aid measures to ensure that State aid is effective and efficient

introduce new measures under the existing categories

But the scope of the extension of the GBER is rather limited (all categories already used)

Objective: End 2013


How to achieve the sam objectives with the gber1

How to achieve the SAM objectives with the GBER?

2° Step: Extend the scope of the Enabling Regulation

Introduction into the GBER of new categories of aid, not yet covered by the Enabling Regulation (ER)

Commission proposal to the Council to revise the ER

The enlarged scope would include categories that could be quickly included into the GBER, as well as other categories that would be integrated gradually, when sufficient experience is acquired

Objective: New Council Regulation by End 2013


2 strengthened cooperation with member states for a better compliance

2. Strengthened cooperation with Member States for a better compliance


Co operation today lessons from comp monitoring

Co-operation today: lessons from COMP monitoring

89% of aid is granted through approved aid schemes or block-exempted measures

Monitoring shows difficulties in a large set of cases : issues prima facie raised in 23 out of 50 cases and 7 out of 14 GBER schemes

Wrong interpretation of certain rules

Some compatibility conditions not complied with

Existing aid schemes not adapted to new rules

Difficulties due to several reasons:

Unclear provisions, imprecise guidance

Lack of experience, dispersion of competences

Lack of incentives, conflicts of interest


Way forward for a better system

Way forward for a better system

better co-operate with MS to establish a framework that allows further extensions of the GBER

ensure better ex-ante compliance & ex-post evaluation at national level

design a win-win proposal


Extension of gber requires increased responsibility of ms

Extension of GBER requires increased responsibility of MS

Premise: No change in the Treaty competences

Commission remains the exclusive guardian of aid compatibility

Possible principles for a new system:

No harmonisation of national rules: respect of national institutional prerogatives

Building on best practices at national level

National authorities with sufficient capacity and independence could carry out additional tasks to improve compliance (GBER checks)


Member states best practices

Member States best practices

Other national bodies

National Competition Authorities

Hungary: the State Aid Monitoring Office is also empowered to assess State aid measures falling under de minimis and GBER

Denmark: the NCA can take decisions, issue injunctions and order recovery of domestic State aid based on rules very similar to the EU ones

Poland: the NCA issues formal opinions on draft legislation, upon request from national Parliament

Slovenia: the State Aid Monitoring Department is (i) coordinating the notification procedure and guaranteeing the compliance of draft state aid notifications with the applicable rules, (ii) drafting binding opinions concerning the compliance of block exempted and de minimis measures

Italy: the NCA bears the obligation to issue an opinion concerning the existence of appropriate and sufficient reasons to attribute exclusive rights and the accuracy of the procedure chosen as to the organisation of in-house public services; the NCA can also appeal any act of a public administration which is contrary to national or EU competition law

Cyprus: the Office of the Commissioner for State aid control issues legally binding decisions on the compatibility with EU State aid rules of draft measures adopted on the basis of GBER.

Spain: the NCA issues opinions on the impact on competition of (draft) State aid measures


Design a win win proposal

Design a win-win proposal

Efficiency at MS level

granting authorities to take greater responsibility in shaping good state aid policy upfront, in their own interest

MS to pursue better quality public finance

faster case handling and decisions

Reduces ex-post problems with monitoring and recovery

Efficiency at Commission level

better State aid control

better quality notifications

safely consider widening the scope of the GBER

greater priority setting and focus on what matters most at the EU level


3 initial proposals for revision

3. Initial proposals for revision


Orientations for a revised gber

Orientations for a revised GBER

  • greater simplification and more proportionate enforcement

  • Better promotion of Europe 2020 objectives

    • Promote effective public spending

  • better quality of public finance and better focus on the measures that are more likely to impact onthe internal market

    • Promote efficient public spending


Orientations for a revised gber1

Orientations for a revised GBER

  • greater simplification and more proportionate enforcement

    • consistency with guidelines/Key assessment criteria

    • well-designed measures: scope, incentive effect, eligible costs, aid intensities, limited negative effects

  • Better promotion of Europe 2020 objectives

    • enlarge scope to new measures pro-growth and jobs within existing categories (regional, SMEs, environmental, R&D, employment, training)


Orientations for a revised gber2

Orientations for a revised GBER

  • better quality of public finance and better focus on most distortive measures

    • Schemes may be limited in budget, duration, types of beneficiaries

    • MS to carry out independent ex-post evaluation of schemes

    • credible sanctioning system in case of non-compliance


Initial proposals for enlargement of the er

Initial proposals for enlargement of the ER

Enlarged list of aid categories which will be further specified and actually block-exempted in future GBER revisions (after 2013)

Enlargement of the scope would:

Increase efficiency by allowing to focus more on the most distortive cases

Increase simplification by enlarging the possibilities to extend the scope of the GBER to cases with limited distortive effect and a positive contribution to EU 2020


Initial proposals for enlargement of the er1

Initial proposals for enlargement of the ER

Communication May 8th :

"Those new types of aid which could be covered by the Enabling Regulation could include for instance: aid granted to culture; aid to make good the damage caused by natural disasters: aid to (partly) EU-funded projects such as JESSICA; and others".

For discussion


Further modifications of the er

Further modifications of the ER

Some minor transparency and procedural simplifications could be envisaged:

Transparency simplifications

Publication of the GBER information sheets in the Official Journal replaced by publication on the Commission's website

Procedural simplifications to align with the current practice

Publication of a draft Regulation on the Commission's website instead of the Official Journal, at the same time as the consultation of the Advisory Committee (not after)


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