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Ex-ante state aid controlinitial assessment of the planned state aid performed by the Ministry of Finance
Insurance that only legal and compatible state aid is granted in Latvia • Planned new aid measures and planned amendments/ modifications in existing aid measures shall be submitted to the Ministry of Finance for the initial assessment • Assessment is made to identify as to whether planned measure: • qualifies as state aid according to Article 107(1) of the TFEU • includes all the obligatory state aid requirements required by the respective EC state aid rules • shall be notified to the Commission in accordance to Article 108(3) of the TFEU or is exempted from the notification obligation
Elaboration of aid measures:Obligatory State aid requirements to be included in state aid scheme/ individual aid • Objective • Eligible activities • Aid form • Eligible expenditures • Maximum aid amount per project, applicable procedures for big projects (for certain objectives) • Applicable aid intensity • Non-eligible sectors§ors with special requirements • Cumulation of aid • Duration of aid (from – to)
Submission of the notification to the EC Article 108(3)TFEU – applicable for all cases where state aid is granted in accordance to state aid guidelines, frameworks, etc. Exemption from the prior notification Regulation 800/2008 (set of horizontal objectives) – submission of summary information to the EC Regulation 1370/2007 (transport public services – rail, bus, tram) – no procedure to be followed Decision 842/2005 (other public services) - no procedure to be followed Regulation 1998/2006 (de minimis aid) - no procedure to be followed Procedures to be complied with to grant lawful state aid
Submission of the information to the EC (in schema) European Commission Latvian Permanent Representation to EU Ministry of Finance, State Aid Control Department initial assessment Line Ministries Municipalities
Implementation of a state aid measure and control of compliance Controlling of an aid Granting of an aid • Aid scheme/ project • Includes all minimum required requirements • Procedural requirements complied with • respect of notification/ summary • information submission to the EC Legal aid and compatible measure - ex-ante assessment requirement respected • Contract for granting an aid • Includes all minimum required state aid • requirements established in aid scheme/ project • Actual implementation of a project • Done in compliance with the contract and • aid scheme/ project requirements
Different steps of state aid control • Ex-ante state aid control is followed by the implementation of planned state aid measure, where project application is cross-checked for eligibility under state aid measure (scheme/ project) • Ex-post monitoring of state aid is performed by the aid granting authority (on-the-spot, interim and final checks)