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State Aid The Danish Approach Preben Sandberg Pettersson

State Aid The Danish Approach Preben Sandberg Pettersson. The Danish State Aid Policy. Reduce State Aid Focus on horizontal Aid and market failures National State Aid Coordination Pre-assessment. Questions when using public resources!!. State aid? What kind of aid?

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State Aid The Danish Approach Preben Sandberg Pettersson

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  1. State Aid The Danish Approach Preben Sandberg Pettersson

  2. The Danish State Aid Policy Reduce State Aid Focus on horizontal Aid and market failures National State Aid Coordination Pre-assessment

  3. Questions when using public resources!! • State aid? • What kind of aid? • Conformity with Common market? • How to assess Conformity?

  4. Answer The Commission Treaty, derived Provisions and Case Law European Court of Justice Member States

  5. The challenge for administrations:Conformity with the state aid provisions? • Decentralised process • Insufficient knowledge and overview • Rules, procedures & approval practice • Non-conformity long and difficult process • Not much fun to change adopted initiatives ----------

  6. Improve handling of State aid Cases 4 – 24 months…. ? Implementation Design Pre notification Notification Approval CabChef C’ion DK Initiativ Adoption of DK Initiativ Notification Decision note interservice Drafting Rules / procedures Coordination: Committee/ Secretariat Contact to Commission Dialogue and adaptation Meetings & letters DG Competition /& other services Civil Servants Administration Report Deadlines

  7. Competition Authority Policy, Reporting Coordination & Advice State Aid Committee State Aid Secretariat Public Authorities Ministers/ Ministries Responsibility for notification and conformity Perm Rep European Commission Other Member States

  8. New Danish State Aid approachto coordination and control • 1 January 2007 – obligatory coordination • One single knowledge and advice centre • State Aid Committee and Secretariat • Danish Competition Authority

  9. CoordinationTask of Committee and Secretariat? All levels of Central administration can obtain: • Advice and service on State Aid assessment • Screening / assessment of draft legal acts • Advice and service to – early – contact to Commission services • Advice and service on notifications and procedures Knowledge Centre – Manual/ Hand book

  10. The State Aid Committee • Advisory Committee • Chair: Ministry of Economic and Business Affairs • Members: Ministry of Justice, Ministry of Foreign affairs and Ministry of Finance + File responsible Ministry. • Still single Ministry responsibility to conform with Rules and Procedures

  11. Objectives • Maximum 6 months to get a notified case approved by the Commission if it is based on the recommendation of the Competition Authority or State Aid Committee • No cases should be resolved or judged by the Commission or the ECJ contrary to the advice of the CA or the State Aid Committee

  12. Practicalities?Assessment based on a checklist: • State aid? • Conformity with Treaty Provisions? • Covered by Group exemption? • Notification / approval of the Commission? If State aid then: • Objective, volume, intensity, Coverage, • Beneficiaries, selection process? • Impact on competition and trade • Relevant state aid provisions?

  13. Timing of assessment? • As early as possible • Part of Government draft legal programme • Before inter Governmental coordination through Economy Committee and Coordination Committee • Before Formal Consultation of Stakeholders • Before presentation to Parliament

  14. Questions ? The State aid Day, Brno - Czech Republic, 16 - 17 April 2009

  15. De minimis Aid • State aid manual / hand book • Decentralised procedure • No central register • Obligation to commit beneficiaries to report on aid received from other sources • By letter linked to commitment to provide the aid and before payment

  16. Annual reporting State aid Scoreboard • State aid Secretariat / DCA • Based on data from ministries compared to State budget and account • Continuous update / data failures • Need for much guidance Individual Scheme • Individual Ministry

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