State aid actual situation, proposition de lege ferenda

1. State aidactual situation, proposition de lege ferenda Kamil Rudolecký vice chairman Office for the Protection of Competition 16.4.2009 Úřad pro ochranu hospodářské soutěže

2. Stabilization? • decrease of total amount of SA (approx. 0,5 % GDP) and its horizontal focus • adoption of „skill to read“ inexplicit European rules • increase of state aid awareness • elimination of negativism on providers side Úřad pro ochranu hospodářské soutěže

3. Role of the Office in SA area • The Office disposes of: • general overview of the SA situation in the Czech Republic • knowledge of the history of SA provision, including „thesensitive areas“ • continuity of approach • contact lists • although without decisive powers relatively high level of informal authority Úřad pro ochranu hospodářské soutěže

4. Current focus • measures and programs in the time of economic crisis • state aid questions related to structural funds, transport, public health service, internet, privatization conditions • services of general economic interest Úřad pro ochranu hospodářské soutěže

5. for the use … • database of current EC and court decisions – easy orientation according to specific topics • maximal use of GBER and economic crisis measures • legal formalism free approach to assessment of SA and market disturbance Úřad pro ochranu hospodářské soutěže

6. Role of the national courts • Commission Notice on the Enforcement of State Aid Law by National Courts– refers to previous one from 1995 • Private enforcement = effective control of SA • used also in the situation when SA declared compatible by EC • Function: prevention of SA realization, SA recovery, damages, interim measures, interest recovery Úřad pro ochranu hospodářské soutěže

7. Situation in the Czech Republic • low SA legislature awareness by the courts – limited use only (cooperative societies) • claimants approach primarily EC or the Office • use of so called „competition advocacy“ • negative approach of the courts in the past • educational programs for the judges (cooperation with the Judge Union) Úřad pro ochranu hospodářské soutěže

8. Proposals de - lege ferenda • more decentralization of EC powers – decision making on national level with high binding force of community legal acts towards member states • EC – mainly control body • higher level of codification – e.g. in the area of SGEI (Altmark, Commission decision 2005/842/ES, Commission Framework C 297, 29.11.2005) • Clear distinction between national and community jurisdiction Úřad pro ochranu hospodářské soutěže

9. Proposals de - lege ferenda • establishment of cooperation platform for member states as a constructive opposition towards EC (resolution of problematic programs from the time of 15 member states) • initiation of establishment of one centralized unit within all member states • introduction of register of de minimis aid in all member states • shorter time for procedure before EC – measures adopted in the times of economic crisis show the possibility for improvement- the Czech Rep. welcomes the proposals such as Note of Commission on Simplified Procedure, Best Practices Code including new methodology for notification procedure Úřad pro ochranu hospodářské soutěže

10. Amendment of the Act nr. 215/2004 • expected to be adopted during this year - obligatory consultation with the Office /opinion within 5 days/, • register of de minimis aid, • more clarification on rules for penalization • obligation to recover illegal aid , • definition of the role of Ministry of Agriculture Úřad pro ochranu hospodářské soutěže

11. . Thank you Úřad pro ochranu hospodářské soutěže