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AER TRAINING ACADEMY Brussels,10-11 September 2007

AER TRAINING ACADEMY Brussels,10-11 September 2007. EU. EU funding and State aid Giorgio Perini – Head of FVG Representation in Brussels Rue du Commerce 49 – 1000 Bruxelles. AER Training Academy. Structure of the presentation. EU. Why State aid control is important?

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AER TRAINING ACADEMY Brussels,10-11 September 2007

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  1. AER TRAINING ACADEMYBrussels,10-11 September 2007 EU EU funding and State aid Giorgio Perini – Head of FVG Representation in Brussels Rue du Commerce 49 – 1000 Bruxelles AER Training Academy

  2. Structure of the presentation EU • Why State aid control is important? • When a measure qualifies as State aid (in the sense of Art.87§1 EC Treaty)? • When State aid comes at stake in relation with EU funding? • Main categories of State aid and their material legal basis • Procedural legal basis • On-going developments • Why for bxl-based regional offices to get involved in SA issue? AER Training Academy

  3. Why State aid control is important EU • All economic acitivities (not only unfertakings in the sense of internal law) concerned (also public and not for profit organization) • No room for national competence (the only European Commission is in charge of the evaluation and authorization of SA measures) AER Training Academy

  4. Why State aid is important EU • All policies susceptible to be involved (according to the funding model): • Regional (structural funds) • R,D & I • Environmental • Energy • SGEI • Employment • Financial and fiscal measures • Specific sectors (agriculture, fischeries) AER Training Academy

  5. Why State aid is important EU • State aid control part of competition rules together with antitrust (cartels and abuse of dominance) and mergers • Necessary for the completion of the internal market • In force since the adoption of the EC Treaty but derived rules elaborated mainly from the 80’s onwards AER Training Academy

  6. When a measure qualifies as State aid (in the sense of Art.87§1 EC Treaty)? EU • Basically 4 elements in order for a measure to qualify as State aid: • Transfer of public resources • economic advantage • Selectivity • Effect (actual or potential) on competition and intracommunity exchanges AER Training Academy

  7. When a measure qualifies as State aid (in the sense of Art.87§1 EC Treaty)? EU • Plus the 4,5 element: • Imputability to the State (« Stardust » judgment – C-482/99) AER Training Academy

  8. When a measure qualifies as State aid :general ban and exemptions EU • Measures complying with the 4,5 criteria above are in principle incompatible with the common market, thus prohibited • But at certain conditions and to the extent that they are not contrary to the common interest they can benefit from some exceptions elaborated from the provisions of the Treaty (Art.87§2 and 87§3) AER Training Academy

  9. Overlapping between EU funding and State aid rules EU • In general terms: • Same rules apply: if 4,5 conditions fulfilled EU State aid law to be observed no matter where the money comes from (State, Region, other public bodies or EU – EU funding is public money) • But: • If the money does not go through national or local budgets, imputability criteria is not complied with, hence no State aid AER Training Academy

  10. Overlapping between EU funding and State aid rules EU • To be assessed on a case by case basis: • Normally NO in directly funded EU programs (in particular FP7) • YES when dealing with structural funds • To be seen where financial instruments come at stake (EIB, EIF, risk capital funds, others) AER Training Academy

  11. State aid in Structural Funds programmes EU • Standard clause to be inserted in any ROP stating « any public support under this programme must comply with the procedural and material State aid rules applicable at the point of time when the public support is granted » • It is the responsability of the managing authorities to ensure that this condition is fulfilled AER Training Academy

  12. Most relevant exemptions in the context of Structural Funds operations EU • Art.87,3(a) and (c) elaborated by • Guidelines on National Regional aid for 2007-2013 (OJ C54, of 4.3.2006, p.13) • Regulation n.1628/2006 on the application of Articles 88 and 88 to national regional investments (OJ L302 of 1.11.2006, p.29 AER Training Academy

  13. Most relevant exemptions when State aid to R&D (and innovation) is at stake EU • New R,D&I guidelines (OJ C323 of 30.12.2006, p.1) • Reg.364/2004 x R&D aid limited to SMEs (OJ L63 of 28.2.2004, p.22) • New draft GBER just published on OJ C210 of 8.9.2007 (comments within 1 month) AER Training Academy

  14. Main categories of (legal and compatible) State aid EU • De minimis • Strictu sensu no aid: up to 200.000€ in any 3 year period for each beneficiary • Exempted aid • No obligation of prior notiification and Commission’s approval, minor admin. burdens • Aid subject to prior notification • Standstill clause compulsory; formal notification procedure; Commission’s assessment AER Training Academy

  15. Legality v/s compatibility EU • Aid illegal when put into force in breach of the notification obligation (procedural obligation pursuant to Art.88,3 – standstill clause not complied with) • Aid incompatible where not in compliance with any substantive EU State aid rules AER Training Academy

  16. Main horizontal State aid rules (aim of the aid) EU • Exempted • SMEs (also for R&D) • Training • Employment • National regional aid • SGEI • Subject to prior notification • Environment (and energy: saving and renewables) • Resceu and restructuring of firms in difficulty • SGEI AER Training Academy

  17. Main horizontal State aid rules (form of the aid) EU • Guarantees • Risk capital • Fiscal measures AER Training Academy

  18. procedural legal basis: EU • Reg 659/99 so called «procedural regulation » (OJ L83 of 27.3.1999, p.1) • Reg. 794/2004, so called « implementing regulation » (OJ L140 of 30.4.2004, p.1-134 AER Training Academy

  19. On-going developments EU • Revision of all the material and procedural legal basis of EU State aid controlin the framework of the SAAP (State aid action plan; a road map for 2005-2009 – COM(2005)107 fin of 7.6.2005) AER Training Academy

  20. Which role for bxl-based regional offices? EU AER Training Academy

  21. Which role for bxl-based regional offices: EU • In the implementing phase: • Info on new rules coming into force • prenotification meetings (informal) • Possibly assistance to your mother houses in the drafting of measures implying SA • Notification and evaluation procedures to be looked after • Avoid opening of formal proceedings • Minimize the risk of negative decisions AER Training Academy

  22. Which role for bxl-based regional offices? EU • In the EU law designing phase: • Comment on consultations • Contribute to the MS’s position • Partecipate to multilateral consultations with MS (according to your national organization) • Write the new EU SA rules together with Commission and other MS (and their Regions) AER Training Academy

  23. AER & FVG Region EU thank you all for your kind attention Uff.bruxelles@regione.fvg.it Giorgio.perini@regione.fvg.it AER Training Academy

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