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DG Competition State aid Modernisation Changing the balance of State aid control Miek Van der Wee European Commission DG Competition Northern Ireland State.

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Presentation on theme: "DG Competition State aid Modernisation Changing the balance of State aid control Miek Van der Wee European Commission DG Competition Northern Ireland State."— Presentation transcript:

1 DG Competition State aid Modernisation Changing the balance of State aid control Miek Van der Wee European Commission DG Competition Northern Ireland State aid Awareness Seminar 16 September 2014

2 DG Competition SAM – Main drivers ■Europe 2020: Targeting EU policies at fostering smart, sustainable and inclusive growth ■Economic & financial crisis  Enforcement challenges ► Need to modernise rules to protect effectiveness of SA policy (faster decision making, focus on most distortive aid, strengthen economic reasoning, …) ► Budgetary constraints: Focus on quality public expenditure ■Expiry of SA instruments in 2013 (GBER, guidelines) ■New programming cycle for ESI Funds

3 DG Competition SAM – Main objectives ■Foster growth in a competitive internal market ► Facilitate the granting of “good aid” (Europe 2020) ► Discourage ineffective or counter-productive aid ■Focus enforcement on cases with biggest impact ► Less ex ante control of potentially less distortive aid ► Emphasis on ex post monitoring, evaluation & transparency ■Streamline rules and speed up decisions ► Simplification and harmonisation of rules ► Improvement of procedures

4 DG Competition SAM – Building blocks Notice on notion of aid Review De Minimis Reg. New Enabling Regulation New GBER Review major guidelines Review Procedural Reg. SAM Principles  Clarification & simplification  Common compatibility criteria  Strengthened partnership with MS

5 DG Competition SAM – Legislative programme - 1 Legal instruments Procedural RegulationOJ 31/07/2013 Enabling RegulationOJ 22/07/2013 De Minimis RegulationOJ 24/12/2013 General Block Exemption RegulationOJ 17/06/2014 Broadband guidelinesOJ 26/01/2013 Regional aid guidelinesOJ 23/07/2013 Short term creditOJ 19/12/2012 CinemaOJ 15/11/2013 Risk financeOJ 15/01/2014

6 DG Competition SAM – Legislative programme - 2 Legal instruments Airports and airlinesOJ 04/04/2014 Energy & EnvironmentOJ 28/06/2014 R&D&IOJ 27/06/2014 Important Projects of Common EU InterestOJ 20/06/2014 Rescue & restructuringOJ 31/07/2014 Evaluation (Staff paper)28/05/2014 Transparency (Communication)21/05/2014 Notion of aid For overview of all revised SAM texts:

7 DG Competition notified (guidelines/Treaty) 7 Still to be notified (guidelines/Treaty) Exemption areas GBER extension (new types and categories) GBER extension (notification & intensity threshold) GBER extension Type of aid (aid amount ) Notified aid Block-exempted De minimis De Minimis Impact 1: Facilitate granting "good aid"

8 DG Competition Impact 1: Facilitate granting "good aid" New categories of aid brought under GBER: ■Aid to compensate natural disaster damage ■Operating aid in remote & in sparsely populated areas ■Individual regional aid measures ■Aid for urban development projects in assisted regions ■Aid for broadband infrastructure ■Aid for start-ups, for SME financing, for innovation clusters & research infrastructure ■Aid for culture and heritage conservation, for sport and multifunctional recreational facilities ■Aid for the remediation of contaminated sites ■Aid for renewables and district heating ….

9 DG Competition Impact 1: Facilitate granting "good aid" Aid amountsAid measures 2/3 aid amounts and 3/4 aid measures could be "GBER-ised'

10 DG Competition Impact 2: Stricter control of "bad aid" Assessment of potentially more distortive types of aid on the basis of "common assessment criteria": ► contribution to a well-defined objective of common interest ► need for state intervention ► appropriateness of the aid measure ► incentive effect ► proportionality of the aid (aid limited to the minimum necessary) ► avoidance of undue negative effects on competition and trade between Member States

11 DG Competition Impact 3: Ex Ante  Ex Post  Transparency ■Smaller proportion of aid will be scrutinised by EC ► Aid under GBER ► Awards under approved aid schemes ■Shift from ex ante control to : ► Ex Post Evaluation ► Ex Post Monitoring ► Transparency

12 DG Competition Impact 3: Ex Post - Evaluation ■Purpose: Improve quality of public expenditure ■Scope: Large schemes ■Evaluation questions: ► Did the aid alter behaviour of beneficiaries? ► Were the objectives of the aid achieved? ■Independent evaluator Assessment and approval Design Evaluation Monitoring Implemen- tation

13 DG Competition Impact 3: Ex post - Monitoring ■Ex Post Monitoring since 2006 ► 221 schemes monitored ► 28% of monitored schemes found to be problematic ■Widening of GBER will be accompanied by increased monitoring efforts

14 DG Competition Impact 3: Ex Post - Transparency ■Purpose: ► Improve accountability of public spending ► Promote compliance (enables firms to verify legality of aid granted to competitors) ■Publication on Central/Regional website of ► Full text of aid scheme or aid granting decision ► Identity of granting authority ► Info on individual aid awards > € 500,000: Identity of beneficiary, aid amount, date of granting, NUTS 3 region, NACE code

15 DG Competition Impact 4: New Partnership with MS ■Extension of GBER  Increased responsibility for MS ► Implementation aid measures without ex ante control by EC ► Need to ensure effective control at national level ■Strengthen EC-MS partnership ► Country Coordinator Network in COMP ► High level Country visits  Portfolio approach ► Guidance on new rules via share platform ECN-ET ► High Level Forum + Working Groups ● WG on SAM implementation (GBER, Best Practices…)) ● WGs on specific topics (EEAG)

16 DG Competition Thank you Any questions?


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