Presentation on theme: "State aid Modernisation Changing the balance of State aid control"— Presentation transcript:
1 State aid Modernisation Changing the balance of State aid control Northern Ireland State aid Awareness Seminar16 September 2014Miek Van der WeeEuropean CommissionDG Competition
2 SAM – Main driversEurope 2020: Targeting EU policies at fostering smart, sustainable and inclusive growthEconomic & financial crisis Enforcement challengesNeed 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 expenditureExpiry of SA instruments in 2013 (GBER, guidelines)New programming cycle for ESI Funds
3 SAM – Main objectives Foster growth in a competitive internal market Facilitate the granting of “good aid” (Europe 2020)Discourage ineffective or counter-productive aidFocus enforcement on cases with biggest impactLess ex ante control of potentially less distortive aidEmphasis on ex post monitoring, evaluation & transparencyStreamline rules and speed up decisionsSimplification and harmonisation of rulesImprovement of procedures
4 SAM – Building blocks Notice on notion of aid SAM Principles Review De Minimis Reg.SAM PrinciplesClarification & simplificationCommon compatibility criteriaStrengthened partnership with MSNew Enabling RegulationNew GBERReview major guidelinesReview Procedural Reg.
6 SAM – Legislative programme - 2 Legal instrumentsAirports and airlinesOJ 04/04/2014Energy & EnvironmentOJ 28/06/2014R&D&IOJ 27/06/2014Important Projects of Common EU InterestOJ 20/06/2014Rescue & restructuringOJ 31/07/2014Evaluation (Staff paper)28/05/2014Transparency (Communication)21/05/2014Notion of aidFor overview of all revised SAM texts: .html
7 Impact 1: Facilitate granting "good aid" Still to be notified (guidelines/Treaty)notified (guidelines/Treaty)GBER extension(notification & intensity threshold)GBER extensionExemptionareasGBERextension(new types andcategories)Notified aidBlock-exemptedDe minimis(aid amount)De MinimisType of aid
8 Impact 1: Facilitate granting "good aid" New categories of aid brought under GBER:Aid to compensate natural disaster damageOperating aid in remote & in sparsely populated areasIndividual regional aid measuresAid for urban development projects in assisted regionsAid for broadband infrastructureAid for start-ups, for SME financing, for innovation clusters & research infrastructureAid for culture and heritage conservation, for sport and multifunctional recreational facilitiesAid for the remediation of contaminated sitesAid for renewables and district heating ….
9 Impact 1: Facilitate granting "good aid" 2/3 aid amounts and 3/4 aid measures could be "GBER-ised'Aid amountsAid measures
10 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 interestneed for state interventionappropriateness of the aid measureincentive effectproportionality of the aid (aid limited to the minimum necessary)avoidance of undue negative effects on competition and trade between Member States
11 Impact 3: Ex Ante Ex Post Transparency Smaller proportion of aid will be scrutinised by ECAid under GBERAwards under approved aid schemesShift from ex ante control to :Ex Post EvaluationEx Post MonitoringTransparency
12 Impact 3: Ex Post - Evaluation Purpose:Improve quality of public expenditureScope: Large schemesEvaluation questions:Did the aid alter behaviour of beneficiaries?Were the objectives of the aid achieved?Independent evaluatorAssessment and approvalDesignEvaluationMonitoringImplemen-tation
13 Impact 3: Ex post - Monitoring Ex Post Monitoring since 2006221 schemes monitored28% of monitored schemes found to be problematicWidening of GBER will be accompanied by increased monitoring efforts
14 Impact 3: Ex Post - Transparency Purpose:Improve accountability of public spendingPromote compliance (enables firms to verify legality of aid granted to competitors)Publication on Central/Regional website ofFull text of aid scheme or aid granting decisionIdentity of granting authorityInfo on individual aid awards > € 500,000:Identity of beneficiary, aid amount, date of granting, NUTS 3 region, NACE code
15 Impact 4: New Partnership with MS Extension of GBER Increased responsibility for MSImplementation aid measures without ex ante control by ECNeed to ensure effective control at national levelStrengthen EC-MS partnershipCountry Coordinator Network in COMPHigh level Country visits Portfolio approachGuidance on new rules via share platform ECN-ETHigh Level Forum + Working GroupsWG on SAM implementation (GBER, Best Practices…))WGs on specific topics (EEAG)