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:
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
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
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
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
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
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: http://ec.europa.eu/competition/state_aid/modernisation/index_en.html
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"
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 ….
DG Competition Impact 1: Facilitate granting "good aid" Aid amountsAid measures 2/3 aid amounts and 3/4 aid measures could be "GBER-ised'
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
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
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
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
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
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)