1. State aid evaluation Rodrigo PEDUZZI
Unit A.3 State aid Strategy, DG Competition
Evaluation Network meeting Brussels, 15 January 2015

2. State aid modernisation
Launched in 2012, now essentially completed
Comprehensive reform of State aid rules
3 objectives:
Enhance effectiveness of aid, in line with Europe 2020 objectives, and limit distortions of trade and competition
Prioritise enforcement on cases/schemes that have a significant impact on the internal market
Simplification of rules

3. Most State aid is granted through schemes
87% of aid (in 2013) provided through schemes, either block-exempted or approved ex ante
Very limited ex post assessment of impact
Mostly formal rather than substantial assessment of incentive effect

4. Evaluation: 'Closing' the State aid cycle
Objectives of State aid evaluation :
Assessing whether the scheme was effective in achieving the direct objective for which it was introduced, (i.e. did it change the behaviour of the beneficiary, and to which extent?)
Detecting possible indirect effects of the scheme (e.g. spill-over effects on the activity of other firms, general effects on regional growth, etc.);
Addressing the issues of proportionality and appropriateness of the chosen aid instrument.
Assessment and approval
Design
Evaluation
Monitoring
Implemen-tation
did the public intervention work?”, “why and how did it work?”, “did the positive impacts outweigh the negative ones?”.

5. Opportunities and challenges
Collect evidence on actual impact of State aid
Contribute to a better informed decision-making, by the Member States and by the Commission
Help allocate scarce resources more efficiently
Need to facilitate ownership from Member States
Ensure equal treatment and the necessary flexibility
Implement evaluation for block-exempted schemes

6. Scope of evaluation In the GBER:
Only for selected aid categories (e.g. regional aid).
Only for large aid schemes, with an average annual budget exceeding €150 million (a handful each year).
For such schemes, the exemption is limited to an initial period of six months following their entry into force.
The Commission, under certain conditions, may extend this period upon approval of an evaluation plan.
In the guidelines (Broadband, Regional, Risk finance, Aviation, R&D&I, Environment and Energy):
Large aid schemes, novel schemes, schemes affected by significant markets, technology or regulatory changes

7. Evaluation plan - Content
For schemes subject to evaluation, Member States have to notify to the Commission an evaluation plan, which should contain at least the following elements:
Objectives of the aid scheme to be evaluated
Evaluation questions
Result indicators
Envisaged methods
Data collection
Timeline
The body conducting the evaluation (or the selection principles)
Publicity of evaluation
 Methodological guidance in Commission Staff Working Document:
ethodology_en.pdf

8. Implementation since July 2014
- Template for notification of evaluation plans - FAQ available on DG COMP website - First two decisions under GBER adopted in December (large regional aid schemes, UK and CZ) - Two other regional aid cases in the pipeline - New cases in other areas (R&D, energy, broadband) - Ongoing discussions with Member States - Exploring synergies (e.g. with ESIF experts) - Advocacy - Eventually, policy recommendations on future schemes and State aid rules