Barbara BrandtnerHead of Unit, DG COMP H4Enforcement and Procedural Reform

State Aid Modernisation

Procedural Reform

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OBJECTIVES OF THE MODERNISATION

Support growth-enhancing objectives

SAM COMMUNICATION

Better-prioritised enforcement

Streamlined rules and faster decisions

PROCEDURAL REFORM

Focus on most significant cases

Simplify treatment of measures with little impact

Well substantiated decisions

Respect business-relevant timelines

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SCOPE OF THE PROCEDURAL REFORMWell substantiated

decisionsFocus on most

significant cases

Simplify treatment of measures with little

impact

Respect business-relevant timelines

COMPLAINTS-HANDLINGMARKET INFORMATION

TOOLS/SECTOR INQUIRIES

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HANDLING OF COMPLAINTS

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CURRENT SHORTCOMINGS

Duty of the Commission to investigate all complaints

irrespective of their significance

- High number of complaints/ Long duration- Insufficient focus on the most significant distortions

Very few requirements to put the Commission under the obligation to investigate complaints

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COMPLAINTS

COMPARE - Handling of infringement cases

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ADMISSIBILITY TESTS

• Kept as MARKET INFORMATION

• Could be used for EX-OFFICIO

OBJECTIVES

Improve the quality of complaints

Definition of the concept of complaints

NEW FILTERS

COMPULSORY COMPLAINTS FORM

(Form defined in the Implementing Regulation)

LEGITIMATE INTEREST TO ACT(Interested parties within meaning Art. 1(h) PR)

What happens with the information which does not

pass the admissibility tests ?

COMPLAINTS

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A TRANSPARENT AND FASTER PROCEDURE

Within 2 months : Priority settings

Decision no aid, compatible aid or opening

within 12 months

Preliminary assessment

No reply from the complainant

Decision on no aid, compatible aid or

opening

NEW GROUNDS FOR REJECTION OF COMPLAINTS

BY COLLEGE DECISION TO BE EXPLORED

COMPLAINT DEEMED

WITHDRAWN

Submission of complaints

Reply from the complainant

Non-priority complaints

Priority complaints

NEW

COMPLAINTS

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IMPACT

Reduction of workload for the Member States, the third parties and the Commission

Reduction of the number of complaints

Focus on significant distortions of competition

COMPLAINTS

Commission will keep exclusive competence to assess State aid

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MARKET INFORMATION TOOLS(MIT)

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WHY DO WE NEED MIT?

• Need information from the market to assess: the design and impact of a measure (e.g. crowding out) market benchmarks not available to MS (e.g. IRR, risk

profiling) the situation in other MS/projects subsidised or not

• Best Practices are not enough

NEED TIMELY, RELIABLE AND FACTUALLY

CORRECT INFORMATION FROM THE MARKET

MIT

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HOW WILL MIT BE USED?

FOR WHICH TYPE OF CASES ? Mostly in complex individual cases requiring an in-depth assessment to assess (for instance):

•normal market practice (e.g. State aid in guarantees/loans)

•market failures and /or incentive effect benchmarking

WHAT KIND OF INFORMATION ?

ONLY readily available information such as :

• factual market data and company data (e.g. market shares, profits)

• facts-based analysis (e.g. overcapacity, market growth rate)

MIT

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DESIGNAddressees: Any undertaking, association of undertakings or

other Member States

• Incorrect/ misleading answer• No obligation to reply

SanctionsTypes of requests

• Incorrect/ misleading/ incomplete answer

• Late answer

Simple requests

Commission decisions

• Sanctions for undertakings asked to reply• No sanctions for Member States and public

authorities given duty of sincere cooperation

MIT

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MIT

BILATERAL NATURE OF THE PROCEDURE MAINTAINED

• MS and the Commission will still be the only parties

• No creation of third party ‘rights’MEMBER STATES WILL BE DULY INVOLVED

• Member States will be informed of the scope and content

of the information requests

• Member States will have the right to comment on the

replies received

MIT AND THE ROLE OF MS

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MIT

MIT AFTER THE OPENING OF THE FORMAL INVESTIGATION

MS rights of defence guaranteed

Confidentiality ensured

Duration reduced

Workload limited

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• Reinforced horizontal information to better understand economic impact of State aid

Extended use of existing powers

Legal basis for sector inquiries (SI)

HOW TO COLLECT SECTORAL INFORMATION ?

• Could be useful in certain sectors such as airlines, railways, ports, risk capital

Rationale:

SI

SECTORAL INFORMATION

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• Initial market analysis using existing tools

• Solid indications of State aid issues in several MS needed

before launching a SI

• Publicly available information, not the scope of SI

• Sector inquiries = proportionate to market distortion

• Once a SI is launched, MIT will be used

SI

SECTOR INQUIRIES

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Reduce administrative burden for MS

More transparent, accurate and swift information flows

Better motivated decisions and equality of treatment

Share market information available with Member States

Reduce duration and free up resources

IMPACT

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Thank you for your attention !