State aid policy reform process

AER Reaction to the EC State Aid Action Plan

The AER Presidium has adopted on 12th September 2005 an initial position of the Assembly of European Regions on the EC Action Plan on state aid. A reaction to the guidelines on cohesion were also adopted on that occasion.

Regional reactions to the Action Plan

The European Commission launches a consultation on its State Aid Action Plan

The European Commission is currently planning an overall reform of EU state aid policy. This reform is deeply embedded in the relaunching process of the Lisbon strategy, in which the control of state aid plays an important role.

The first implemented measures of the State Aid Action Plan were adopted by the EC on 15 July. These measures included a Commission Decision and a Community Framework for state aid provided in the form of public service compensation. These documents aimed at clarifying the conditions under which compensation to companies for the provision of public services are compatible with state aid rules.

On 15 July, the EC's competition services also circulated draft guidelines on how to apply EC Treaty state aid rules to Member States' regional aid for 2007-2013. The EC intends to adopt the Regional Aid Guidelines 2007-2013 before the end of 2005.

Later this year the EC will present a Communication on State aid and Innovation, and will revise the Community Framework for Research and Development.

The overall idea promoted by the European Commission in this reform process is to have ‘less and better-targeted state aids', as stated in a consultation paper published on 7 June.

The reform of the EU rules on state aid, and regional state aid in particular, can therefore have a tremendous impact on the Regions. Some phasing out Regions, for example, and Regions facing the statistical effect have already voiced their concern.
 

What if these Regions, which soon will no longer substantially benefit from EU support, cannot get regional state aid due to the reform?

Will the suggested reform, which aims at limiting and better targeting aid, not be contradictory to the objective of social, economic and territorial cohesion in the EU?

Will it allow for a ‘high level of investment and ensure a reduction in disparities', as stated in the consultation paper?

Aware of the stakes of this reform, the EC has decided to launch a consultation. The basis for this consultation is the aforementioned paper entitled ‘State aid action plan – Less and better targeted state aids: A roadmap for state aid reform 2005-2009'.

The AER is still very interested in receiving your Region's reaction to this document.

Please send this reaction to:
Agnès Ciccarone, Executive Secretary to Committee C, Fax: + 33 (0) 3 69 20 13 18

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