State aid actual situation, proposition de lege ferenda

1
State aidactual situation, proposition de
lege ferenda

• Kamil Rudolecký
• vice chairman
• Office for the Protection of Competition
• 16.4.2009

2
Stabilization?

• decrease of total amount of SA (approx. 0,5
  GDP) and its horizontal focus
• adoption of skill to read inexplicit European
  rules
• increase of state aid awareness
• elimination of negativism on providers side

3
Role of the Office in SA area

• The Office disposes of
• general overview of the SA situation in the Czech
  Republic
• knowledge of the history of SA provision,
  including the sensitive areas
• continuity of approach
• contact lists
• although without decisive powers relatively high
  level of informal authority

4
Current focus

• measures and programs in the time of economic
  crisis
• state aid questions related to structural funds,
  transport, public health service, internet,
  privatization conditions
• services of general economic interest

5
for the use

• database of current EC and court decisions easy
  orientation according to specific topics
• maximal use of GBER and economic crisis measures
• legal formalism free approach to assessment of SA
  and market disturbance

6
Role of the national courts

• Commission Notice on the Enforcement of State Aid
  Law by National Courts refers to previous one
  from 1995
• Private enforcement effective control of SA
• used also in the situation when SA declared
  compatible by EC
• Function prevention of SA realization,
• SA recovery,
• damages,
• interim measures,
• interest recovery

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Situation in the Czech Republic

• low SA legislature awareness by the courts
  limited use only (cooperative societies)
• claimants approach primarily EC or the Office
• use of so called competition advocacy
• negative approach of the courts in the past
• educational programs for the judges (cooperation
  with the Judge Union)

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Proposals de - lege ferenda

• more decentralization of EC powers decision
  making on national level with high binding force
  of community legal acts towards member states
• EC mainly control body
• higher level of codification e.g. in the area
  of SGEI (Altmark, Commission decision
  2005/842/ES, Commission Framework C 297,
  29.11.2005)
• Clear distinction between national and community
  jurisdiction

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Proposals de - lege ferenda

• establishment of cooperation platform for member
  states as a constructive opposition towards EC
  (resolution of problematic programs from the time
  of 15 member states)
• initiation of establishment of one centralized
  unit within all member states
• introduction of register of de minimis aid in all
  member states
• shorter time for procedure before EC measures
  adopted in the times of economic crisis show the
  possibility for improvement- the Czech Rep.
  welcomes the proposals such as Note of Commission
  on Simplified Procedure, Best Practices Code
  including new methodology for notification
  procedure

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Amendment of the Act nr. 215/2004

• expected to be adopted during this year
• - obligatory consultation with the Office
  /opinion within 5 days/,
• register of de minimis aid,
• more clarification on rules for penalization
• obligation to recover illegal aid ,
• definition of the role of Ministry of Agriculture
  

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.

• Thank you