State aid and EU funding - Are they compatible State aid and EU funding - Are they compatible? Which difficulties do Member States authorities face when implementing the rules? Brussels, 25th June 2018

Different policy objectives Two sets of rules Different policy objectives Doubled obligations

Identified issues Different policy objectives Doubled obligations Two sets of rules Different source of funding = different requirements ESIF vs. centrally managed funds Funding gap vs. aid intensity Narrow posibility of using simplified costs method Different policy objectives Inability of financing the measures approved by the EC (DG REGIO) within the operational programmes due to lack of compatibility criteria for state aid Doubled obligations Two notification procedures Duplicated evaluations, audits and monitoring checks

Issues Results Two sets of rules Different treatment of similar projects due to the source of funding Narrow posibility of using simplified costs method Funding gap vs. aid intensity Incoherent definitions (eligible costs, innovations) Ambiguity of state aid rules Results Rivalry between programmes Cohesion policy funding less attractive than centrally managed funds because of state aid Administrative burdens Lack of legal certainty and clarity Discrimination against beneficiaries who are large enterprises Double duty

Different policy objectives Energy-inefficient heating and cooling systems Lack of compatibility criteria for state aid Inability of finacing measures approved by the EC POs approved by the EC (DG REGIO) Changing state aid rules during programming period (DG COMP) Resulting in: Prolonging notification procedures Risk of not spending the allocated funds Energy sector excluded from the regional aid

Doubled obligations DG COMP DOUBLED DG REGIO Notifications Evaluations Audits Notifications Evaluations Monitoring checks

Different policy objectives Two sets of rules Different policy objectives Doubled obligations HARMONIZATION, COORDINATION, SIPLIFICATION

Mutual acknoledgement of the evaluations and audits results Harmonising or coordinating of the notification process for major projects that require the approval of state aid Mutual acknoledgement of the evaluations and audits results Reviewing and unifying definitions Harmonising the duration of state aid rules with programming periods for ESIF (including N+ principle) Fast track for interpretation of state aid rules for ESIF projects Providing initial verification in terms of state aid when approving operational programs Increasing the possibility of setting costs with a simplified method

Thank you www.uokik.gov.pl Katarzyna Pamuła-Wróbel Deputy Director Department of State Aid Monitoring Poland www.uokik.gov.pl