Humbert DRABBE Director Directorate H DG Competition State Aid Modernisation Compatibility assessment and revision of State aid guidelines.

Slides:



Advertisements
Similar presentations
Community Strategic Guidelines DG AGRI, October 2005 Rural Development.
Advertisements

Anna NYKIEL-MATEO Policy Officer DG COMP A3 27/11/2012
EU SME policy The “Small Business Act” for Europe and its Review
The new LIFE Programme INFO Day Brussels 12/5/2014 Antongiulio Marin Policy officer – DG CLIMA.
Community Strategic Guidelines DG AGRI, November 2005 Rural Development.
Carles ESTEVA MOSSO Director, Policy and Strategy DG Competition Brussels, 6 March 2012 Session 1: Challenges for State aid control in the present context.
State aid Modernisation Changing the balance of State aid control
„South East Europe Programme” as a financing opportunity for projects in the Danube region and complementarity to other instruments COMPLEMENTARITY OF.
The General Block Exemption and De Minimis Regulations
The EU Emissions Trading System (ETS) Rationale and Lessons learnt Artur Runge-Metzger Head of International Climate Negotiations, European Commission.
Research and Innovation Research and Innovation ODI / SME instrument ICT2013 – Vilnius Still subject to formal approval of H2020 work programmes Pierre.
State aid and regional policy Paul Hadley Department for Trade and Industry United Kingdom.
Dias 1 Securing Electricity Generation Capacity An assessment through the lens of EU State aid law Eleni Manaridou, LL.M. Ph.D. Fellow Centre.
1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, October 2009 Workshop 3 Audit of State Aids Ljubljana,
State aid issues for NGA networks Ginny O’Flinn 23 November 2010.
Comments on the 2011 draft SGEI Package Damien Geradin Covington & Burling, Tilburg University and College of Europe Bruges, 30 September 2011.
Technology Incubator Program’s draft model Valdis Avotins, LIDA.
State aid evaluation Rodrigo PEDUZZI
Training Resource Manual on Integrated Assessment Session UNEP-UNCTAD CBTF Policy Responses and Follow-up Session 4.
The State Aid Action Plan Thibaut KLEINER DG COMP Global Competition Law Centre 19 September 2005 – Brussels.
European Commission DG Competition 1 Competition Policy and Corporate Governance Humbert Drabbe Stockholm 3 December, 2009.
Financial Engineering – a tool for the implementation of the EUSBSR Sheila Maxwell INTERACT External Expert.
European Union SME policies Ulla Hudina EU Finance Day for SMEs, Athens, 20th January 2009.
RESOURCE EFFICIENCY IN LATIN AMERICA: ECONOMICS AND OUTLOOK 1.
SMEs Global scenario and opportunities Maciej Otulak SME Access to Finance Brussels 28 th November 2013 Access to finance for.
Public Private Partnership in PreSeed Funding October 27th, 2006 Risto Kalske SITRA, Finnish National Fund for Research and Development.
REGIONAL POLICY EUROPEAN COMMISSION The EU Recovery Plan and the proposal amending the European Regional Development Fund Regulation.
EQARF Applying EQARF Framework and Guidelines to the Development and Testing of Eduplan.
The revision of the State aid rules for R&D&I Prague, 18 July 2013
DG Competition 1 DG Competition June 2004 Revision of the regional aid guidelines (RAG)
Regional Policy ESI Funds' Policy in European Trade Unions Confederation Brussels – 13 March 2014 Diego Villalba de Miguel – DG Regional and.
A new start for the Lisbon Strategy Executive summary Increase and improve investment in Research and Development Facilitate innovation,
A new start for the Lisbon Strategy Knowledge and innovation for growth.
Evaluation Seminar Czech Republic CSF and OP Managing Authorities Session 5: Ex-Ante Evaluation and Lisbon Strategy.
European Commission Enterprise and Industry | | ‹#› The Lead Market Initiative and Sustainable Construction CEEC seminar, 8 May 2009 Antonio.
THE GOVERNMENT OF THE REPUBLIC OF SLOVENIA INSTITUTE OF MACROECONOMIC ANALYSIS AND DEVELOPMENT July 2007 Where is Lisbon? (and how far is it from Ljubljana)
Evaluation workshop on the Economic Development OP Budapest, 24 April 2013 Jack Engwegen Head of Unit, Hungary DG Regional and Urban Policy European Commission.
Regional Policy EU Cohesion Policy 2014 – 2020 Proposals from the European Commission.
Financial Engineering Instruments in 2014 – 2020 ETC 10 th European Week of Regions and Cities Brussels, 10 October 2012.
1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, October 2009 EC rules on state aid Ljubljana,
Humbert DRABBE Director, Cohesion, R&D&I and enforcement DG Competition Brussels, 6 March 2012 Session 2: Possible main elements of the modernisation package.
Barbara Brandtner Head of Unit, DG COMP H4 Enforcement and Procedural Reform State Aid Modernisation Procedural Reform.
EU Projects – FP7 Workshop 6: EU Funding –What’s Next? Carolina Fernandes Innovation & Funding Manager GLE Group.
State Aid - An Introduction Stephen Martin Scottish Government State Aid Unit.
State Aid and SMEs, Access to Finance Ramona IANU Country coordinator for Romania, DG Competition 1.
Workshop III: Energy and Environmental aid Diana BARGLAZAN DG Competition, European Commission 1.
The EU Emissions Trading Scheme and its review Thomas Bernheim DG Environment, unit C.2 European Commission.
R&D STRATEGIES IN SUPPORT OF INDUSTRIAL TRANSFORMATION Arm.Dpt. ROMANIA MINISTRY OF DEFENCE ARMAMENTS DEPARTMENT 01 November 2007.
E u r o p e a n C o m m i s s i o nCommunity Research Global Change and Ecosystems EU environmental research : Part B Policy objectives  Lisbon strategy.
HORIZON 2020 W ORK PROGRAMME DG Research and Innovation.
Commission proposal for a new LIFE Regulation ( ) Presentation to Directors Meeting DK 22 May 2012.
1 State aid control in the broadband sector Oliver Stehmann Click to edit subtitle Digital Agenda Assembly – workshop 5: Financing and facilitating broadband.
UNEP EIA Training Resource ManualTopic 14Slide 1 What is SEA? F systematic, transparent process F instrument for decision-making F addresses environmental.
The renewables Directive 1.Sets mandatory national targets for renewable energy shares, including 10% biofuels share, in 2020 (Articles 3 and 5) 2.Requires.
Dutch presidency agenda on ensuring industrial competitiveness Erik Janssen, Ministry of Economic Affairs The Netherlands.
European Investment Bank What Contributions to the Solution of the Crisis from the EIB Group? Debora Revoltella Director Economics Department European.
H2020 The EU Framework Programme for Research and Innovation.
Financing Eco-Innovation: A critical perspective on the Austrian experience of financial support programmes Wolfram Tertschnig Federal Ministry of Agriculture,
EUROPEAN NEIGHBOURHOOD AND PARTNERSHIP INSTRUMENT - ENPI CROSS-BORDER COOPERATION PROGRAMMES.
Investment into smart growth! How we can help!. “…the EU and its Member States should adopt a strategic and integrated approach to innovation whereby.
COSME Financial Instruments for SMEs 20 March 2014 George Lemonidis (Deputy Head of Unit) Unit D3: SME Access to Finance Directorate General for Enterprise.
Regional Policy Future of Cohesion Policy and Investments in Health Christopher Todd, Head of Unit, Slovakia European Commission, Directorate General for.
State Aid Modernisation after 3 years
The Investment plan for Europe: Towards a second phase
Public funding for broadband networks and State aid rules
27 November 2014 Mantas Sekmokas
SCP in the 7th Environmental Action Programme
Anna Nykiel-Mateo Nuria Mariñas Rojo DG COMP
State aid in the field of Energy: challenges
FINANCING NATURA 2000 Agenda item 2.1 CGBN Co-ordination Group
Presentation transcript:

Humbert DRABBE Director Directorate H DG Competition State Aid Modernisation Compatibility assessment and revision of State aid guidelines

1. Scope of the review

Two key proposals Identification and definition of key assessment criteria Horizontal approach to ensure a consistent approach Building on existing best practices (e.g. broadband) Revision and streamlining of State aid guidelines, to make them consistent with these criteria: 1 st stage: Regional aid, R&D&I, Environmental aid, Risk capital, Broadband (+aviation, R&R) 2 nd stage: other guidelines to be progressively aligned

Scope of future compatibility assessment An assessment which first ensures that certain key criteria are met: Incentive effect, market failure, aid limited to the minimum Speedier treatment of well-designed measure, otherwise, more thorough analysis Extended scope of the GBER A substantive analysis of aid measures so as to focus the enforcement on potentially distortive aid, including schemes

Possible review of guidelines' scopes So as to increase the predictability of the assessment process and bring them in line with EU 2020; for instance: Risk capital: possible extension to debt finance (combined with equity or alone), and to established innovative and growth-oriented SMEs Environmental aid: coverage of energy infrastructures? R&D&I: better coverage of demonstration projects and R&D infrastructure Broadband: ultra-fast networks (even in urban areas)

2. Key assessment criteria for the analysis of compatibility

Key assessment criteria Contributing to common EU objectives and correcting proven market failures State aid should correct the inefficiencies which prevent the market from reaching the objective; or address inequalities Risk capital: Better targeting SME access to finance failure by defining presumed financing gaps specific to each development stage R&D&I: presumption of absence of market failure in cases where a notified project replicates what the market already offers R&R: identify the economic and social damages which could be caused in the absence of aid (value added of the aid) Ensuring an incentive effect Avoid granting aid to activities undertaken in any case Check of counterfactual situation Risk capital: tailoring a public-private investment ratio to each development stage (less private participation in more risky seed stages and more private participation in expansion/growth stages) Limiting the aid to what is necessary Reducing the cost of State aid / By doing so, leveraging private capital Regional aid: covering the costs linked to an investment in the region R&R: "burden sharing" requirements Risk capital: limiting aid to the minimum necessary to attract private capital, not exceeding a fair rate of return

Key assessment criteria Defining the appropriate instruments The State aid measure should be an appropriate instrument, either by comparison to non-aid instruments or among several aid instruments Environmental aid: ensuring that the State Aid instrument does not undermine regulatory measures and market mechanisms R&D&I: e.g. reimbursable instrument in case of a liquidity issue at company level; grant instrument where risk/reward profile discourage an investment Preventing distortions in the internal market By protecting competition, combating protectionism and preventing subsidy races, State aid control should ensure a well-functioning internal market, and helps preventing the worsening of discrepancies between Member States Possibility to define a "black list" of types of aid going against Treaty provisions Regional aid: aid for large projects only in "a" regions (in order to avoid subsidy races), more attention to market power / overcapacity issues RDI: e.g. requiring open access and wider dissemination where relevant, in order to alleviate market distortions

3. Revision of the guidelines – first orientations

Risk capital guidelines Possible extension to debt finance (combined with equity or alone), and to established innovative and growth-oriented SMEs Better targeting SME access to finance failure by defining presumed equity gaps specific to each development stage (market gaps defined per debt/equity finance and per development stage) Ensuring an incentive effect by tailoring a public-private investment ratio to each development stage (less private participation in more risky seed stages and more private participation in expansion or growth stages)

R&D&I guidelines Better coverage of demonstration projects and R&D infrastructure Promote well-designed schemes with high returns for R&D Redirecting R&D towards the areas most in need of public investment (prevent crowding out private investments and disruption of market incentives to innovate) Better targeting of the instrument (e.g. repayable advances for projects close to the market and for liquidity needs) Open access to promote dissemination of knowledge and prevent undue market power

Regional aid guidelines Better targeting of aid via new maps Demonstration that aided project is part of a coherent regional development strategy Substantive assessment of all large investment projects Verification of the incentive effect and limitation of the aid to the actual needs Focus aid for large projects towards the least developed areas ("a" regions) Possible identification of structural overcapacities

Environmental aid guidelines Possible extension of the scope of the EAG to better reflect the EU 2020 objectives (energy infrastructures, all low carbon sources of energy). Ensuring that the State Aid does not undermine regulatory measures and market mechanisms (evaluation of alternative/complementary instruments; supply obligations for biofuels) Review the need for full compensation of operating costs (e.g. review need for sheltering renewable energy schemes from market evolution) Better ex-ante guidance on the cost calculation for a simpler assessment

Broadband guidelines Align the Guidelines with the EU 2020 digital agenda targets: allow aid for ultra-fast networks (even in urban areas) under strong pro-competitive conditions; Introduce the concept of "step change" to avoid crowding out of private investment and to support technologies adequate for low density areas; Increased transparency requirements; Clarification, simplification, ease of administrative burden

4. Conclusion

A key pillar of State aid modernisation 1. through the design of measures, ensure that the aid is spent efficiently, and that distortions of competition remain limited Better scoping of guidelines to reflect EU2020 Focus on efficiency of the aid (e.g. limited to the minumum, leveraging private capital) 2. consolidate the approach, focus the enforcement on main distortive aspects of State aid Coherent approach applicable to all categories of aid Prevention of most distortive aid through filters and through reinforced analysis of negative effects 3. provide guidance & clearer rules for national administrations and aid granting authorities Guidance on upfront criteria, and on what needs to be demonstrated