1 LEADER support in relation to State aid rules 13TH MEETING OF THE RURAL DEVELOPMENT COMMITTEE 19 NOVEMBER 2014 CENTRE ALBERT BORSCHETTE (CCAB)

Definition of State aid TFEU – Article 107(1) "Save as otherwise provided in the Treaties, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market." Granting of an advantage With a (potential) effect on competition and/or trade In a selective manner (favouring certain undertakings) Undertaking: entities engaged in an economic activity (offering goods and/or services on the market) 2

3 Types of LEADER support Preparatory support Implementation Cooperation Running costs Animation

LEADER support in relation to State aid rules Implementation Almost certainly State aid Other types of LEADER support MS should be vigilant and check on a case-by case basis against the criteria of State aid in the TFEU State aid clearance can only be given to individual LEADER projects, after the approval of the RDP 4

State aid clearance – Possible options Preparation, Cooperation, Running costs, Animation General de minimis Implementation General de minimis GBER SGEI decision ABER (Sections 4 -6) Authorisation under AGL (Part II, Chapters 2 and 3) 5

Compatibility of State aid See the criteria set by the Guidelines, in particular point (39)(d) "incentive effect: the aid must change the behaviour of the undertaking(s) concerned in such a way that it engages in additional activity which it would not carry out without the aid or it would carry out in a restricted or different manner;"  Application for aid should be done before work starts 6

Thank you for your attention! 7