1. State aid monitoring and control: Sharing of experience
VI Competition Forum of Ukraine
Kyiv, 3 March 2017

2. Introduction of the national State aid control system - starting point
Before the change of the system from the socialism to market economy there was no State aid policy in many countries acceding the EU in 2004 or 2007
After signing the European Agreements in 90-ties of the 20th Century, harmonization of the national legal framework with the EU State aid rules had commence

3. Some reasons of granting State aid
To stimulate foreign investments
To solve some tasks of economic development of the country
To keep companies alive to safeguard working places
To clean companies’ balance sheets before privatisation
Simply to keep some companies afloat

4. Process of alignment
After the negotiations started on countries’ future membership into the EU, immediate abolishment of the national laws and regulations incompliant with the EU State aid law had been requested
The hardest discussions with the European Commission were on acquired rights
Transitional arrangements in the Accession Treaties for some countries joining the EU in 2004 (Poland)

5. State aid framework provides some discipline for political forces
It is very important tool to better focus the use of public resources and avoid waste of taxpayers’ money
Objective of the State aid control is to grant public funds for the lowest possible costs for citizens
Public funds spent for activities that an undertaking would undertake anyway is waste of public resources

6. State aid regime serves internal market and competition
EU State aid regime provides the same playing field for all EU Member States irrespective of their wealth
It serves to avoid subsidy race between different EU countries
Measures providing benefits to individual companies risk distorting competition as they discriminate between companies that receive assistance and others that do not

7. Is the EU State aid law restrictive?
It is important to focus on types of support that is key for the growth of economy and limits interventions of the State which are peventing inefficient companies from leaving the market
Interventions by the State shall compliment market forces and target support to well defined market failures to fix them

8. Negative consequences of State aid
State aid may lead to:
Companies being inefficient
Unfair competition in the market for efficient companies
Keep companies artificially alive

9. Whisely granting State aid deams may come true
Whisely granting State aid deams may come true! Thank you for your attention!