1. Barbara Brandtner Head of Unit, DG COMP H4 Enforcement and Procedural Reform State Aid Modernisation Procedural Reform

2. 2 OBJECTIVES OF THE MODERNISATION Support growth-enhancing objectives SAM COMMUNICATION Better-prioritised enforcement Streamlined rules and faster decisions PROCEDURAL REFORM Focus on most significant cases Simplify treatment of measures with little impact Well substantiated decisions Respect business-relevant timelines

3. 3 SCOPE OF THE PROCEDURAL REFORM Well substantiated decisions Focus on most significant cases Simplify treatment of measures with little impact Respect business- relevant timelines COMPLAINTS-HANDLING MARKET INFORMATION TOOLS/SECTOR INQUIRIES

4. 4 HANDLING OF COMPLAINTS

5. 5 CURRENT SHORTCOMINGS Duty of the Commission to investigate all complaints irrespective of their significance - High number of complaints/ Long duration - Insufficient focus on the most significant distortions Very few requirements to put the Commission under the obligation to investigate complaints + = COMPLAINTS COMPARE - Handling of infringement cases

6. 6 ADMISSIBILITY TESTS Kept as MARKET INFORMATION Could be used for EX-OFFICIO OBJECTIVES Improve the quality of complaints Definition of the concept of complaints NEW FILTERS COMPULSORY COMPLAINTS FORM (Form defined in the Implementing Regulation) LEGITIMATE INTEREST TO ACT (Interested parties within meaning Art. 1(h) PR) What happens with the information which does not pass the admissibility tests ? COMPLAINTS

7. 7 A TRANSPARENT AND FASTER PROCEDURE Within 2 months : Priority settings Decision no aid, compatible aid or opening within 12 months Preliminary assessment No reply from the complainant Decision on no aid, compatible aid or opening NEW GROUNDS FOR REJECTION OF COMPLAINTS BY COLLEGE DECISION TO BE EXPLORED COMPLAINT DEEMED WITHDRAWN Submission of complaints Reply from the complainant Non-priority complaints Priority complaints NEW COMPLAINTS

8. 8 IMPACT Reduction of workload for the Member States, the third parties and the Commission Reduction of the number of complaints Focus on significant distortions of competition COMPLAINTS Commission will keep exclusive competence to assess State aid

9. 9 MARKET INFORMATION TOOLS (MIT)

10. 10 WHY DO WE NEED MIT? Need information from the market to assess:  the design and impact of a measure (e.g. crowding out)  market benchmarks not available to MS (e.g. IRR, risk profiling)  the situation in other MS/projects subsidised or not Best Practices are not enough NEED TIMELY, RELIABLE AND FACTUALLY CORRECT INFORMATION FROM THE MARKET MIT

11. 11 HOW WILL MIT BE USED? FOR WHICH TYPE OF CASES ? Mostly in complex individual cases requiring an in-depth assessment to assess (for instance): normal market practice (e.g. State aid in guarantees/loans) market failures and /or incentive effect benchmarking WHAT KIND OF INFORMATION ? ONLY readily available information such as : factual market data and company data (e.g. market shares, profits) facts-based analysis (e.g. overcapacity, market growth rate) MIT

12. 12 DESIGN Addressees: Any undertaking, association of undertakings or other Member States Incorrect/ misleading answer No obligation to reply SanctionsTypes of requests Incorrect/ misleading/ incomplete answer Late answer Simple requests Commission decisions Sanctions for undertakings asked to reply No sanctions for Member States and public authorities given duty of sincere cooperation MIT

13. 13 MIT BILATERAL NATURE OF THE PROCEDURE MAINTAINED MS and the Commission will still be the only parties No creation of third party ‘rights’ MEMBER STATES WILL BE DULY INVOLVED Member States will be informed of the scope and content of the information requests Member States will have the right to comment on the replies received MIT AND THE ROLE OF MS

14. 14 MIT MIT AFTER THE OPENING OF THE FORMAL INVESTIGATION MS rights of defence guaranteed Confidentiality ensured Duration reduced Workload limited

15. 15 Reinforced horizontal information to better understand economic impact of State aid Extended use of existing powers Legal basis for sector inquiries (SI) HOW TO COLLECT SECTORAL INFORMATION ? Could be useful in certain sectors such as airlines, railways, ports, risk capital Rationale: SI SECTORAL INFORMATION +

16. 16 Initial market analysis using existing tools Solid indications of State aid issues in several MS needed before launching a SI Publicly available information, not the scope of SI Sector inquiries = proportionate to market distortion Once a SI is launched, MIT will be used SI SECTOR INQUIRIES

17. 17 Reduce administrative burden for MS More transparent, accurate and swift information flows Better motivated decisions and equality of treatment Share market information available with Member States Reduce duration and free up resources IMPACT

18. 18 Thank you for your attention !