The European Commission's Programme for State Aid Modernization

Abstract

The European Commission has set out a modernization programme for state aid. This affects both substantive state aid law and administrative procedures. On substance, while the Commission has no power to change the meaning of state aid, which is derived from Article 107 TFEU and is a matter of law ultimately for the CJEU, it intends to issue a detailed Notice on the notion of aid, in particular in relation to fiscal aid and application of the market investor principle. More proactively, the Commission is revamping the system of assessment and exemption, with a plan to reform the general block exemption and the various guidelines on, for example, environmental protection, research and development and innovation, risk capital and restructuring aid. A more analytical approach, weighing up the economic effects, will be carried out in assessing compatibility. On the procedural side, the main reform is intended to lessen the Commission's administrative workload by reducing the number of complaints that require a Commission decision. Whereas, at present, all complaints must be acted on, regardless of the interest of the complainant, it is intended that henceforth complainants would have to show that they were interested parties within the meaning of the Procedural Regulation. Complaints from other persons would merely be treated as information tools. The Commission also is seeking to introduce new powers for gathering market information from sector participants.