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State Aid - Coggle Diagram

- - - - Tubemeuse - 4 elements
        
        provided by Ms or through MS resources
        
        Van Der Kooy - dutch government owned 50% of private company, sold gas to undertakings at preferential rates - state aid according to commission and ECJ
        
        distort or threaten to distort competetion
        
        look at position of undertaking prior and after state aid
        
        confer an advantage on recipient
        
        intention or ratioanle not important for the state aid objective
        
        state aid can include - tax emptions, subsidies, favourabe loan guarantees, preferential terms - broad - can be direct and indirect
        
        GIL Insurance general economic policy is not state aid - different categories can have different tax for insurance premiums
        
        Tubermuse MS acquires shares in company, invests in company - instituted transactions to company's capital - state aid
        
        Altmark - public service compensation escape classification if certain conditions are met (licenses for Bus route)
        
        recipient undertaking have public service obligations to discharge which are clearly defined
        
        parameters on how compensation calculated beforehand and clearly defined
        
        must not be more then necessary to cover all or part of costs of discharging public service
        
        costs based on how a typical well-run undertaking would incur - reasonable profits and relavent receipts
        
        effect on inter-state trade
      - state aid incompatible with common market
    - - list of situations where aid compatiible with common market
        
        if aid social character to individual customers, provided no discrimination based on origin
        
        to make good damages caused by natural disasters or exceptional occurences
    - - Bellamy and Child - broad discretion to authorise appraisal of economic facts and circumstances - based on aim of solidarity, competition and proportionality
      - promote economic development in areas with low standard of living (EU wide standard)- Philip Morris Holland
      - bail outs granted during economic crisis
      - Intermills - ECJ decision contained gaps and contradictions - lack of reasons given
      - develop economic activities (equal and promoting jobs), promote cultural and heritage conservation
      - group exemptions
        
        small and medium sized enterpries, R & D, environmental, employment and training
  - - - existing state aid, commission keep under review
      - if commission feels no longer compatible give MS a month to respond
      - can then issue recommendations with amendments or abolition
      - new state aid notification procedure
        
        any aid other then existing must be notified
        
        must be authorised by commission before put into effect
        
        commission 2 months to give preliminary view - can approve, reject or express doubts and futher investigate
        
        finnal decision in 18 months
      - council can decide unaminously after MS applies that it is compatible if exceptional circumstances
        
        procedure suspended when this happens until council comesto a decision
        
        wide disretion
        
        only exception if manifest error or misuse of power Commission v Council (Wine)
        
        limitations
        
        cant approve aid already prohbiited by commission
        
        Commission v Council (Pig Farmers) - two aid portugal aid schemes for pig farms, commission incompatible with common market, portugeuse government requrest council exemption - Council didn't think any impact on common market - ECJ can't thwart effectiveness of commissions decision incompatibile with common market
      - 3rd party procedural rights
        
        beneficiaries of state aid have the most to lose
        
        procedural regulation set out rights
        
        can submit comments to commission during investigation
        
        sent copy of final decision
        
        interested party may inform commission of misuse of aid or unlawful aid
        
        can seek to challenge commissions decisions under anulment action
        
        must show directly and individually concerned by case - Plaumann
    - - permits council after proposal by commison by QMV to make exemptions by regulations
      - challenging commission decision - annulment action