EU Law State Aid Control Procedure

Extract

[...] Thus it is necessary to question the following question: how does the DUE ensure the control of state aid? I. The establishment of a strict control by the Commission under the treaties Many European regulations - Control procedure and compatibility A. Article 108 TFEU - 108 TFEU: Commission and Member States examination of the state aid regime that is to say surveillance and control/investigation by the Commission - From the moment there is suspicion of illegal aid, statue on compatibility with the internal market or incompatibility distortion of competition = appeal to the court. [...]

[...] How does European Union law (EU law) ensure control over State aid? - Introduction and detailed outline The procedure for controlling State aid in European Union law Need for a control procedure given the amounts that these aids can represent and the influence they can have. It is the administrative judge who is competent to exercise this control. However, the European judge can also exercise control over the acts of EU law. No regulation in French law on state aid, so the L and the administrative judge must resolve point by point the difficulties. [...]

[...] - Exclusive competence of the Commission carried out important control, as the The principle is simple, an aid measure put into application before the commission has ruled is illegal. The commission's subsequent intervention can only have the effect of regularizing it. - The obligation to recover has an imperative character that knows no exception except the principle of legitimate trust that could be mobilized exclusion of constitutional rules). B. Article 107 TFEU - sets the conditions for the award of an advantage: - Induce an advantage in comparison to the normal situation of the market - Advantage must be individualized to the benefit of an enterprise or an economic sector - Advantage must come from the State - Aid must be capable of distorting competition. [...]

[...] The States have not been able to react, as it is difficult to meet the conditions. - Decision : Commission of 28 November 2005 » The Commission declares compatible certain aids that do not fall within the 4 conditions, we go beyond the jurisprudence and we declare measures that do not go in the judgment, the aids in question are exempted from a notification obligation. The commission gives a list of these aids (social housing, hospitals?). [...]

[...] The beneficiary company of a financing must be charged with a clearly defined public service mission The compensation paid by the State must not exceed the strict necessary to cover the cost of the public service mission The parameters for calculating the compensation must be established in advance in an objective and transparent manner When the choice of the company charged with a SIEG was not made as a result of a public procurement procedure, the level of costs was determined by comparing the costs of the company with the costs that a well-managed average company would have incurred. If the 4 conditions are met, no notification is required, because the measure does not constitute state aid in the sense of the treaties. Suscite a lot of legal insecurity and did not have the expected solution. [...]