SIEG Framework Distinct from State Aid

Extract

[...] - However, this extension remains to be relativized. In fact, in a decision of May regarding the SNCM (Corsica-Mediterranean National Shipping Company), the Commission qualified the contribution of the Corsican territorial community as state aid in the context of the public service delegation between 2007 and 2013. To conclude, the subsidy regime taking the form of service compensation tends to relax to include more and more subsidies that are not qualified as state aid and therefore exempt from the notification procedure. [...]

[...] Exclusion of SIEG as state aid - Article 106 TFUE §2 exempts SIEG from the obligation to notify, that is to say the recognition of a derogatory regime for state aid. - To avoid being classified as state aid, one of the following three conditions must be met. - Or, it must be in the case of a non-economic activity, in which case it is not state aid. - Or, the intervention has no impact on the trade between member states. - Or, it must meet the 4 criteria of the Altmark jurisprudence. [...]

[...] In what measures can one ensure a framework for SIEG distinct from state aid considering its specifics? - Introduction and detailed plan A subsidy is to be understood as a common financial aid, which is neither a loan nor a cash advance, granted by theState, aa territorial collectivity or a private organization to finance or promote thedevelopment of an activity ofgeneral interest or, as a last resort, to meet a pressing case. These subsidies take the form of compensation for public service obligations, which refer to aid for services of general economic interest. [...]

[...] In what measures can we ensure a framework for SIEG distinct from state aid in view of its specificities? I. A European law that explicitly recognizes a legal framework for SIEG A. The framework of SIEG by article 106§2 - 106 TFEU: the §2 of the article is an exception to the notification rules for competition for companies entrusted with a SIEG (=service of general economic interest) which corresponds more or less to a public service of EU law. The article subjects companies entrusted with a SIEG to European competition rules but only within the limits where the application of these rules does not hinder the mission entrusted to them. [...]

[...] - The list of SSIG is not very precise, social activities are subject to redefinition, that is to say that the Commission is preparing a new decision. - Altmark is pushing towards public markets. Administrative disputes are making us feel that. - Altmark is favorable to companies that manage SIEG and to public authorities but certain companies may be victims of this. - This jurisprudence (court 2017) condemn state aids if SIEG not clearly demonstrated by public authorities. [...]