Dáil Éireann Debate, Thursday - 18 July 2013
288. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on state-aid modernisation and progress made on the matter during the Irish EU Presidency, specifically regarding good aid; and if he will make a statement on the matter. [36170/13]
View answerThe aim of the Commissions State Aid Modernisation process is that State Aid policy should help both the implementation of the EU 2020 strategy for growth as well as budget consolidation, by a more efficient use of taxpayers’ money and to encourage Member States to spend State Aid on public policies that can boost growth and create jobs.
It also aims to ensure that State aid control should facilitate the treatment of so called ‘good aid’, which is aid that is the least distortive, is well-designed, and is targeted at identified market failures and objectives of common interest.
The Irish Presidency convened nine meetings of the Competition Working Party to discuss two regulations: the Procedural Regulation, which sets out how complaints or formal investigations in State aid are addressed by the Commission, and the Enabling Regulation, which dictates how the Commission decides upon the scope of the types of aid that could in the future be covered by block exemptions. Once block exempted, certain aid can be brought into place by Member States without seeking prior permission from the Commission.
The ninth and final meeting of the Competition Working Party took place on 07 May 2013. The Competition Working Party noted the support for a large majority of delegations for the two Presidency compromise texts. The Permanent Representatives Committee approved the Presidency compromise texts on both Regulations on 15 May 2013 and invited the Council (Competitiveness) at its meeting on 29 May 2013 to proceed to a public debate with a view to the subsequent adoption of the two Council Regulations.
Because of the high political importance of State Aid Modernisation, the Presidency proceeded - as the opinions from the European Parliament were not yet adopted - to a General Approach on these two Regulations at the 29 May Competitiveness Council.
The agreement will ensure more efficient and transparent monitoring of State Aid by the Commission, enhanced data-gathering processes and improved co-operation between the Commission and Member States’ national courts. The reforms will also enable the Commission to focus on large and potentially distortive State Aids, while simplifying the procedures for ‘good aid’.
Formal adoption of the regulations will now take place under the incoming Lithuanian presidency. The Commission will aim at developing the rest of the package over the following year with a view to progressively achieving the revision of the main Commission acts and guidelines by the end of 2013. The main instruments of the package, including the Council acts, should be adopted by the end of 2013.
