Dáil Éireann Debate, Tuesday - 25 July 2023
396. Deputy Eoin Ó Broin asked the Minister for Enterprise, Trade and Employment what happens in the event of an overpayment of a subsidy or grant to a business; and whether costs can generally be recouped. [36631/23]
Amharc ar fhreagraThe State Aid Framework is the EU’s internal subsidy control system. In general, State Aid is prohibited under the Treaty on the Functioning of the EU (TFEU) because of its anti-competitive effects, however, State Aid is allowed in clearly defined circumstances.
The European Commission has competence in relation to State Aid Rules and is obliged to keep State Aid systems under constant review, to examine notified aid proposals, and to investigate any complaints made in relation to State Aid schemes or payments. The State Aid Unit in my Department is the National Contact Point for State Aid policy.
When an over-payment occurs as an administrative matter, the excess can be recouped using a claw-back mechanism. The specific modalities of the claw-back would depend on the granting authority's procedures and the terms of the grant agreement.
Where an aid award is deemed incompatible or unlawful, Article 16 of Council Regulation (EU) 2015/1589 (the Procedural Regulation) requires the Commission to order the Member State in question to recover the aid with interest from the beneficiary.
