EU & Competition Law ezine
NOVEMBER 2006

This Issue:
- M&A News
- Irish Competition News
- European Competition News
State Aid Review
- Regulatory News
- Public Procurement Review


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State Aid Review

Commission approves regional aid map 2007-2013 for Ireland

The Commission has approved a new regional aid map for Ireland for the period 2007-2013.  This map forms part of a wider exercise to review regional aid systems in all Member States in accordance with the new Regional Aid Guidelines adopted in December 2005.  The new guidelines are intended to focus regional aid on the most deprived regions of the enlarged EU, while improving competitiveness and providing for a smooth transition.

Source: http://www.entemp.ie/press/2006/20061025.htm 

Commission publishes new draft de miminis rule

The Commission has published revised draft rules on de minimis subsidies for consultation.  The new draft de minimis rules exempt small subsidies of €200,000 or less from the notification obligation under the EC Treaty state aid rules.  The exemption is limited to measures where the State aid element can be calculated in advance.  In addition, guarantees will be covered by the exemption where the underlying loan does not exceed €1.7 million. 

Source:http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1220&format=HTML&aged=0&language=EN&guiLanguage=en

European Court rules on impact of failure to notify aid

On 5 October 2006, the European Court of Justice gave a ruling on the legality of national measures to put into effect aid that had not been previously approved by the Commission in a situation whereby a Member State had failed to notify the Commission of the aid. During the course of a preliminary reference from the Austrian Constitutional Court, the ECJ confirmed that any subsequent approval by the Commission of non-notified aid as compatible with the common market did not rectify the illegality resulting from a Member State’s failure to notify in the first place.

Source: Case C-368/04, Transalpine Ölleitung in Österreich GmbH, Planai-Hochwurzen-Bahnen GmbH and Gerlitzen-Kanzelbahn-Touristik GmbH & Co. KG v Finanzlandesdirektion für Tirol, Finanzlandesdirektion für Steiermark and Finanzlandesdirektion für Kärnten, judgment of 5 October 2006

Commission publishes proposal for extending horizontal state aid block exemption

The Commission has published for consultation a preliminary draft proposal for a Regulation which amends the horizontal state aid block exemption. Among the proposals made, the Commission suggests the extension of the horizontal state aid block exemption to state aid in the culture and heritage sectors, state aid in the agricultural sector, and state aid having a social character in the transport sector. If the draft proposal proceeds in its present form it would also enable the Commission to request information from member states concerning conformity of aid measures with the Regulation, on a random basis and retrospectively, even where the Commission does not have evidence that the Regulation is being incorrectly applied by that Member State.

Source: http://ec.europa.eu/comm/competition/state_aid/overview/reg994_amending_draft_en.pdf

Commission proposes simplification of exemption procedures for certain types of state aid

On 17 October, the Commission published a draft proposal to exempt certain categories of state aid from the prior notification requirement. The categories include culture, heritage conservation and damage caused by natural disasters. Similar arrangements will be proposed for the production, processing and marketing of agricultural products and for aid having a social character in the transport sector. The proposals are intended to eliminate some notifications and to speed up decision making.

Source:http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/06/1412&format=HTML&aged=0&language=EN&guiLanguage=en 

Commission simplifies procedures for approving regional aid with new block exemption Regulation

The Commission has adopted a new block exemption Regulation for regional investment aid (aid which promotes the economic development of disadvantaged regions).  This means that Member States no longer have to notify regional investment aid schemes to the Commission if they fulfil the conditions set out in the Regulation.  The new Regulation is based on the new Guidelines for regional aid 2007-2013 which were adopted in December 2005.  The Commission has also adopted new notification forms for regional aid schemes which do not meet the conditions of the new block exemption Regulation.

Source:http://www.algoodbody.ie/ezineeu/"http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1453&format=HTML&aged=0&language=EN&guiLanguage=en 

Commission extends state aid rules for shipbuilding

The Commission has decided to extend the Framework on state aid rules for shipbuilding by two years until 31 December 2008. The Framework takes into account the characteristics of the shipbuilding industry, including provisions about the use of aid for innovation.

Source:http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1452&type=HTML&aged=0&language=EN&guiLanguage=en 

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The contents of this Newsletter are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

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