state aids

state aids

part of the competition policy of the EUROPEAN UNION that prohibits Member States granting aid in such a way that it affects trade between Member States. The prohibition strikes at aid which confers an economic advantage on the recipient; it is granted selectively to certain enterprises or products; it may distort competition; it affects trade between Member States. Member States must notify such aid, and it maybe permitted as being in the general interest of the economy without distorting trade.
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The draft new rules on State aids in the agriculture and forestry sectors and in rural areas (block exemption Regulation and Guidelines) have now been put online in all official EU-languages.
the general criteria which will be used by the Commission when assessing State aids notified by Member States).
The objective is also to set the State aids rules needed now that a new Common Agricultural Policy (CAP) was agreed in December 2013, so as to maximize the efficiency of that policy, in particular its rural development pillar.
EU policy as regards State aid aims to guarantee free competition, the efficient distribution of resources and the unity of the European market while still respecting its international commitments.
Companies considering expansion in the EC should be aware that investment and restructuring deals that take advantage of specific state aids may be in for active scrutiny by the Commission, depending on their size and significance.
Given these precautions, it still makes sense to include state aids in the overall consideration of a proposed investment in the EC.
According to the "Second Survey on State Aids in the European Community," the EC as a whole spent ecu 82 billion (US $107 billion) on state aids in 1987 to 1988.
The "Second Survey" also analyzes state aids by their primary objectives.
The survey also points out that the number of state aids which the Commission considers incompatible with EU laws remained level in 1998 and 1999 at 8% of all cases considered, in 1997 this had only been 2%.
The Lisbon European Council has asked for a reduction of the general level of State Aids and a shifting of the emphasis from supporting individual companies or sectors towards tackling horizontal objectives of Community interest, such as employment, regional development, environment and training or research.
At issue are state AIDS Drug Assistance Programs, or ADAPs, that buy medicine for uninsured HIV-infected people who don't qualify for Medicaid because they're not quite poor enough or sick enough.
Particular attention will be paid to energy liberalisation, and how to deal with state aids that have been granted by the candidate countries before accession, but may have effects beyond the day of accession.

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