Fic rEcommEndationS - Eurobank EFG

STATE AID LAw
WHitE BooK BaLancE ScorE card
cUrrEnt SitUation
The State Aid Control Law took effect on 1 January 2010.
The Law stems from the provisions of Articles 85 and 86
of the Treaty establishing the European Community (The
Rome Treaty). It seeks to establish a system for state aid
control, with the aim of applying competition rules in this
field, in order to achieve liberalisation and equal footing
for market participants. The second objective is to eliminate
arbitrariness and intransparency of state institutions
granting aid. The members of the State Aid Control
Commission were appointed in late December 2009 and
the Commission held its inaugural session by the end of
March 2010. Until now, 17 sessions of the Commission
were held in total. The regulatory framework has been
supplemented by the Rulebook on the Methodology of
Annual State Aid Reports in Serbia, bringing their form in
line with the EU practice. The first report drafted in this
manner is expected to cover 2010.
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Recommendations:
The development of a sound practice by the new State Aid Commission
and more efficient and prompt harmonisation with EU standards and
established practice of the European Commission in the field of State
aid control.
The adoption of necessary secondary legislation by the Government of
Serbia, especially with respect to the potential jurisdictional conflict with
the Competition Commission.
Amending the law so as to ensure the status of the Commission as an
independent agency. Thus, ensuring that the future performance of
the Commission is not undermined by a lack of independence when it
comes to decision-making.
Establishing ongoing communication with the European Commission
in order to most effectively adopt and implement the EC’s established
practice in the field of State aid control.
Facilitate the organisation of training and education seminars for members
and technical staff of the Commission which will be held by the
European Commission.
Introduced
in the WB:
Significant
progress
PoSitiVE dEVELoPmEntS
Certain
progress
2009 √
2009 √
No
progress
2009 √
2009 √
2009 √
The beginning of the Commission’s work is an important
milestone. In sessions held so far, it has evaluated over
100 submissions, accumulating practice in horizontal and
regional aid for different issues – Government’s anti-crisis
measures, employment subsidies, mining and transport
funding, industrial aid, grants for culture and the media.
Sector aid was not evaluated thus far and de minimis aid
accounts for a significant percentage of the conclusions.
The instruments themselves vary – direct subsidies, interest
subsidies, preferential credits, etc. Aid schemes and individual
aid are almost equally represented.
The Commission’s conclusions and annual reports are available
on the Ministry of Finance’s website, which is a positive
example of transparency. Bringing the annual reports
in line with the EU methodology is another step in the right
direction.
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