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Review of the Code of Best Practice in State aid

Summary
Evaluation
Commission Proposal
Legal Act
Implementation

Overall state of play:

Commission Notice: adopted on 16 July 2018 (OJ C 253, 19.7.2018, p. 14-27)

State of play, main conclusions, outlook

The Code of Best Practice in State aid procedures gives guidance on how the Commission, Member States and other stakeholders can work together, in particular for complex cases with a higher risk of distorting competition, complaints by interested parties, and the monitoring of support measures by the Commission.

The adoption of the revised Best Practices Code is the last piece of the State aid modernisation initiative, a reform that allows Member States to quickly implement State aid that fosters investment, economic growth and job creation. This should allow the Commission to focus its State aid control on the cases most liable to distort competition in the internal market.

The review of the Code of Best Practice in State aid procedures was combined with the review of the Notice on a Simplified Procedure, bringing together two guidance documents into one streamlined document.

Estimated savings and benefits

The revised Best Practices Code provides guidance for Member States, beneficiaries and other interested parties on the typical day-to-day conduct of State aid procedures. The objective is to make State aid proceedings as transparent, simple, clear, predictable and timely as possible. To this end, the revised Best Practices Code went further than the previous Code in detailing certain voluntary arrangements between the Commission and the Member States.

Since a significant part of the measures covered by the Simplified Procedure Notice are now exempted from State aid notification and the use of that procedure is thus very limited, the Simplified Procedure Notice was be integrated into the present Best Practices Code.

State of Play:

Adopted 16 July 2018 (OJ C 253, 19.7.2018, p. 14-27)

Which objective(s) does the Commission pursue?

The aim was to review the Commission Notice on a Code of Best Practices on the conduct of State aid control proceedings (‘Best Practice Code’) (2009/C 136/04) and the Commission Notice on a Simplified Procedure for the treatment of certain types of State Aid (‘Simplified procedure Notice’) (2009/C136/03).

The revised Best Practices Code adopted in 2018 takes account of the development of the rules governing State aid following State aid modernisation (SAM), decision-making practice and the experience gained in applying the Best Practices Code and the Simplified Procedure. At the same time, the review considers the reduction of the administrative burden for stakeholders, as well as greater legal certainty as regards the applicable State aid procedures.

To this end, the revised Best Practices Code details how State aid procedures should be carried out, in particular as regards their duration, transparency and predictability.

It includes guidance on the following arrangements:

• the case portfolio exercise;

• market information tools;

• evaluation, monitoring and collaboration on State aid control issues;

• implementation of a network of country coordinators to facilitate day-to-day contacts between the Commission and Member States; and

• an update in line with the revised procedural rules, in particular as regards complaints handling.

The Best Practices Code also provides for a streamlined procedure. This procedure applies to straightforward cases where similar measures have already been approved by the Commission and for which short-form decisions can be adopted.

Estimated savings and benefits

The revised Best Practices Code aims to provide guidance for Member States, beneficiaries and other interested parties on the typical day-to-day conduct of State aid procedures. The objective is to make State aid proceedings as transparent, simple, clear, predictable and timely as possible. To this end, the revised Best Practices Code went beyond the previous Code in detailing certain voluntary arrangements between the Commission and the Member States.

Since a significant part of the measures covered by the Simplified Procedure Notice are now exempted from State aid notification through the application of the General Block Exemption Regulation and the use of that procedure has thus become very limited, the Simplified Procedure Notice has been integrated into the present Best Practices Code.