Transcript Slide 1

Training seminar on State aid
Warsaw
25 September 2009
Regional aid
Henry Britton
DG Competition – Regional aid*
*The views expressed are purely those of the speaker and may not in any circumstances be regarded as
stating an official position of the European Commission
1
Outline
1. General notions on regional aid
2. The regional aid guidelines (RAG)
3. Regional aid in the GBER
4. Practical issues
5. Questions & answers
2
1. General notions on regional aid
3
Regional aid: General notions
•
•
•
•
•
•
Horizontal aid
Cohesion objective (redress disparities)
Link to regional development policy
Systemic (endogenous) or FDI-oriented
Evolutions in EC regional aid approach
Also in other regions of the globe
4
Total State aid as a percentage of GDP by Member State
(2007)
Luxembo urg
Esto nia
United Kingdo m
Greece
B elgium
Italy
A ustria
Cyprus
Netherlands
Slo vakia
EU 15
Spain
France
EU 27
Slo venia
Ireland
P o land
Denmark
Lithuania
Germany
Czech Republic
M alta
EU 12
Sweden
Latvia
Finland
Ro mania
P o rtugal
B ulgaria
Hungary
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
%of GDP
Industry and services as % o f GDP
A griculture, fisheries and transpo rt as % o f GDP
5
Trend in level of aid by primary objective - Poland/Polska
3.5
3
RR aid other sectors
RR aid for financial services
2.5
% of GDP
Other sectoral aid
Coal
2
Other horizontal aid
Employment and training
1.5
SMEs incl. risk capital
Regional development
1
R&D
Environment and energy
0.5
0
2002
2003
2004
2005
2006
2007
6
State aid to horizontal objectives and sectoral aid as % of total aid (2007)
SME
50
Research &
Development
40
Training
30
20
EU27
Poland/Polska
10
Regional
development
0
Environment/
energy saving
Employment
Other horizontal
objectives
Total
sectoral aid (including rescue and
restructuring aid)
7
2. The regional aid guidelines
(RAG)
8
Structure of the RAG 2007-2013
1.
2.
3.
4.
5.
6.
7.
8.
9.
•
Introduction
Scope
Demarcation of regions
Regional investment aid
Operating aid
Aid for newly created enterprises
Transitional arrangements
Regional aid maps and declaration of compatibility
Entry into force, implementation, transparency and review
Annexes
9
Regional map
• For Poland, covers entire territory (100 % of
population)
• Defines:
– the areas eligible for regional aid
– the maximum aid intensity in each area
• Art. 87(3)(a):
– GDP per capita <75 % (in PPS) of Community level
– For each NUTS level 2 region
10
11
Aid intensities
• Large enterprises:
– GDP below 45 %: 50 % GGE (10 voivodeships)
– GDP below 60 %: 40 % GGE (5 voivodeships)
– GDP below 75 %: 30 % GGE (Mazowieckie)
• SME bonuses:
– Small enterprises: +20 pp GGE
– Medium enterprises: +10 pp GGE
– (except for transport sector)
12
Sectoral scope: Exclusions
RAG, points 8 and 9:
• Sectors not covered by the RAG:
– Fisheries, coal industry
• No regional (investment) aid for:
– Steel industry, synthetic fibres
• Types of company excluded:
– Firms in difficulty
13
Sectoral scope: Special rules
RAG, point 8:
• Agricultural sector:
– only for processing and marketing of agricultural
products
– conditions of the AGRI guidelines must apply
• Specific rules (even if applied under the RAG):
– Transport, shipbuilding
14
Sectoral scope: Schemes
RAG, point 10:
• In principle, regional aid schemes should be
multisectoral
• Should form part of a regional development
strategy with clearly defined objectives
• If ad hoc aid, to one firm, or to one sector:
need to prove contribution to such strategy
15
Incentive effect
RAG, point 39:
• Before start of works on the investment
project:
– Beneficiary must submit an application for aid
– Granting authority must confirm in writing that
project, in principle, meets scheme conditions
• Aid schemes must mention these conditions
– (except automatic tax schemes)
16
Initial investment
• Setting-up of a new establishment
• Extension of an existing establishment
• Diversification of the output of an
establishment into new, additional products
• Fundamental change in the overall production
process of an existing establishment
17
Initial investment (2)
• No replacement investment
• If establishment has closed or would have
closed (without the acquisition):
– Assets directly linked to the investment
– Participation in company (acquisition of
shares/equity) not sufficient
18
Eligible costs
• Material assets:
– Land, buildings, plant/machinery
• Immaterial assets (technology transfer):
– Patent rights, licences, know-how, unpatented
technical knowledge
– For large entreprises: max. 50 % of total eligible
costs; for SMEs: no ceiling
• Acquired assets should be new
19
Eligible costs: Existing establishment
• Acquisition of existing establishment:
– only assets bought from third parties (under
market conditions)
– If accompanied with new investment: both have
to be treated as single investment
• Takeover:
– Existing (old) assets can be included
– Exclude assets for which aid was already granted
(before purchase)
20
Eligible costs: Leasing
• Land and buildings: any form of leasing, but
lease must continue for 5 years after expected
date of completion of investment project (3
years for SMEs)
• Other assets: only financial leasing +
obligation to purchase assets (or transfer of
property) at expery of term of leasing contract
21
Eligible costs: SMEs
• Preparatory studies and consultancy (aid
intensity of up to 50 % of costs)
• Existing (old) assets can be included
22
Eligible costs: intangible assets
• Must be purchased from third parties under
market conditions
• Can only be used in the establishment
receiving the aid + must remain in the
establishment receiving the aid for at least 5
years (3 years for SMEs)
• Must be amortizable assets + be included in
the assets of the firm
23
Maintenance conditions
• The investment must be kept in the region for
at least 5 years after the completion of the
project (3 years for SMEs)
• Wage costs:
– posts must be filled within 3 years of completion
of the works
– Jobs must be kept in the region for 5 years from
when the post was first filled (3 years for SMEs)
24
Cumulation
• Source of aid not relevant:
– Local, regional, national, Community
• Regional aid can be cumulated with:
– Aid under other schemes
– Ad hoc aid
– De minimis aid
25
Cumulation (2)
• Most favourable ceiling can be used for:
– Regional aid based on combination of capital costs
+ wage costs
– Common portion of same eligible costs for which
other aid is applicable
• But regional aid ceiling must be respected
• For schemes, need to specify how cumulation
conditions will be ensured
26
Large investment projects (LIPs)
• Investments projects with eligible costs > € 50
mio
• Ex post monitoring of projects: > € 50 mio
• Rules on single investment project (SIP):
– Geographical proximity
– Technical, function and strategic links
27
Adjusted aid ceilings
Eligible expenditure
Adjusted aid ceilings
Up to € 50 mio
100 % of regional ceiling
For the part between € 50
mio and € 100 mio
50 % of regional ceiling
For the part exceeding €
100 mio
34 % of regional ceiling
28
Skutek korygowania pułapu pomocy na przykładzie regionu z 40% pułapem
pomocy regionalnej
45%
Kwota pomocy (€ mln)
40%
35%
30%
25%
20%
15%
10%
5%
0%
0
50
100
150
200
250
300
350
400
450
500
550
600
Koszty kwalifokowane (€ mln)
29
Notification of LIPs
• Must be notified if the aid exceeds the
maximum aid that a project of € 100 mio
could receive (adjusted aid)
• If below notification threshold: can be
implemented directly (EC informed within 20
wd)
30
In-depth assessment of LIPs
• For projects with aid > notification threshold
• If:
– Market share of beneficiary > 25 % (before or
after the investment)
– Production capacity increase > 5 % if in a market
in decline
• Opening of the formal investigation procedure
31
LIPs guidance communication
• Positive effects:
– Contribution to regional economic development
(objective of the aid), appropriateness of the aid
instrument (necessity), incentive effect,
proportionality
• Negative effects:
– Market power, inefficient market structures,
negative effect on trade
• Balancing test: effects on trade
32
3. Regional aid in the GBER
33
Założenie
• Zwolnienie z obowiązku zgłoszenia do
Komisji środków, które spełniają wszystkie
warunki Wyłączenia dot. pomocy
regionalnej
34
Przepisy przejściowe
Pkt 66 Rozporządzenia:
• Wraz z uchyleniem rozporządzenia (WE) nr
1628/2006 możliwa będzie dalsza realizacja
istniejących wyłączonych programów
regionalnej pomocy inwestycyjnej na
warunkach przewidzianych w
rozporządzeniu 1628.
35
Zakres
• Stosuje się do przejrzystych programów
pomocy regionalnej
• Pomocy ad hoc wykorzystywanej jako
uzupełnienie pomocy przyznanej w oparciu o
przejrzysty program regionalnej pomocy (do
50% całkowitej kwoty pomocy)
36
Pomoc nieprzejrzysta
• Programy regionalnej pomocy inwestycyjnej, w
przypadku których, nie jest możliwe dokładne
wyliczenie ex ante ekwiwalentu dotacji brutto jako
odsetka wydatków kwalifikowanych bez potrzeby
przeprowadzania oceny ryzyka
• ALE:
– Jeżeli Komisja zatwierdzi metodologię użytą do
obliczenia intensywności pomocy możliwe będzie
stosowanie Wyłączenia także do takich
instrumentów
37
Pomoc przejrzysta - zmiany
• dla MŚP: możliwość zastosowania obwieszczenia
Komisji w sprawie zastosowania art. 87 i 88 TWE do
pomocy państwowej w formie gwarancji;
• pożyczki niezabezpieczone – odniesienie do stopy
referencyjnej obowiązującej w dniu przyznania
pomocy
• Zaliczki zwrotne – jeżeli całkowita kwota zaliczki nie
przekracza dopuszczalnego pułapu pomocy
• Wyjątki od „nieprzejrzystości” pomocy w formie
dokapitalizacji oraz kapitału podwyższonego ryzyka
38
RSWG – część regionalna
• Nie stosuje się do:
– Innego rodzaju pomocy ad hoc aid
– Programów nieprzejrzystych
– Programów sektorowych – [turystyka]
– Dużych projektów inwestycyjnych, które
podlegają obowiązkowi indywidualnego
zgłoszenia
– Programów pomocy operacyjnej
39
Warunki udzielania pomocy
• Bliskie warunkom określonym w Wytycznych 2007 -2013 i
poprzedniego Rozporządzenia 1628/2006; ALE:
– Rozszerzenie zakresu środków nieprzejrzystych
– Włączenie pomocy dla nowoutworzonych przedsiębiorstw (+ zasada
12 miesięcy)
– Uproszczona definicja „zagrożonego” przedsiębiorstwa – (dla MŚP)
– Rozszerzenie kosztów kwalifikowanych w przypadku pomocy na
utworzenie nowych miejsc pracy (świadczenia dodatkowe) oraz
warunki dotyczące kosztów niematerialnych
– Rozszerzenie pojęcia inwestycji początkowej na „przekazanie”
przedsiębiorstwa w rodzinie lub pracownikom
– Definicja sektora turystycznego
– EFEKT BODŹCA (dla dużych oraz małych przedsiębiorstw)
40
Obowiązek monitorowania
• W ciągu 20 dni roboczych przesyłanie Komisji informacji
zbiorczej dotyczącej tego rodzaju pomocy w standardowej
formie określonej w załączniku I do Wyłączenia.
– M.in. programy powinny zawierać bezpośrednie odwołanie do
Wyłączenia, informacja zbiorcza musi zawierać adres internetowy
publikacji
• Prowadzenie szczegółowej dokumentacji przez 10 lat
• Obowiązek monitorowania dla dużych projektów
inwestycyjnych, które nie podlegają obowiązkowi
indywidualnego zgłoszenia
• Obowiązek składania dorocznych raportów
• SUROWE KONSEKWENCJE braku współpracy (Art. 12 ust. 3)
41
4. Practical issues
42
Trend in the type of aid measure used (expenditure), EU 27
(2002-2007)
70
60
billion €
50
40
30
20
10
0
2002
2003
2004
2005
2006
2007
Notifiable individual aid
Schemes without individually notified applications
Block exempted aid
43
Steps
Does the measure
contain State aid?
YES
NO
Does it fit under an existing
approved scheme?
No need to notify the measure
to the Commission
YES: ensure that individual aid
complies with existing scheme
NO
Can it be applied under a
block exemption regulation
(incl. de minimis)?
YES
De minimis: implement under
de minimis conditions
NO
GBER/(BER): implement +
send summary information
to the Commission
Notify to the Commission
44
Procedures
• Granting authority prepares notification forms
• Relevant ministry sends notification electronically via
SANI system
– Perm. Rep. in Brussels = main contact point for the
Commission
• Commission examines notification and has 2 months
to reach formal decision:
–
–
–
–
No aid
No objections
Opening of formal investigation procedure
Negative decision (with or without recovery)
45
Procedures (2)
• Duration: in practice 4-6 months in average,
due to need for additional info / questions
• Other possibilities:
– Notification for legal certainty
– Pre-notification
• New procedures
– Best Practices Code
– Simplified Notification
46
Documents to be notified
• Regional aid schemes or individual aid below
notification threshold:
– Parts I & II
– Form III.4
• Large investment projects above notification
threshold:
– Parts I & II
– Form III.4
– Form III.5 (+ relevant documents)
47
5. Questions & answers
48
• Q1. How to calculate the total planned yearly
budget of the aid program in case the
duration of the program exceeds 1 year and
the amounts spent on the basis of the
program each year differ?
49
• Q2. Which of the following types of costs
constitute eligible cost for the purposes of
application of Article 13 in case of investment
in tangible assets (land, buildings, machines
and other equipment):
• Cost of supervision (including construction
supervision, author's supervision)
• Cost of plans and projects (eg. construction
plan, executive plan)
50
• Cost of technical concepts
• Cost of applying for administrative decisions,
of obtaining these
• Cost of report on environmental effects
• Cost of feasibility study
• In case of projects financed through EU funds
– the cost of information and promotion of
the project (information boards)
• Cost of preparation of the post-execution
documentation
51
• Cost of measurements and laboratory tests
confirming the correct functioning of the
installation
• Cost of choosing the contractor/builder (cost
of carrying out a tender)
• Cost of substitute investor.
• Cost of purchase and installation of IT systems
supporting the management and monitoring
of execution of the new investment,
52
• Administrative expenditure, rent, energy,
heating cost for the period of preparation or
execution of a new investment project
• Other expenditure relating to the
implementation of new investment project, in
particular – to the employees' training,
accountancy of the project, the adaptation of
office space to the needs of employees
participating in preparation or
implementation of the new investment
project,
53
• Disassembling, preparation of construction area,
construction and installation works, start-up of
machines and of the whole new investment project
• Production of capital assets by and for the
beneficiary of the aid.
• Connection to water supply system, sewage system,
gas, electricity, heating, fencing and lighting the site
of investment
• Supply of gas, electricity, water, heating and draining
sewage – necessary for the implementation of the
new investment project
• Geodesy and maintenance works
54
• Cost of opening and managing a bank account
for the needs of carrying out an investment
• Cost of insurance and guarantees relating to
carrying out new investment
• Interest on credit taken in order to finance the
investment for which the aid is granted
55
• Q3. If there is an investment project foreseen
for two sites – how should we calculate
eligible costs/ the amount of aid – if these
sites are situated in regions for which there
are different regional aid thresholds?
56
• Q4. Which EUR exchange rate should be
applied in calculation of the amount of aid
and investment costs – for which date and
how to calculate if there is a long term
investment at stake?
57
• Q5. Which of the regional aid thresholds
applies – standard or adjusted one (for large
investment projects) – in order to calculate
the admissible aid in case of project, where
the eligible cost is the cost of two year
employment exceeding 50 000 000 EUR?
58
• Q6. On the basis of Regulation 800/2008 do
the eligible costs cover the expenses incurred
in order to secure the execution of the
financing contract and the costs of opening
and managing the bank account for the needs
of the project if such expenses are incurred in
order to fulfil the obligations stemming from
national or Community law?
59
• Q7. Do the assets covered by the aid have to
be linked with a project only in a functional
way (e.g. can be made available to the cooperators within the framework the so-called
tooling agreement) or do they have to be
linked functionally and physically present in
the establishment receiving the aid?
60
• Q8. Art. 13.2 of GBER – what does it mean
that the investment must be maintained: does
this obligation relate to keeping assets or to
carrying out economic activity within the
period required?
• Q9. Art. 12.1.b) – on the basis of this
provision can aid cover the acquisition of
assets like single machines and organised
production line?
61
• Q10. The investment project will consist in
creating a new permanent establishment. At
the same time, the existing permanent
establishment will be closed down due to the
use of an outdated technology. The
construction of the new permanent
establishment will allow maintaining the
employment of people currently working in
the permanent establishment which is due to
be closed down. Can aid covered by the GBER
support such an investment?
62
• Q11. Can new investment relate to the
renovation of a historical building?
63
• Q12. An undertaking received financing to buy
hydrofoils, which were supposed to be used in the
region of a given voivodship. The undertaking would
now like to widen its scope of activity (using the
hydrofoils for the purchase of which the aid was
granted) to cover other voivodships. The aid
beneficiary can no longer carry out his activity in the
region indicated in the application for aid for reasons
independent of him - because the waterways in this
region have been closed. In such a case will the
condition to maintain the investment in the region
for which the aid has been granted be fulfilled?
64
• Q13. Article 2.15.b) of GBER provides that wage cost comprises "the
compulsory contributions, such as social security charges". At the same
time footnote 51 to point 57 of the Guidelines on national regional aid for
2007-2013 states that the wage cost means the total amount actually
payable by the beneficiary of the aid in respect of the employment
concerned, comprising (…) the compulsory social security contributions.
In light of incoherence between these two phrasings the question is
whether social security charges are:
• The only type of charges which constitutes a part of wage cost or
• Only an example of charges which qualify as wage cost and there are
other compulsory contributions that qualify as wage cost – in Poland
these would include: health insurance, contributions to the Labour Fund,
to the Fund of Guaranteed Employees' Benefits, to the Public Fund for
Rehabilitation of Disabled Persons?
65
• Q14. Art. 13.7 of GBER:
• Do costs related to acquisition of assets under
financial lease, other than land and buildings, cover
all the leasing instalments, insurance and the price of
acquisition of these assets at the expiry of the term
of lease?
• What are the eligible costs in case of leasing of land
and buildings? Do they cover all the leasing
instalments and insurance for all the term of leasing?
In case of leasing contract concluded for
indeterminate time what are the eligible costs?
66
• Q15. Entrepreneur A received regional aid for
newly created small enterprises. He plans to
sell it to B independent of him on market
conditions. In case of general succession,
where all the rights and obligations of A
relating to the aid are passed to B, is A obliged
to pay back the aid? The opinion of Polish
authorities is that no, under the condition that
indeed all the obligations relating to grant of
regional aid are passed to B.
67
• Q16a. Is a purchase of land with buildings
treated as starting work on a project?
• Q16b. If such a purchase is done before the
application for regional aid, can the cost of
such a land with buildings qualify as eligible
costs?
68
• Q17. Should wage costs be discounted if they serve as the
basis to calculate the maximum intensity of regional aid? It
seems to stem from several Commission decisions that in
such cases both the amount of aid and the wage costs are
expressed in nominal values, however it is not clear whether
such a calculation is obligatory or merely recommended.
From the wording of the Regional guidelines and Regulation
1628/2006 it stems that discounting relates only to
investment costs and not to wage cost. In the opinion of
Polish authorities there are two possibilities:
• Either to discount the aid and the wage cost or
• Not discounting either of them – using nominal value of both.
69
• Q18. Art. 13.9 of the GBER – in case of aid for
investments in the processing and marketing
of agricultural products – which thresholds
apply – the ones set in regional aid maps or
the ones set in Art. 13.9 of the GBER? In other
words – do the thresholds set in Art. 13.9
apply always (even if the ones set in regional
aid maps are higher) or do they apply only
when the thresholds set in regional aid maps
are lower?
70
• Q19. As regards regional aid – please confirm
that conclusion of a contract of lease of land
does not constitute the start of an
investment.
71
• Q20. Should the notion of "start of work" for
the purposes of application of the GBER be
interpreted in the same way as on the basis of
the Guidelines on national regional aid for
2007-2013 and as it is set in Regulation
1628/2006?
72
• Q21. If preliminary feasibility studies are
performed before the aid program is
published, can such a project still benefit from
regional aid covered by the GBER?
73
• Q22. Regional employment aid – a company
will create new posts and plans to recruit
externally and internally – plans to employ
people who are currently working at the
mother company. Will posts newly created for
employees coming from the mother company
count as “newly created employment” and
consequently – can they be covered by aid?
74
• Q23. Art. 13.4 of GBER – the exception
relating to transport sector – can a company
active in a transport sector get an SME bonus
if the investment does not relate to transport
activity?
75
Useful documents
• Wytyczne w sprawie krajowej pomocy regionalnej na lata 2007-2013, Dz.
Urz. C 54, 4.3.06, str. 13
• Mapy regionalne:
http://ec.europa.eu/comm/competition/state_aid/regional_aid/regional_
aid.html
• Rozporządzenie Komisji (WE) nr 800/2008 z dnia 6 sierpnia 2008 r.
uznające niektóre rodzaje pomocy za zgodne ze wspólnym rynkiem w
zastosowaniu art. 87 i 88 Traktatu (ogólne rozporządzenie w sprawie
wyłączeń blokowych); Dz. Urz. L 214 z 9.8.2008 r.
• Rozporządzenie Komisji (WE) nr 1627/2006 z dnia 24 października 2006 r.
zmieniające rozporządzenie Komisji (WE) nr 794/2004 w odniesieniu do
standardowych formularzy służących do zgłaszania pomocy, Dz. Urz. L 302
z 01.11.2006, str. 29
76
Further info
• State aid weekly e-news
• DG Competition website:
http://ec.europa.eu/comm/competition/state_aid/overview/sar.html
• Vademecum on State aid rules:
http://ec.europa.eu/comm/competition/state_aid/studies_reports/vadem
ecum_on_rules_09_2008_en.pdf
• European State aid network – contact points
77