scholarly journals The Origins of Supranational State Aid Legislations: What Policymakers Must Know and Adhere to. The Case of Estonia

2020 ◽  
Vol 10 (1) ◽  
pp. 123-145
Author(s):  
Evelin Pärn-Lee
Keyword(s):  
State Intervention ◽  
State Aid ◽  
Historical Overview ◽  
Eu Member States ◽  
Ex Post ◽  
State Subsidies ◽  
State Interference ◽  
Independent Country ◽  
The Eu ◽  
Supranational State

Abstract As an independent country, Estonia can decide on how to promote its economy through state intervention, at least in theory. At the same time, Estonia has been a WTO member since 1999 and an EU Member State since 2004 and must adhere to these rules. Both regimes limit a Member State’s ability to interfere in the economy, setting forth rules on when a state can interfere with consequences if the rules are not met. But these rules differ, and the same situation can have a different result depending on the rules applied. Also, both sets of rules limit the competence of a member country to interfere in economy differently, for example, the WTO applies a rather lenient ex post control while in the EU a strict ex ante control by the Commission is used. Also the consequences for failing to adhere are different. Although one of the smallest EU Member States and represented by the Commission in WTO roundtables, it is still relevant for Estonia to have a position on globally applied state interference measures, and present and protect its views, if needed. To successfully promote its economy nationally and in the EU, Estonian policymakers, like those of any other country in the same position, must know not only the applicable state interference rules but also the underlying principles thereof. The article will provide a historical overview of the framework of the supranational state aid regimes of the WTO and the EU, as well as the domestic rules of Estonia. It is aimed at reflecting the principles behind the state aid rules that the domestic policymakers must consider when designing national state interference measures. The author applies classical research methods, namely, reading and interpretation of texts, but also comparing the WTO, EU and Estonian laws on state subsidies.

scholarly journals EVALUATING THE EFFECT OF STATE AID TO BUSINESS BY MULTICRITERIA METHODS

2008 ◽  
Vol 9 (3) ◽  
pp. 167-180 ◽  
Author(s):  
Romualdas Ginevičius ◽  
Valentinas Podvezko ◽  
Šarūnas Bruzgė
Keyword(s):  
Influencing Factor ◽  
Great Part ◽  
State Intervention ◽  
State Aid ◽  
Structural Funds ◽  
Multiple Criteria Evaluation ◽  
Eu Structural Funds ◽  
Objective View ◽  
State Subsidies ◽  
The Eu

One of the forms of state intervention in market development is state aid (subsidies) to private sector enterprises. Over the period of 2004–2006, a great part of the EU aid was granted to business in Lithuania through the EU structural funds. State aid is a complicated phenomenon. It may have several aims, with none of them being dominant. The effects of this aid may also be varied and hardly described by a single criterion or indicator. Therefore, multiple criteria evaluation methods can be used to compare the aid to various businesses and to determine its effect on their development objectively. The analysis of state subsidies to enterprises based on these methods allowed us to state that the aid had the greatest effect on the development of projects in the areas of production, research, experiments and education. The most influencing factor is aid intensity (the more intensive the aid, the greater the effect), while the best ratios of investments to the effect obtained was found in the area of educational projects, followed by research, experimental and production projects. The aid to enterprises providing services was the least effective. The results obtained in multicriteria evaluation of state aid to business show that these methods are well suited to the analysis of this phenomenon, providing an objective view of the picture.

scholarly journals A Drop in the Ocean: Patchy Evidence on the Societal Benefits of Marine Litter Reduction

2021 ◽  
Vol 8 ◽  
Author(s):  
Jana Stoever ◽  
Katrin Rehdanz ◽  
Ikechukwu Charles Okoli
Keyword(s):  
Cost Benefit ◽  
Policy Implications ◽  
Marine Strategy Framework Directive ◽  
Marine Litter ◽  
Eu Member States ◽  
Post Evaluation ◽  
Societal Benefits ◽  
Ex Post ◽  
Key Characteristics ◽  
The Eu

The benefits of marine litter reduction to society, which are mostly non-market ones, need to be valued and quantified in monetary terms to be included in cost benefit analyses required by the EU Marine Strategy Framework Directive. This article investigates the extent to which these benefits can be derived from existing studies. We review the available empirical evidence and analyze its key characteristics based on descriptive statistics. Comparing the availability of estimates with the requirements for the EU Member States, we find a striking mismatch between the data available and the information required, which cannot be alleviated by benefit transfer. This finding is valid for both, ex-ante and ex-post, evaluation attempts. We conclude that the evidence available at present is too patchy to derive country-wide policy implications to the extent necessary to comprehensively conduct the evaluations required by the Directive.

scholarly journals Zagadnienie pomocy publicznej udzielanej na ochronę środowiska – teoria zawodności rynku a polityka konkurencji Unii Europejskiej

2015 ◽  
Vol 4 (3) ◽  
pp. 157-172
Author(s):  
Piotr Podsiadło
Keyword(s):  
European Union ◽  
State Aid ◽  
Market Failures ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
The Eu

The aim of this article is to present the conditions of admissibility of state aidin the European Union, with particular emphasis on horizontal aid for environmentalprotection. State aid measures can correct market failures and therebycontribute towards achieving common objectives. It should be targeted towardssituations where aid can bring a material improvement that the market cannotdeliver alone. The EU Member States intending to grant environmental or energyaid have to define precisely the objective pursued and explain what is the expectedcontribution of the measure towards this objective.

scholarly journals Pomoc publiczna na szkolenia pracowników a konkurencyjność gospodarki Unii Europejskiej

2017 ◽  
pp. 159-173
Author(s):  
Piotr Podsiadło
Keyword(s):  
State Aid ◽  
Point Of View ◽  
Gdp Per Capita ◽  
The European Union ◽  
Skilled Workers ◽  
Member States ◽  
Eu Member States ◽  
Positive Externalities ◽  
Per Capita ◽  
The Eu

The paper discusses guidelines for implementation of art. 107-109 of the Treaty on the Functioning of the European Union, from the point of view of state aid for training. Training usually generates positive externalities for society as a whole, since it increases the pool of skilled workers from which other firms may draw, improves the competitiveness of the EU industry and plays an important role in the EU employment strategy. Statistical analysis was carried out on state aid granted by the EU Member States in the period 2001-2014 - from the perspective of its impact on competitiveness of these countries. This should lead to verification of thesis that the amount of state aid granted by the EU Member States for training, should positively correlate with the size of the GDP per capita of these countries

The premise of the effect on trade among EU member states in projects concerning culture and heritage conservation within the framework of the implementation of the projects from EU funds – recommendations for judicial decisions

2018 ◽  
Vol 5 (2) ◽  
pp. 213
Author(s):  
Jarosław ODACHOWSKI
Keyword(s):  
Control System ◽  
State Aid ◽  
Heritage Conservation ◽  
Eu Member States ◽  
Legal Provisions ◽  
Public Aid ◽  
Legal Restrictions ◽  
Administrative Courts ◽  
And Control ◽  
The Eu

Aim: Public aid can be involved even in such peculiar public activity sector as culture and heritage conservation. Hence, the EU projects implemented in this area may be subject to legal restrictions on state aid. In this respect, particular legal doubts concerning state aid arise in the context of “impact on trade” premise. This situation is a consequence of both lack of clear definition thereof and the peculiar nature of culture projects. The present paper is aimed at identifying particular issues that ought to be taken into account when determining the possible impact on trade (recommendations for judicature). These issues aren’t actually defined in law, but only in few judgments and literature. Hence, there is a necessity to make further researches.Design / Research methods: Analysis of legal provisions, judgments and literature.Conclusions / findings: 1) It is practically impossible for relevant legal acts to encompass all possible instances of public aid in culture projects. Undoubtedly, judicature (both, of the ECJ and Polish administrative courts) attempts to fill in this peculiar gap by examining and resolving individual cases. 2) Nonetheless, the judicature is not able to account for all possible situations that can be encountered when implementing projects co-financed by the EU, either3) due to the specific nature of this project category, all the above-mentioned aspects and possible interrelations among them need to be considered in great detail. Therefore, each and every case has to be examined separately and individually 4) each of the elements should be examined in detail at every stage of determining whether public aid is granted in a given case (here: from the perspective of possible impact on trade) – both by beneficiaries of the EU funds as well as by institutions involved in management and control system and by administrative courts 5) in individual situations, the sequence of occurrence and intensity of individual elements may differ, which means that each and every case needs to be examined and resolved separately as regards the possible impact on trade and, consequently, the presence of public aid. Originality / value of the article: Contemplated problems are a subject of few judgments and literature. Value of this article is a scientific deepening of all discussed issues. This one is addressed to beneficiaries of the EU funds as well as to institutions involved in management and control system and administrative courts. Implications of the research: This article will enable beneficiaries and mentioned institutions and courts to interpret occurrence of public aid in above-mentioned projects in the appropriate way.

21. State intervention: public undertakings and state aid

2019 ◽  
pp. 495-530
Author(s):  
Sandra Marco Colino
Keyword(s):  
Competition Law ◽  
State Intervention ◽  
State Aid ◽  
The State ◽  
Basic Principles ◽  
Member States ◽  
Eu Membership ◽  
Degree Of Control ◽  
The Moment ◽  
The Eu

Competition law in the EU also exerts some degree of control over the actions of the Member States when they intervene in the market in ways which could harm the competitive process. The Member States commit to complying with these and other obligations the moment they agree to be bound by the acquis unionaire, which is a prerequisite for EU membership. There are two main provisions in this regard: Articles 106 and 107 TFEU. This chapter covers the basic principles underlying the application of Articles 106 and 107 TFEU, and explores the interplay between the general prohibitions they contain and their multiple exceptions. Article 106 ensures that undertakings owned, established, or regulated by the State are not protected or advantaged vis-à-vis private competitors, while Article 107 TFEU contains a general prohibition of state aid.

scholarly journals The 2019 ‘Fitness Check’ of State Aid Modernisation Reform of 2012—An Opportunity to Redefine and Reintroduce Sustainability into the EU/EEA State Aid Rules? The Example of the Transport Sector

2019 ◽  
Vol 11 (22) ◽  
pp. 6328 ◽  
Author(s):  
Cyndecka
Keyword(s):  
Public Support ◽  
Well Being ◽  
State Intervention ◽  
State Aid ◽  
Transport Sector ◽  
Market Regulation ◽  
The European Union ◽  
Policy Objective ◽  
Member States ◽  
The Eu

This article intends to launch a discussion on the possibilities of introducing more sustainability into the rules on granting State aid. State aid law constitutes a crucial part of the internal market regulation. In principle, granting public support to companies is prohibited in the European Union (EU) as such state intervention distorts competition. In some cases, however, aid may be allowed if it pursues a legitimate public policy objective such as research, regional development, transport or environmental protection. In 2017, the EU Member States spent EUR 116.2 billion, i.e., 0.76% of GDP, on State aid at the EU level. While aid to the environment and energy saving promotes sustainability, the question is whether other types of aid also do so. This article provides a brief explanation of the rationale behind State aid control, explains how ‘good aid’ may be approved by the European Commission or EFTA Surveillance Authority (ESA) before it is granted by the Member States and proposes taking a closer look at the current guidelines for granting aid in the transport sector. This sector has a serious impact on the environment and human well-being, while it is heavily subsidised by the state.

scholarly journals Intervention on the agricultural land market in relation to the end of the transitional period for purchasing agricultural land by foreigners

Equilibrium ◽  
2017 ◽  
Vol 12 (1) ◽  
pp. 171 ◽  
Author(s):  
Wiesława Lizińska ◽  
Renata Marks-Bielska ◽  
Karolina Babuchowska
Keyword(s):  
Agricultural Land ◽  
Value Added ◽  
State Intervention ◽  
Transitional Period ◽  
Land Market ◽  
European Economic ◽  
Traditional Form ◽  
Eu Member States ◽  
Local Traditions ◽  
The Eu

Research background: A traditional form of state intervention in agriculture comprised regulating the rights to ownership. One of the often discussed aspects of regulations refers to those binding for foreigners. Purpose of the article: The objective of the article was to analyse the position (of the European Economic and Social Committee and the Polish legislator) regarding the phenomenon of purchasing agricultural property by foreigners as well as the opinions of farmers on the consequences for the agricultural land market resulting from ending the transitional period in Poland for purchasing agricultural property by foreigners as on 1 May 2016. Methods: Direct studies were conducted in 2015 among 86 farmers in the Warmian-Masurian Voivodeship. Findings and Value added: The main reason for such a discussion conducted globally and in Europe is the phenomenon of excessive concentration and the use of land for non-agricultural purposes. Whereas, the European Economic and Social Committee indicates that in order to limit unfavourable practices in the EU member states, activities directed at preventing speculation, preserving local traditions and ensuring a proper usufruct of land should be permitted. The majority of farmers were afraid of the changes in the agricultural land market after the end of the transitional period in purchasing agricultural property by foreigners.  They emphasised the above by expressing opinions on regulations binding in the transitional period and their effectiveness. With regard to the provisions of the Act of 5 August 2015, farmers were afraid of an increase in prices of agricultural land and the capital advantage of foreigners.

Enforcement of the EU ETS in the Member States

elni Review ◽  
2015 ◽  
pp. 17-23
Author(s):  
Jonathan Verschuuren ◽  
Floor Fleurke
Keyword(s):  
Member State ◽  
Research Question ◽  
State Level ◽  
Central Research ◽  
Eu Ets ◽  
Member States ◽  
Eu Member States ◽  
Ex Post ◽  
Compliance Mechanism ◽  
The Eu

Although the EU ETS has been operating in three trading periods for ten years and has been extensively covered by legal research, there has been remarkably little attention given to the enforcement of the ETS. Although, generally, we have seen an increasing centralization of the EU ETS, monitoring and enforcement are still largely in the hands of the emissions authorities in the states in which the EU ETS operates: 28 EU Member States plus Norway, Liechtenstein and Iceland. This article reports on the main findings of an ex-post evaluation of the legal implementation of the EU ETS at Member State level with a focus on compliance. The central research question was: Has the effectiveness of the compliance mechanism of the EU ETS improved in the third period (2013-2020)? What further improvements (if any) are necessary? To answer this question, the authors of this article have described the relevant EU law in each of the three periods, reviewed previous evaluations and relevant research projects, and evaluated the implementation of the EU ETS in selected Member States, both through existing sources and through interviews with key players in the compliance mechanism at Member State level. The Member States that the authors studied for the latter part of the project were Germany, the Netherlands, Hungary, Greece, Poland and the UK.

Part II The Notion of State Aid, 5 Distortion of Competition and Effect on Trade between EU Member States

2016 ◽  
Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter
Keyword(s):  
Member State ◽  
Case Law ◽  
State Aid ◽  
Member States ◽  
Eu Member States ◽  
Common Trend ◽  
State Measure ◽  
The Common ◽  
The Impact ◽  
The Eu

This chapter discusses the distortion of competition and the effect on inter-Member State trade conditions. Article 107(1) TFEU provides that State aid is prohibited if two complementary conditions are fulfilled, namely if the State measure in issue distorts or threatens to distort competition and affects trade between Member States. The common trend within the EU Courts' case law is that no actual assessment of these criteria is required. In order to establish that competition is distorted and trade between Member States affected, it is not necessary to define the market or to carry out a thorough investigation as regards the impact that the contested measure might have upon the economic operators involved. All that matters is whether an advantage is granted to a market operator, at the detriment of another which will, as a matter of fact, encroach upon the good functioning of competition and trade between Member States.

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