Although governments are not authorised to provide specific undertakings with financial benefits that are denied to other companies without the prior approval of the European Commission, the Commission does consider state aid desirable under certain circumstances.
Background
The European Commission has implemented new, temporary
measures designed to provide aid in the current financial crisis.
Realising that government aid can help boost innovation, employment
and facilitate environmental measures, the European Commission has
temporarily (i.e. until the end of 2010) relaxed a number of
conditions. As a result, the process for granting aid has been
simplified and governments can now provide more aid more easily.
While the current exemptions remain in effect, the approval process
for government aid has been made significantly quicker.
'Crisis aid' must be reported to the European Commission's Economic
Crisis Team ('ECT').
The process of reporting the relief measure is less time-consuming
than the normal procedure: both Dutch and German measures were for
example approved within a matter of weeks. As a rule, general
regulations are approved more easily than more detailed
regulations. However, the ECT may still require applicants to
complete the full reporting procedure. The framework has
facilitated the process of granting aid, which may take on the form
of reduced interest rates, guarantees, support for the production
of sustainable products, venture capital for small and medium-sized
enterprises ('SMEs') or direct aid up to EUR 500,000.
Vigilance required (case in point: Van der
Laan subsidies)
As a receiver of crisis aid it is important for
undertakings to remain alert, as it is not always clear whether the
government has notified the European Commission of plans to grant
aid, or whether these plans have been exempted by the European
Commission. One such example is the 'Van der Laan-subsidy'
(named after the Minister for Housing, Communities and Integration;
Eberhard van der Laan), a measure from the Dutch central government
to stimulate housing construction. The Minister has not requested
the Commission to approve this measure. This means that when local
authorities grant a Van der Laan subsidy to undertakings
the measure could be qualified as unlawful aid.
