Brussels, 10/06/2010 (Agence Europe) - The European Commission launched a public consultation on Thursday 10 June on the application of its 2005 package on services of general economic interest (SGEIs). The package sets out the conditions under which state funding of SGEIs can be considered compatible with the EU state aid rules. It was adopted in July 2005, following the Altmark ruling of the European Court of Justice.
Commission policy on the application of state aid rules to SGEIs seeks to ensure the smooth running of the internal market by providing a level playing filed for all SGEI providers, while, at the same time, safeguarding the general interest, and in particular the satisfaction of citizens' essential needs. According to the rules, public service providers can receive compensation to cover all of their net costs in the provision of the SGEI, and possibly including a reasonable profit.
In its judgment in the Altmark case, the European Court of Justice held that public service compensation does not constitute state aid within the meaning of Article 87(1) of the EC Treaty (now Article 107(1) of the Treaty on the Functioning of the European Union) provided that four cumulative conditions are met. However, where at least one of the Altmark conditions is not met, and the other state aid criteria are also present, the public service compensation at stake constitutes state aid. On the basis of this case law, the Commission, in July 2005, adopted the SGEI Package in order to define the conditions under which state aid in the form of public service compensation can be considered compatible with the internal market. (L.C./transl.rt)