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Europe Daily Bulletin No. 10553
ECONOMY - FINANCE - BUSINESS / (ae) state aid

Consultation on rules applicable to maritime sector

Brussels, 14/02/2012 (Agence Europe) - The Commission may soon revise the rules on state aid to the maritime sector. A consultation has been opened on this subject to allow the stakeholders to make their recommendations. Nonetheless, the orientations applied at the moment will remain valid until further notice. “In 1989, the Commission adopted its first orientations on state aid to maritime transport with a view to encouraging maritime companies to operate in Europe and from Europe (…). It is time to see whether these orientations remain valid in light of changes on the market”, said the commissioner in charge of competition policy, Joaquin Almunia.

On Tuesday 14 February, the European Commission announced the opening of a public consultation on state aid to the maritime sector. Currently, joint criteria are in place at European level to ensure that if state aid is granted, it does not harm the internal market or competition. If the state aid is permitted, it is because it makes it possible to compensate for the trend of shipping companies to fly the flag of non-European nations. These “flags of convenience” allow these companies to take on labour at lower costs and be subject to less binding tax and safety legislation. European state aid, which is authorised to an extent, should provide incentives for shipping companies to register within the EU and contribute to its employment market. The state aid criteria applicable have been taken up in orientations adopted by the Commission in 1989, and have been updated twice since then, in 1997 and 2004.

The opening of a public consultation could lead to a new revision of these orientations. The Commission will decide whether it is worthwhile to update them again, depending on the observations made by those who take part in the public consultation. In particular, the Commission wishes to receive recommendations from the public authorities which use state aid, such as members of the EU or their regions. Through the Conference of Peripheral Maritime Regions, the islands have already stated that they would like to enjoy the option of implementing a minimum of intervention resources, in the maritime sector among others, and call in particular for aid to be better communicated to these regions, to allow them to make full use of these tools. The consultation will be open until mid-May, but the Commission has not yet set a date for the current orientations to expire. (MD/transl.fl)

 

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