Brussels, 19/02/2013 (Agence Europe) - The ongoing modernisation of state aid with regional objectives is a matter of concern for MEPs of the parliamentary committee on regional development (REGI). The suppression of regional aid for large firms in the most developed areas is the subject of some debate. MEPs also stress that the review planned by the Commission should be consistent with talks under way on the legislative package revisiting cohesion policy.
Public consultation is under way with regard to review of the guidelines for state aid for the regions. The guidelines are to be presented in coming months by European Competition Commissioner Joaquin Almunia. The REGI committee is, however, already voicing its concern. Its members have called on the directors of DG Competition and Regional Policy to clarify the matter at their meeting on Tuesday 19 February.
The abolition of state aid for the large firms of the most developed regions, as envisaged by the Commission, gives rise to debate in so far as those companies could decide to relocate. Gert-Jan Koopman, Director of DG Competition, explains that they are not ruling out large businesses altogether but simply from initial aid in the most developed regions. They have not, he said, suggested banning such aid to the poorest regions, and they are studying the possibility of granting exceptions to the rule. Director for DG Regional Policy Nicholas Martyn underlines for his part that it is out of the question to stigmatise large businesses, but that state aid efficiency should be promoted. He said that, if one compares support to SMEs with that to large firms, the return on investment is greater from support to SMEs in terms of job creation. MEP Jan Olbrycht (EPP, Poland), backed by others, nonetheless affirms that the SMEs also benefit from the installation of large businesses.
MEPs, such as Constanze Krehl (S&D, Germany), fear that review of the guidelines will bring about relocation. Koopman seeks to give reassurance on this, saying that the guidelines will not be authorised if a company comes from a poor region, and if relocation is created by aid allocated.
Generally speaking, MEPs plan to ensure that the guidelines soon to be presented do not run counter to the reform of cohesion policy for 2014-2020, currently under negotiation. Krehl sums up by saying it is necessary to avoid impeding the objectives of cohesion policy. (MD/transl.jl)