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Image header Agence Europe
Europe Daily Bulletin No. 11306
Contents Publication in full By article 24 / 44
ECONOMY - FINANCE - BUSINESS / (ae) state aid

New guidance for states on local support measures

Brussels, 30/04/2015 (Agence Europe) - On Wednesday 29 April, the European Commission made seven decisions in four countries (Czech Republic, Germany, the Netherlands and the United Kingdom) on public support measures in favour of purely local operations, which will give the states and stakeholders more specific guidance on the cases in which authorisations from the Commission is not required. This guidance complements the revision of the general block exemption regulation adopted by the Commission in May of last year. The aim is further to reduce the administrative burden on the public authorities and businesses and to focus the Commission's resources on ensuring compliance with the rules on state aid in the cases with the greatest impact on the single market.

In the Czech Republic, the Commission has authorised public funding for the hospitals owned by the Hradec Králové Region. The main purpose is to ensure medical emergency services and finance the equipment required by these hospitals for the provision of these services. The Commission considers that this public funding is not liable to have an effect on trade between member states and therefore does not constitute state aid. This is firstly because the main activity of hospitals is to provide medical care for people living in the local catchment area of each hospital and, secondly, because there is no indication of cross-border investments in hospitals or of the establishment of healthcare providers from other member states in the region.

Three measures have also been approved in Germany. One of these authorisations concerns a complaint alleging that the German municipality of Durmersheim, in Baden-Württemberg, rents out facilities below the market price to the Klinikum Mittelbaden medical centre. The Commission approved the aid, on the grounds that the language barrier and features of the national health or insurance systems make cross-border competition unlikely for standard medical services. Moreover, taking into account the modest size of the centre and the rent paid, any possible advantage would be very limited and its effects negligible. In a second case, Projektgesellschaft Kiel-Gaarden GmbH, which is owned and operated by the city of Kiel, provides, on a very small scale, free information, advisory and consultancy services to interested individuals, newly created firms and SMEs in order to increase the attractiveness and economic activity of Kiel-Gaarden. These services are exclusively provided locally. The Commission found that there was no evidence of relevant cross-border investments for such services which provide basic advice to very small businesses in socially disadvantaged urban areas. Finally, a third support measure concerns the 200-bed rehabilitation clinic Landgrafen Klinik, located in Bad Nenndorf, Lower Saxony. The Land has granted the clinic compensation for losses incurred in the provision of healthcare services. The services provided by the clinic are exclusively on a local basis and its public funding has never attracted substantial investment to the region or created concrete obstacles to the establishment of other undertakings, the Commission found.

In the Netherlands, the investment project in the Dutch port of Lauwersoog consists of lengthening the quay in the fishing port, modernising its marina for pleasure boats and constructing a floating platform for recreational fishing. According to the Commission, the investment will not lead to a significant increase in the port's capacity is and, in particular, will not increase its capacity to cater for larger ships. The investment is targeted at a local market and will not have any negative impact on cross-border trade.

In the United Kingdom, the Commission concluded that the funding of a Scottish national outdoor training centre, Glenmore Lodge, does not affect trade between states and therefore does not constitute state aid. Secondly, it also found that the tax exemptions enjoyed by amateur sports clubs at local level do not constitute state aid. The tax reduction is capped at a very low level, excluding clubs which achieve significant revenue from players who are not members and which could therefore compete with golf clubs located outside the United Kingdom. (Élodie Lamer)

 

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EUROPEAN PARLIAMENT PLENARY
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