# EUR-Lex - 52014PC0534 - EN

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# 52014PC0534

**Proposal for a COUNCIL REGULATION laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (codification) /* COM/2014/0534 final - 2014/0246 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           In the context of a people’s
Europe, the Commission attaches great importance to simplifying and clarifying
the law of the Union so as to make it clearer and more accessible to citizens,
thus giving them new opportunities and the chance to make use of the specific
rights it gives them.

This aim cannot be achieved so long as numerous
provisions that have been amended several times, often quite substantially,
remain scattered, so that they must be sought partly in the original instrument
and partly in later amending ones. Considerable research work, comparing many
different instruments, is thus needed to identify the current rules.

For this reason a codification of rules that
have frequently been amended is also essential if the law is to be clear and
transparent.

2.           On 1 April 1987 the Commission
decided[1] to instruct its staff that all acts should be codified after
no more than ten amendments, stressing that this is a minimum
requirement and that departments should endeavour to codify at even shorter
intervals the texts for which they are responsible, to ensure that their
provisions are clear and readily understandable.

3.           The Conclusions of the Presidency
of the Edinburgh European Council (December 1992) confirmed this[2], stressing the importance of codification as it offers
certainty as to the law applicable to a given matter at a given time.

Codification must be undertaken in full
compliance with the normal procedure for the adoption of acts of the Union.

Given that no changes of substance may be made
to the instruments affected by codification, the European Parliament, the
Council and the Commission have agreed, by an interinstitutional agreement
dated 20 December 1994, that an accelerated procedure may be used for the
fast-track adoption of codification instruments.

4.           The purpose of this proposal is
to undertake a codification of Council Regulation (EC) No 659/1999 of 22 March 1999
laying down detailed rules for the application of Article 108 of the Treaty on
the Functioning of the European Union[3].
The new Regulation will supersede the various acts incorporated in it[4]; this proposal fully preserves the content of the acts being
codified and hence does no more than bring them together with only such
formal amendments as are required by the codification exercise itself.

5.           The codification proposal
was drawn up on the basis of a preliminary consolidation, in 22 official
languages, of Regulation (EC) No 659/1999 and the instruments amending it, carried out by the Publications
Office of the European Union, by means of a data-processing system.
Where the articles have been given new numbers, the correlation between the old
and the new numbers is shown in a table set out in Annex II to the
codified Regulation.

ê 734/2013
Art. 1.1

2014/0246 (NLE)

Proposal for a

COUNCIL REGULATION

laying down detailed rules for the
application of Article 108 of the Treaty on the Functioning of the European
Union (codification)

(Text with EEA relevance)

ê 659/1999
(adapted)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty Ö on the
Functioning of the European Union Õ , and in
particular Article Ö 109 Õ thereof,

Having regard to the proposal from the
European Commission,

Having regard to the opinion of the
European Parliament[5],

Having regard to the opinion of the
European Economic and Social Committee[6],

Whereas:

ê

(1)       Council
Regulation (EC) No 659/1999[7] has been substantially amended several times[8]. In the interests of clarity and rationality, that Regulation should
be codified.

ê 659/1999
recital 1 (adapted)

(2)       Without
prejudice to special procedural rules laid down in regulations for certain
sectors, this Regulation should apply to aid in all sectors. For the purpose of
applying Articles Ö 93 Õ and Ö 107 Õ of the Treaty Ö on the
Functioning of the European Union (TFEU) Õ , the
Commission has specific competence under Article Ö 108 Õ thereof to
decide on the compatibility of State aid with the Ö internal Õ market when
reviewing existing aid, when taking decisions on new or altered aid and when
taking action regarding non-compliance with its decisions or with the
requirement as to notification.

ê 734/2013 recital 1 (adapted)

(3)       In
the context of a Ö modernised system Õ of State aid rules, to contribute both to the implementation of the
Europe 2020 strategy for growth[9] and to budgetary consolidation, Article 107TFEU should be applied
effectively and uniformly throughout the Union. Regulation (EC) No 659/1999 Ö consolidated Õ and reinforced the Commission’s previous practice of increasing
legal certainty and supporting the development of State aid policy in a
transparent environment.

ê 659/1999
recital 4 (adapted)

(4)       In
order to ensure legal certainty, it is appropriate Ö that Õ the
circumstances under which aid is to be considered as existing aid Ö be defined Õ . The completion and enhancement of the internal market is a gradual
process, reflected in the permanent development of State aid policy. Following
these developments, certain measures, which at the moment they were put into
effect did not constitute State aid, may since have become aid.

ê 659/1999
recital 5 (adapted)

(5)       In
accordance with Article Ö 108 Õ (3) Ö TFEU Õ , any plans to
grant new aid are to be notified to the Commission and should not be put into
effect before the Commission has authorised it.

ê 659/1999
recital 6 (adapted)

(6)       In accordance with Article
Ö 4(3) Õ of the Treaty Ö on European Union (TEU) Õ, Member States
are under an obligation to cooperate with the Commission and to provide it with
all information required to allow the Commission to carry out its duties under
this Regulation.

ê 659/1999
recital 7

(7)       The
period within which the Commission is to conclude the preliminary examination
of notified aid should be set at two months from the receipt of a complete
notification or from the receipt of a duly reasoned statement of the Member
State concerned that it considers the notification to be complete because the
additional information requested by the Commission is not available or has
already been provided. For reasons of legal certainty, that examination should
be brought to an end by a decision.

ê 659/1999
recital 8 (adapted)

(8)       In
all cases where, as a result of the preliminary examination, the Commission
cannot find that the aid is compatible with the Ö internal Õ market, the
formal investigation procedure should be opened in order to enable the
Commission to gather all the information it needs to assess the compatibility
of the aid and to allow the interested parties to submit their comments. The
rights of the interested parties can best be safeguarded within the framework
of the formal investigation procedure provided for Ö in Õ Article Ö 108 Õ (2) Ö TFEU Õ.

ê 734/2013
recital 2 (adapted)

(9)       In
order to assess the compatibility with the internal market of any notified or
unlawful State aid for which the Commission has exclusive competence under
Article 108 TFEU, it is appropriate to ensure that the Commission has the
power, for the purposes of enforcing the State aid rules, to request all
necessary market information from any Member State, undertaking or association
of undertakings whenever it has doubts as to the compatibility of the measure
concerned with the Union rules, and has therefore initiated the formal
investigation procedure. In particular, the Commission should use this power in
cases in which a complex substantive assessment appears necessary. In deciding
whether to use this power, the Commission should take due account of the
duration of the preliminary Ö examination Õ .

ê 734/2013
recital 3 (adapted)

(10)     For
the purpose of assessing the compatibility of an aid measure after the
initiation of the formal investigation procedure, in particular as regards
technically complex cases subject to substantive assessment, the Commission
should be able, by simple request or by decision, to require any Member State,
undertaking or association of undertakings to provide all market information
necessary for completing its assessment, if the information provided by the
Member State concerned during the course of the preliminary Ö examination Õ is not sufficient, taking due account of the principle of
proportionality, in particular for small and medium-sized enterprises.

ê 734/2013
recital 4

(11)     In
the light of the special relationship between aid beneficiaries and the Member State concerned, the Commission should be able to request information from an aid
beneficiary only in agreement with the Member State concerned. The provision of
information by the beneficiary of the aid measure in question does not constitute
a legal basis for bilateral negotiations between the Commission and the
beneficiary in question.

ê 734/2013
recital 5

(12)     The
Commission should select the addressees of information requests on the basis of
objective criteria appropriate to each case, while ensuring that, when the
request is addressed to a sample of undertakings or associations thereof, the
sample of respondents is representative within each category. The information
sought should consist, in particular, of factual company and market data and
facts-based analysis of the functioning of the market.

ê 734/2013
recital 6

(13)     The
Commission, as the initiator of the procedure, should be responsible for
verifying both the information transmission by the Member States, undertakings
or associations of undertakings, and the purported confidentiality of the
information to be disclosed.

ê 734/2013
recital 7

(14)     The
Commission should be able to enforce compliance with the requests for
information it addresses to any undertaking or association of undertakings, as
appropriate, by means of proportionate fines and periodic penalty payments. In
setting the amounts of fines and periodic penalty payments, the Commission
should take due account of the principles of proportionality and
appropriateness, in particular as regards small and medium-sized enterprises.
The rights of the parties requested to provide information should be
safeguarded by giving them the opportunity to make known their views before any
decision imposing fines or periodic penalty payments is taken. The Court of
Justice of the European Union should have unlimited jurisdiction with regard to
such fines and periodic penalties pursuant to Article 261 TFEU.

ê 734/2013
recital 8

(15)     Taking
due account of the principles of proportionality and appropriateness, the
Commission should be able to reduce the periodic penalty payments or waive them
entirely, when addressees of requests provide the information requested, albeit
after the expiry of the deadline.

ê 734/2013
recital 9 (adapted)

(16)     Fines
and periodic penalty payments are not applicable to Member States, since they
are under a duty to cooperate sincerely with the Commission in accordance with
Article 4(3)TEU, and to provide
the Commission with all information required to allow it to carry out its
duties under Ö this Õ Regulation.

ê 659/1999
recital 9

(17)     After
having considered the comments submitted by the interested parties, the
Commission should conclude its examination by means of a final decision as soon
as the doubts have been removed. It is appropriate, should this examination not
be concluded after a period of 18 months from the opening of the procedure,
that the Member State concerned has the opportunity to request a decision,
which the Commission should take within two months.

ê 734/2013
recital 10

(18)     In
order to safeguard the rights of defence of the Member State concerned, it
should be provided with copies of the requests for information sent to other Member States, undertakings or associations of undertakings, and be able to submit its
observations on the comments received. It should also be informed of the names
of the undertakings and the associations of undertakings requested, to the
extent that these entities have not demonstrated a legitimate interest in the
protection of their identity.

ê 734/2013
recital 11

(19)     The
Commission should take due account of the legitimate interests of undertakings
in the protection of their business secrets. It should not be able to use
confidential information provided by respondents, which cannot be aggregated or
otherwise be anonymised, in any decision unless it has previously obtained
their agreement to disclose that information to the Member State concerned.

ê 734/2013
recital 12 (adapted)

(20)     In
cases where information marked as confidential does not seem to be covered by
obligations of professional secrecy, it is appropriate to Ö have Õ a mechanism Ö in place according to Õ which the Commission can decide the extent to which such information
can be disclosed. Any such decision to reject a claim that information is
confidential should indicate a period at the end of which the information will
be disclosed, so that the respondent can make use of any judicial protection
available to it, including any interim measure.

ê 659/1999
recital 10

(21)     In
order to ensure that the State aid rules are applied correctly and effectively,
the Commission should have the opportunity of revoking a decision which was
based on incorrect information.

ê 659/1999
recital 11 (adapted)

(22)     In
order to ensure compliance with Article Ö 108 Õ Ö TFEU Õ , and in
particular with the notification obligation and the standstill clause in
Article Ö 108 Õ (3), the
Commission should examine all cases of unlawful aid. In the interests of
transparency and legal certainty, the procedures to be followed in such cases
should be laid down. When a Member State has not respected the notification
obligation or the standstill clause, the Commission should not be bound by time
limits.

ê 734/2013
recital 13 (adapted)

(23)     The
Commission should be able, on its own initiative, to examine information on
unlawful aid, from whatever source, in order to ensure compliance with Article
108 TFEU, and in particular with the notification obligation and standstill
clause laid down in Article 108(3) TFEU, and to assess the compatibility of an
aid with the internal market.

ê 659/1999
recital 12 (adapted)

(24)     In
cases of unlawful aid, the Commission should have the right to obtain all
necessary information enabling it to take a decision and to restore
immediately, where appropriate, undistorted competition. It is therefore
appropriate to enable the Commission to adopt interim measures addressed to the
  Member State concerned. The interim measures may take the form of information
injunctions, suspension injunctions and recovery injunctions. The Commission
should be enabled, in the event of non-compliance with an information
injunction, to decide on the basis of the information available and, in the
event of non-compliance with suspension and recovery injunctions, to refer the
matter to the Court of Justice directly, in accordance with the second subparagraph of Article Ö 108 Õ (2) Ö TFEU Õ.

ê 659/1999
recital 13 (adapted)

(25)     In
cases of unlawful aid which is not compatible with the Ö internal Õ market,
effective competition should be restored. For this purpose it is necessary that
the aid, including interest, be recovered without delay. It is appropriate that
recovery be effected in accordance with the procedures of national law. The
application of those procedures should not, by preventing the immediate and effective
execution of the Commission decision, impede the restoration of effective
competition. To achieve this result, Member States should take all necessary
measures ensuring the effectiveness of the Commission decision.

ê 659/1999 recital
14 (adapted)

(26)     For
reasons of legal certainty it is appropriate to Ö provide for Õ a period of limitation of 10 years with regard to unlawful aid,
after the expiry of which no recovery can be ordered.

ê 734/2013
recital 16 (adapted)

(27)     For
reasons of legal certainty, it is appropriate to Ö provide for Õ limitation
periods for the imposition and enforcement of fines and periodic penalty
payments.

ê 659/1999
recital 15

(28)     Misuse
of aid may have effects on the functioning of the internal market which are
similar to those of unlawful aid and should thus be treated according to
similar procedures. Unlike unlawful aid, aid which has possibly been misused is
aid which has been previously approved by the Commission. Therefore the
Commission should not be allowed to use a recovery injunction with regard to
misuse of aid.

ê 659/1999
recital 17 (adapted)

(29)     In
accordance with Article Ö 108 Õ (1) Ö TFEU Õ , the
Commission is under an obligation, in cooperation with Member States, to keep
under constant review all systems of existing aid. In the interests of
transparency and legal certainty, it is appropriate to specify the scope of
cooperation under that Article.

ê 659/1999
recital 18 (adapted)

(30)     In
order to ensure compatibility of existing aid schemes with the Ö internal Õ market and in
accordance with Article Ö 108 Õ (1) Ö TFEU Õ , the
Commission should propose appropriate measures where an existing aid scheme is
not, or is no longer, compatible with the Ö internal Õ market and should
initiate the procedure provided for in Article Ö 108 Õ (2) Ö TFEU Õ if the Member
State concerned declines to implement the proposed measures.

ê 659/1999
recital 16 (adapted)

(31)     It
is appropriate to Ö set out Õ all the possibilities which third parties have to defend their
interests in State aid procedures.

ê 734/2013
recital 14 (adapted)

(32)     Ö Complaints are an essential source of information for detecting
infringements of the Union rules on State aid. Õ To Ö ensure Õ the quality of
the complaints submitted to the Commission, and at the same time transparency
and legal certainty, it is appropriate to Ö lay down Õ the conditions
that a complaint should fulfill in order to put the Commission in possession of
information regarding alleged unlawful aid and set in motion the preliminary
examination. Submissions not meeting those conditions should be treated as
general market information, and should not necessarily lead to ex officio
investigations.

ê 734/2013
recital 15 (adapted)

(33)     Complainants
should be required to demonstrate that they are interested parties within the
meaning of Article 108(2) TFEU and of Article 1(h) of Ö this Õ Regulation. They should also be required to provide a certain amount
of information in a form that the Commission should be empowered to Ö set out Õ in an implementing provision. In order not to discourage prospective
complainants, that implementing provision should take into account that the
demands on interested parties for lodging a complaint should not be burdensome.

ê 734/2013
recital 17 (adapted)

(34)     In
order to ensure that the Commission addresses similar issues in a consistent
manner across the internal market, it is appropriate to Ö provide for Õ a specific legal
basis to launch investigations into sectors of the economy or into certain aid
instruments across several Member States. For reasons of proportionality and in
the light of the high administrative burden entailed by such investigations,
sector inquiries should be carried out only when the information available
substantiates a reasonable suspicion that State aid measures in a particular
sector could materially restrict or distort competition within the internal
market in several Member States, or that existing aid measures in a particular
sector in several Member States are not, or are no longer, compatible with the
internal market. Such inquiries would enable the Commission to deal in an
efficient and transparent way with horizontal State aid issues and to obtain an
ex ante overview of the sector concerned.

ê 659/1999
recital 19 (adapted)

(35)     In
order to allow the Commission to monitor effectively compliance with Commission
decisions and to facilitate cooperation between the Commission and Member
States for the purpose of the constant review of all existing aid schemes in
the Member States in accordance with Article Ö 108 Õ (1) Ö TFEU Õ , it is
necessary Ö that Õ a general reporting obligation with regard to all existing aid
schemes Ö be laid down Õ .

ê 659/1999
recital 20 (adapted)

(36)     Where
the Commission has serious doubts as to whether its decisions are being complied
with, it should have at its disposal additional instruments allowing it to
obtain the information necessary to verify that its decisions are being
effectively complied with. For this purpose on-site monitoring visits are an
appropriate and useful instrument, in particular for cases where aid might have
been misused. Therefore the Commission Ö should Õ be empowered to undertake on-site monitoring visits and Ö should Õ obtain the cooperation of the competent authorities of the Member
States where an undertaking opposes such a visit.

ê 734/2013
recital 18

(37)     Consistency
in the application of the State aid rules requires that arrangements be
established for cooperation between the courts of the Member States and the
Commission. Such cooperation is relevant for all courts of the Member States
that apply Article 107(1) and Article 108 TFEU. In particular, national courts
should be able to ask the Commission for information or for its opinion on
points concerning the application of State aid rules. The Commission should
also be able to submit written or oral observations to courts which are called
upon to apply Article 107(1) or Article 108 TFEU. When assisting national
courts in this respect, the Commission should act in accordance with its duty
to defend the public interest.

ê 734/2013
recital 19

(38)     Those
observations and opinions of the Commission should be without prejudice to
Article 267 TFEU and not legally bind the national courts. They should be
submitted within the framework of national procedural rules and practices
including those safeguarding the rights of the parties, in full respect of the
independence of the national courts. Observations submitted by the Commission
on its own initiative should be limited to cases that are important for the coherent
application of Article 107(1) or Article 108 TFEU, in particular to cases
which are significant for the enforcement or the further development of Union State aid case law.

ê 659/1999
recital 21

(39)     In
the interests of transparency and legal certainty, it is appropriate to give
public information on Commission decisions while, at the same time, maintaining
the principle that decisions in State aid cases are addressed to the Member
State concerned. It is therefore appropriate to publish all decisions which
might affect the interests of interested parties either in full or in a summary
form or to make copies of such decisions available to interested parties, where
they have not been published or where they have not been published in full.

ê 734/2013 recital
20 (adapted)

(40)     
The Commission, when publishing its decisions, should respect the rules on
professional secrecy, including the protection of all confidential information
and personal data, in accordance with Article 339 TFEU.

ê 734/2013
recital 21 (adapted)

(41)     The
Commission, in close liaison with the Advisory Committee on State aid, should
be able to adopt implementing provisions laying down detailed rules concerning
the Ö procedures
under this Õ Regulation,

ê 659/1999
(adapted)

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL

Article 1

Definitions

For the purposes of this Regulation Ö , the
following definitions shall apply Õ :

(a)          ‘aid’ Ö means Õ any measure
fulfilling all the criteria laid down in Article Ö 107 Õ (1) Ö TFEU Õ ;

(b)          ‘existing aid’ Ö means Õ :

ê 517/2013
Art. 1(1)(d) and Annex .4 (adapted)

(i)      without prejudice to Articles 144 and
172 of the Act of Accession of Austria, Finland and Sweden, to point 3 and the
Appendix Ö of Õ Annex IV Ö to Õ the Act of Accession of the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia, to points 2 and 3(b)
and the Appendix Ö of Õ Annex V Ö to Õ the Act of Accession of Bulgaria and Romania, and to points 2 and
3(b) and the Appendix Ö of Õ Annex IV Ö to Õ the Act of Accession of Croatia, all aid which existed prior to the
entry into force of the Ö TFEU Õ in the
respective Member States, that is to say, aid schemes and individual aid which
were put into effect before, and are still applicable after, the entry into
force of the Ö TFEU in
the respective Member States Õ ;

ê 659/1999

(ii)     authorised aid, that is to say, aid
schemes and individual aid which have been authorised by the Commission or by
the Council;

ê 659/1999
(adapted)

(iii)    aid which is deemed to have been
authorised pursuant Ö to Article 4(6) of Regulation (EC) No 659/1999 or Õ to Article 4(6) of this Regulation, or prior to Regulation Ö (EC) No 659/1999 Õ but in accordance with this procedure;

(iv)    aid which is deemed to be existing aid
pursuant to Article 17 Ö of this
Regulation Õ ;

(v)     aid which is deemed to be an existing
aid because it can be established that at the time it was put into effect it
did not constitute an aid, and subsequently became an aid due to the evolution
of the Ö internal Õ market and
without having been altered by the Member State. Where certain measures become
aid following the liberalisation of an activity by Ö Union Õ law, such
measures shall not be considered as existing aid after the date fixed for
liberalisation;

(c)          ‘new aid’
Ö means Õ all aid, that
is to say, aid schemes and individual aid, which is not existing aid, including
alterations to existing aid;

(d)          ‘aid scheme’ Ö means Õ any act on the
basis of which, without further implementing measures being required,
individual aid awards may be made to undertakings defined within the act in a
general and abstract manner and any act on the basis of which aid which is not
linked to a specific project may be awarded to one or several undertakings for
an indefinite period of time and/or for an indefinite amount;

(e)          ‘individual aid’ Ö means Õ aid that is
not awarded on the basis of an aid scheme and notifiable awards of aid on the
basis of an aid scheme;

(f)          ‘unlawful aid’ Ö means Õ new aid put
into effect in contravention of Article Ö 108 Õ (3) Ö TFEU Õ ;

(g)          ‘misuse of aid’ Ö means Õ aid used by
the beneficiary in contravention of a decision taken pursuant to Ö Article 4(3) or Article 7(3) or (4) of Regulation (EC) No
659/1999 or Õ Article 4(3) or Article 9(3) or (4) of this Regulation;

(h)          ‘interested party’ Ö means Õ any Member State and any person, undertaking or association of undertakings whose interests
might be affected by the granting of aid, in particular the beneficiary of the
aid, competing undertakings and trade associations.

CHAPTER II

PROCEDURE REGARDING NOTIFIED AID

Article 2

Notification of new aid

1. Save as otherwise provided in
regulations made pursuant to Article Ö 109 Õ Ö TFEU Õ or to other
relevant provisions thereof, any plans to grant new aid shall be notified to
the Commission in sufficient time by the Member State concerned. The Commission
shall inform the Member State concerned without delay of the receipt of a
notification.

ê 659/1999

2. In a notification, the Member State concerned shall provide all necessary information in order to enable the
Commission to take a decision pursuant to Articles 4 and 9 (hereinafter
referred to as ‘complete notification’).

Article 3

Standstill clause

Aid notifiable pursuant to Article 2(1)
shall not be put into effect before the Commission has taken, or is deemed to
have taken, a decision authorising such aid.

Article 4

Preliminary
examination of the notification and decisions of the Commission

ê 659/1999
(adapted)

1. The Commission shall examine the
notification as soon as it is received. Without prejudice to Article 10, the
Commission shall take a decision pursuant to paragraphs 2, 3 or 4 Ö of this Article Õ .

ê 659/1999

2. Where the Commission, after a
preliminary examination, finds that the notified measure does not constitute
aid, it shall record that finding by way of a decision.

ê 659/1999
(adapted)

3. Where the Commission, after a
preliminary examination, finds that no doubts are raised as to the
compatibility with the Ö internal Õ market of a
notified measure, in so far as it falls within the scope of Article Ö 107 Õ (1) Ö TFEU Õ , it shall
decide that the measure is compatible with the Ö internal Õ market
(hereinafter referred to as a ‘decision not to raise objections’). The decision
shall specify which exception under the Ö TFEU Õ has been
applied.

4. Where the Commission, after a
preliminary examination, finds that doubts are raised as to the compatibility
with the Ö internal Õ market of a
notified measure, it shall decide to initiate proceedings pursuant to Article Ö 108 Õ (2) Ö TFEU Õ (hereinafter
referred to as a ‘decision to initiate the formal investigation procedure’).

5. The decisions referred to in paragraphs
2, 3 and 4 shall be taken within two months. That period shall begin on the day
following the receipt of a complete notification. The notification Ö shall Õ be considered as complete if, within two months from its receipt, or
from the receipt of any additional information requested, the Commission does
not request any further information. The period can be extended with the
consent of both the Commission and the Member State concerned. Where
appropriate, the Commission may fix shorter time limits.

ê 659/1999

6. Where the Commission has not taken a
decision in accordance with paragraphs 2, 3 or 4 within the period laid down in
paragraph 5, the aid shall be deemed to have been authorised by the Commission.
The Member State concerned may thereupon implement the measures in question
after giving the Commission prior notice thereof, unless the Commission takes a
decision pursuant to this Article within a period of 15 working days following
receipt of the notice.

Article 5

ê 734/2013
Art. 1.2

Request for information made to the
notifying Member State

ê 659/1999

1. Where the Commission considers that
information provided by the Member State concerned with regard to a measure
notified pursuant to Article 2 is incomplete, it shall request all necessary
additional information. Where a Member State responds to such a request, the
Commission shall inform the Member State of the receipt of the response.

2. Where the Member State concerned does
not provide the information requested within the period prescribed by the
Commission or provides incomplete information, the Commission shall send a
reminder, allowing an appropriate additional period within which the
information shall be provided.

3. The notification shall be deemed to be
withdrawn if the requested information is not provided within the prescribed
period, unless, before the expiry of that period, either the period has been
extended with the consent of both the Commission and the Member State
concerned, or the Member State concerned, in a duly reasoned statement, informs
the Commission that it considers the notification to be complete because the
additional information requested is not available or has already been provided.
In that case, the period referred to in Article 4(5) shall begin on the day
following receipt of the statement. If the notification is deemed to be
withdrawn, the Commission shall inform the Member State thereof.

ê 659/1999
(adapted)

Article 6

Formal investigation procedure

1. The decision to initiate the formal
investigation procedure shall summarise the relevant issues of fact and law,
shall include a preliminary assessment of the Commission as to the aid
character of the proposed measure and shall set out the doubts as to its
compatibility with the Ö internal Õ market. The
decision shall call upon the Member State concerned and upon other interested
parties to submit comments within a prescribed period which shall normally not
exceed one month. In duly justified cases, the Commission may extend the
prescribed period.

2. The comments received shall be submitted
to the Member State concerned. If an interested party so requests, on grounds
of potential damage, its identity shall be withheld from the Member State concerned. The Member State concerned may reply to the comments submitted within a
prescribed period which shall normally not exceed one month. In duly justified
cases, the Commission may extend the prescribed period.

ê 734/2013
Art. 1.3 (adapted)

Article 7

Request for information made to
other sources

1. After the initiation of the formal
investigation procedure provided for in Article 6, in particular as regards
technically complex cases subject to substantive assessment, the Commission
may, if the information provided by a Member State concerned during the course
of the preliminary Ö examination Õ is not sufficient, request any other Member State, an undertaking or
an association of undertakings to provide all market information necessary to
enable the Commission to complete its assessment of the measure at stake taking
due account of the principle of proportionality, in particular for small and
medium-sized enterprises.

ê 734/2013
Art. 1.3

2. The Commission may request information
only:

(a)          if it is limited to formal
investigation procedures that have been identified by the Commission as being
ineffective to date; and

(b)          in so far as aid beneficiaries
are concerned, if the Member State concerned agrees to the request.

3. The undertakings or associations of
undertakings providing information following a Commission’s request for market
information based on paragraphs 6 and 7 shall submit their answer
simultaneously to the Commission and to the Member State concerned, to the
extent that the documents provided do not include information that is
confidential vis-á-vis that Member State.

The Commission shall steer and monitor the
information transmission between the Member States, undertakings or
associations of undertakings concerned, and verify the purported
confidentiality of the information transmitted.

4. The Commission shall request only
information that is at the disposal of the Member State, undertaking or
association of undertakings concerned by the request.

5. Member States shall provide the
information on the basis of a simple request and within a time limit prescribed
by the Commission which should normally not exceed one month. Where a Member State does not provide the information requested within that period or provides
incomplete information, the Commission shall send a reminder.

6. The Commission may, by simple request,
require an undertaking or an association of undertakings to provide
information. Where the Commission sends a simple request for information to an
undertaking or an association of undertakings, it shall state the legal basis
and the purpose of the request, specify what information is required and
prescribe a proportionate time limit within which the information is to be
provided. It shall also refer to the fines provided for in Article 8(1) for
supplying incorrect or misleading information.

7. The Commission may, by decision, require
an undertaking or an association of undertakings to provide information. Where
the Commission, by decision, requires an undertaking or an association of
undertakings to supply information, it shall state the legal basis, the purpose
of the request, specify what information is required and prescribe a
proportionate time limit within which the information is to be provided. It
shall also indicate the fines provided for in Article 8(1) and shall indicate
or impose the periodic penalties payments provided for in Article 8(2), as
appropriate. In addition, it shall indicate the right of the undertaking or
association of undertakings to have the decision reviewed by the Court of
Justice of the European Union.

8. When issuing a request under paragraph 1
or 6, or adopting a decision under paragraph 7, the Commission shall also
simultaneously provide the Member State concerned with a copy thereof. The
Commission shall indicate the criteria by which it selected the recipients of
the request or decision.

ê 734/2013
Art. 1.3 (adapted)

9. The owners of the undertakings or their
representatives, or, in the case of legal persons, companies, firms or
associations Ö without Õ legal
personality, the persons authorised to represent them by law or by their
constitution, shall supply on their behalf the information requested or
required. Persons duly authorised to act may supply the information on behalf
of their clients. The latter shall nevertheless be held fully responsible if
the information supplied is incorrect, incomplete or misleading.

ê 734/2013
Art. 1.3

Article 8

Fines and periodic penalty payments

1. The Commission may, if deemed necessary
and proportionate, impose by decision on undertakings or associations of
undertakings fines not exceeding 1 % of their total turnover in the
preceding business year where they, intentionally or through gross negligence:

(a)          supply incorrect or misleading
information in response to a request made pursuant to Article 7(6);

(b)          supply incorrect, incomplete or
misleading information in response to a decision adopted pursuant to Article 7(7),
or do not supply the information within the prescribed time limit.

2. The Commission may, by decision, impose
on undertakings or associations of undertakings periodic penalty payments where
an undertaking or association of undertakings fails to supply complete and
correct information as requested by the Commission by decision adopted pursuant
to Article 7(7).

The periodic penalty payments shall not
exceed 5 % of the average daily turnover of the undertaking or association
concerned in the preceding business year for each working day of delay,
calculated from the date established in the decision, until it supplies
complete and correct information as requested or required by the Commission.

3. In fixing the amount of the fine or
periodic penalty payment, regard shall be had to the nature, gravity and
duration of the infringement, taking due account of the principles of
proportionality and appropriateness, in particular for small and medium-sized
enterprises.

4. Where the undertakings or associations
of undertakings have satisfied the obligation which the periodic penalty
payment was intended to enforce, the Commission may reduce the definitive
amount of the periodic penalty payment compared to that under the original
decision imposing periodic penalty payments. The Commission may also waive any
periodic penalty payment.

5. Before adopting any decision in
accordance with paragraph 1 or 2, the Commission shall set a final deadline of
two weeks to receive the missing market information from the undertakings or associations
of undertakings concerned and also give them the opportunity of making known
their views.

6. The Court of Justice of the European
Union shall have unlimited jurisdiction within the meaning of Article 261 TFEU
to review fines or periodic penalty payments imposed by the Commission. It may
cancel, reduce or increase the fine or periodic penalty payment imposed.

ê 659/1999

Article 9

Decisions of the Commission to
close the formal investigation procedure

1. Without prejudice to Article 10, the
formal investigation procedure shall be closed by means of a decision as
provided for in paragraphs 2 to 5 of this Article.

2. Where the Commission finds that, where
appropriate following modification by the Member State concerned, the notified
measure does not constitute aid, it shall record that finding by way of a
decision.

ê 659/1999
(adapted)

3. Where the Commission finds that, where
appropriate following modification by the Member State concerned, the doubts as
to the compatibility of the notified measure with the Ö internal Õ market have
been removed, it shall decide that the aid is compatible with the Ö internal Õ market
(hereinafter referred to as a ‘positive decision’). That decision shall specify
which exception under the Ö TFEU Õ has been
applied.

4. The Commission may attach to a positive
decision conditions subject to which aid may be considered compatible with the Ö internal Õ market and may
lay down obligations to enable compliance with the decision to be monitored
(hereinafter referred to as a ‘conditional decision’).

5. Where the Commission finds that the
notified aid is not compatible with the Ö internal Õ market, it
shall decide that the aid shall not be put into effect (hereinafter referred to
as a ‘negative decision’).

6. Decisions taken pursuant to paragraphs 2 Ö to Õ 5 shall be taken as soon as the doubts referred to in Article 4(4)
have been removed. The Commission shall as far as possible endeavour to adopt a
decision within a period of 18 months from the opening of the procedure. This
time limit may be extended by common agreement between the Commission and the Member State concerned.

ê 659/1999

7. Once the time limit referred to in
paragraph 6 has expired, and should the Member State concerned so request, the
Commission shall, within two months, take a decision on the basis of the information
available to it. If appropriate, where the information provided is not
sufficient to establish compatibility, the Commission shall take a negative
decision.

ê 734/2013
Art. 1.4

8. Before adopting any decision in
accordance with paragraphs 2 to 5, the Commission shall give the Member State concerned the opportunity of making known its views, within a time-limit that
shall not normally exceed one month, on the information received by the
Commission and provided to the Member State concerned pursuant to Article 7(3).

9. The Commission shall not use
confidential information provided by respondents, which cannot be aggregated or
otherwise be anonymised, in any decision taken in accordance with paragraphs 2
to 5, unless it has obtained their agreement to disclose that information to
the Member State concerned. The Commission may take a reasoned decision, which
shall be notified to the undertaking or association of undertakings concerned,
finding that information provided by a respondent and marked as confidential is
not protected, and setting a date after which the information will be
disclosed. That period shall not be less than one month.

10. The Commission shall take due account
of the legitimate interests of undertakings in the protection of their business
secrets and other confidential information. An undertaking or an association of
undertakings providing information pursuant to Article 7, and which is not a
beneficiary of the State aid measure in question, may request, on grounds of potential
damage, that its identity be withheld from the Member State concerned.

ê 659/1999

Article 10

Withdrawal of notification

1. The Member State concerned may withdraw
the notification within the meaning of Article 2 in due time before the
Commission has taken a decision pursuant to Article 4 or 9.

2. In cases where the Commission initiated
the formal investigation procedure, the Commission shall close that procedure.

Article 11

Revocation
of a decision

ê 659/1999
(adapted)

The Commission may revoke a decision taken
pursuant to Article 4(2) or (3), or Article 9(2), (3) Ö or Õ (4), after
having given the Member State concerned the opportunity to submit its comments,
where the decision was based on incorrect information provided during the
procedure which was a determining factor for the decision. Before revoking a
decision and taking a new decision, the Commission shall open the formal
investigation procedure pursuant to Article 4(4). Articles 6, 9 and 12, Article
13(1) and Articles 15, 16 and 17 shall apply mutatis mutandis.

ê 659/1999

CHAPTER III

PROCEDURE REGARDING UNLAWFUL AID

Article 12

Examination, request for
information and information injunction

ê 734/2013
Art. 1.5

1. Without prejudice to Article 24, the
Commission may on its own initiative examine information regarding alleged
unlawful aid from whatever source.

The Commission shall examine without undue
delay any complaint submitted by any interested party in accordance with
Article 24(2) and shall ensure that the Member State concerned is kept fully
and regularly informed of the progress and outcome of the examination.

2. If necessary, the Commission shall
request information from the Member State concerned. Article 2(2) and Article
5(1) and (2) shall apply mutatis mutandis.

After the initiation of the formal
investigation procedure, the Commission may also request information from any
other Member State, from an undertaking, or association of undertakings in accordance
with Article 7 and 8, which shall apply mutatis mutandis.

ê 659/1999

3. Where, despite a reminder pursuant to
Article 5(2), the Member State concerned does not provide the information
requested within the period prescribed by the Commission, or where it provides
incomplete information, the Commission shall by decision require the
information to be provided (hereinafter referred to as an ‘information
injunction’). The decision shall specify what information is required and
prescribe an appropriate period within which it is to be supplied.

Article 13

Injunction to suspend or
provisionally recover aid

ê 659/1999
(adapted)

1. The Commission may, after giving the
Member State concerned the opportunity to submit its comments, adopt a decision
requiring the Member State to suspend any unlawful aid until the Commission has
taken a decision on the compatibility of the aid with the Ö internal Õ market
(hereinafter referred to as a ‘suspension injunction’).

2. The Commission may, after giving the
Member State concerned the opportunity to submit its comments, adopt a decision
requiring the Member State provisionally to recover any unlawful aid until the
Commission has taken a decision on the compatibility of the aid with the Ö internal Õ market
(hereinafter referred to as a ‘recovery injunction’), if Ö all Õ the following criteria are fulfilled:

(a)          according to an established
practice there are no doubts about the aid character of the measure concerned;

(b)          there is an urgency to act;

(c)          there is a serious risk of
substantial and irreparable damage to a competitor.

ê 659/1999

Recovery shall be effected in accordance
with the procedure set out in Article 16(2) and (3). After the aid has
been effectively recovered, the Commission shall take a decision within the
time limits applicable to notified aid.

The Commission may authorise the Member State to couple the refunding of the aid with the payment of rescue aid to the firm
concerned.

ê 659/1999
(adapted)

The provisions of this paragraph shall be
applicable only to unlawful aid implemented after the entry into force of Regulation Ö (EC) No 659/1999 Õ .

Article 14

Non-compliance
with an injunction decision

If the Member State fails to comply with a
suspension injunction or a recovery injunction, the Commission shall be
entitled, while carrying out the examination on the substance of the matter on the
basis of the information available, to refer the matter to the Court of Justice
of the European Ö Union Õ directly and apply for a declaration that the
failure to comply constitutes an infringement of the Ö TFEU Õ .

ê 659/1999

Article 15

Decisions of the Commission

1. The examination of possible unlawful aid
shall result in a decision pursuant to Article 4(2), (3) or (4). In the
case of decisions to initiate the formal investigation procedure, proceedings
shall be closed by means of a decision pursuant to Article 9. If a Member State fails to comply with an information injunction, that decision shall be taken
on the basis of the information available.

2. In cases of possible unlawful aid and
without prejudice to Article 13(2), the Commission shall not be bound by the
time-limit set out in Articles 4(5), 9(6) and 9(7).

3. Article 11 shall apply mutatis
mutandis.

Article 16

Recovery of aid

ê 659/1999
(adapted)

1. Where negative decisions are taken in
cases of unlawful aid, the Commission shall decide that the Member State
concerned shall take all necessary measures to recover the aid from the
beneficiary (hereinafter referred to as a ‘recovery decision’). The Commission
shall not require recovery of the aid if this would be contrary to a general
principle of Ö Union Õ law.

ê 659/1999

2. The aid to be recovered pursuant to a
recovery decision shall include interest at an appropriate rate fixed by the
Commission. Interest shall be payable from the date on which the unlawful aid
was at the disposal of the beneficiary until the date of its recovery.

ê 659/1999
(adapted)

3. Without prejudice to any order of the
Court of Justice of the European Ö Union Õ pursuant to
Article Ö 278 Õ Ö TFEU Õ , recovery shall be effected without delay and in accordance with
the procedures under the national law of the Member State concerned, provided
that they allow the immediate and effective execution of the Commission's
decision. To this effect and in the event of a procedure before national
courts, the Member States concerned shall take all necessary steps which are
available in their respective legal systems, including provisional measures,
without prejudice to Ö Union Õ law.

ê 734/2013 Art. 1.6

CHAPTER IV

LIMITATION PERIODS

ê 659/1999

Article 17

ê 734/2013
Art. 1.7

Limitation period for the recovery
of aid

ê 659/1999

1. The powers of the Commission to recover
aid shall be subject to a limitation period of ten years.

ê 659/1999
(adapted)

2. The limitation period shall begin on the
day on which the unlawful aid is awarded to the beneficiary either as
individual aid or as aid under an aid scheme. Any action taken by the
Commission or by a Member State, acting at the request of the Commission, with
regard to the unlawful aid shall interrupt the limitation period. Each
interruption shall start time running afresh. The limitation period shall be
suspended for as long as the decision of the Commission is the subject of
proceedings pending before the Court of Justice of the European Ö Union Õ .

ê 659/1999

3. Any aid with regard to which the
limitation period has expired shall be deemed to be existing aid.

ê 734/2013
Art. 1.8

Article 18

Limitation
period for the imposition of fines and periodic penalty payments

1. The powers conferred on the Commission
by Article 8 shall be subject to a limitation period of three years.

2. The period provided for in paragraph 1
shall start on the day on which the infringement referred to in Article 8 is
committed. However, in the case of continuing or repeated infringements, the
period shall begin on the day on which the infringement ceases.

3. Any action taken by the Commission for
the purpose of the investigation or proceedings in respect of an infringement
referred to in Article 8 shall interrupt the limitation period for the
imposition of fines or periodic penalty payments, with effect from the date on
which the action is notified to the undertaking or association of undertakings
concerned.

4. After each interruption, the limitation
period shall start running afresh. However, the limitation period shall expire
at the latest on the day on which a period of six years has elapsed without the
Commission having imposed a fine or a periodic penalty payment. That period
shall be extended by the time during which the limitation period is suspended
in accordance with paragraph 5.

5. The limitation period for the imposition
of fines or periodic penalty payments shall be suspended for as long as the
decision of the Commission is the subject of proceedings pending before the
Court of Justice of the European Union.

Article 19

Limitation periods for the
enforcement of fines and periodic penalty payments

1. The powers of the Commission to enforce
decisions adopted pursuant to Article 8 shall be subject to a limitation period
of five years.

2. The period provided for in paragraph 1
shall start on the day on which the decision taken pursuant to Article 8 becomes
final.

3. The limitation period provided for in
paragraph 1 shall be interrupted:

(a)          by notification of a decision
modifying the original amount of the fine or periodic penalty payment or
refusing an application for modification;

(b)          by any action of a Member State, acting at the request of the Commission, or of the Commission, intended to
enforce payment of the fine or periodic penalty payment.

4. After each interruption, the limitation
period shall start running afresh.

5. The
limitation period provided for in paragraph 1 shall be suspended for so long
as:

(a)          the respondent is allowed time to
pay;

(b)          the enforcement of payment is
suspended pursuant to a decision of the Court of Justice of the European Union.

ê 659/1999

CHAPTER V

PROCEDURE REGARDING MISUSE OF AID

ê 734/2013
Art. 1.9

Article 20

Misuse of aid

Without prejudice to Article 28, the
Commission may, in cases of misuse of aid, initiate the formal investigation
procedure pursuant to Article 4(4). Articles 6 to 9, 11 and 12, Article 13(1)
and Articles 14 to 17 shall apply mutatis mutandis.

ê 659/1999
(adapted)

CHAPTER VI

PROCEDURE REGARDING EXISTING AID SCHEMES

Article 21

Cooperation pursuant to Article Ö 108 Õ (1) Ö TFEU Õ

1. The Commission shall obtain from the
Member State concerned all necessary information for the review, in cooperation
with the Member State, of existing aid schemes pursuant to Article Ö 108 Õ (1) Ö TFEU Õ .

2. Where the Commission considers that an
existing aid scheme is not, or is no longer, compatible with the Ö internal Õ market, it
shall inform the Member State concerned of its preliminary view and give the Member State concerned the opportunity to submit its comments within a period of one month.
In duly justified cases, the Commission may extend this period.

Article 22

Proposal
for appropriate measures

Where the Commission, in the light of the
information submitted by the Member State pursuant to Article 21, concludes
that the existing aid scheme is not, or is no longer, compatible with the Ö internal Õ market, it
shall issue a recommendation proposing appropriate measures to the Member State concerned. The recommendation may propose, in particular:

(a)          substantive amendment of the aid
scheme; Ö or Õ

(b)          introduction of procedural
requirements; Ö or Õ

(c)          abolition of the aid scheme.

ê 659/1999

Article 23

Legal consequences of a proposal
for appropriate measures

1. Where the Member State concerned accepts
the proposed measures and informs the Commission thereof, the Commission shall
record that finding and inform the Member State thereof. The Member State shall be bound by its acceptance to implement the appropriate measures.

2. Where the Member State concerned does
not accept the proposed measures and the Commission, having taken into account
the arguments of the Member State concerned, still considers that those
measures are necessary, it shall initiate proceedings pursuant to Article 4(4).
Articles 6, 9 and 11 shall apply mutatis mutandis.

CHAPTER VII

INTERESTED PARTIES

Article 24

Rights of interested parties

1. Any interested party may submit comments
pursuant to Article 6 following a Commission decision to initiate the formal
investigation procedure. Any interested party which has submitted such comments
and any beneficiary of individual aid shall be sent a copy of the decision taken
by the Commission pursuant to Article 9.

ê 734/2013
Art. 1.10 (adapted)

2. Any interested party may submit a
complaint to inform the Commission of any alleged unlawful aid or any alleged
misuse of aid. To that effect, the interested party shall duly complete a form
that has been Ö set out Õ in an implementing provision referred to in Article 33 and shall
provide the mandatory information requested therein.

ê 734/2013
Art. 1.10

Where the Commission considers that the
interested party does not comply with the compulsory complaint form, or that
the facts and points of law put forward by the interested party do not provide
sufficient grounds to show, on the basis of a prima facie examination,
the existence of unlawful aid or misuse of aid, it shall inform the interested
party thereof and call upon it to submit comments within a prescribed period
which shall not normally exceed one month. If the interested party fails to
make known its views within the prescribed period, the complaint shall be
deemed to have been withdrawn. The Commission shall inform the Member State concerned when a complaint has been deemed to have been withdrawn.

The Commission shall send a copy of the
decision on a case concerning the subject matter of the complaint to the
complainant.

ê 659/1999

3. At its request, any interested party
shall obtain a copy of any decision pursuant to Articles 4 and 9, Article 12(3)
and Article 13.

ê 734/2013
Art. 1.11

CHAPTER VIII

INVESTIGATIONS INTO SECTORS OF THE
ECONOMY AND INTO AID INSTRUMENTS

Article 25

Investigations into sectors of the
economy and into aid instruments

1. Where the information available
substantiates a reasonable suspicion that State aid measures in a particular
sector or based on a particular aid instrument may materially restrict or
distort competition within the internal market in several Member States, or
that existing aid measures in a particular sector in several Member States are
not, or no longer, compatible with the internal market, the Commission may
conduct an inquiry across various Member States into the sector of the economy
or the use of the aid instrument concerned. In the course of that inquiry, the
Commission may request the Member States and/or the undertakings or
associations of undertakings concerned to supply the necessary information for
the application of Articles 107 and 108 TFEU, taking due account of the
principle of proportionality.

The Commission shall state the reasons for
the inquiry and for the choice of addressees in all requests for information
sent under this Article.

The Commission shall publish a report on
the results of its inquiry into particular sectors of the economy or particular
aid instruments across various Member States and shall invite the Member States
and any undertakings or associations of undertakings concerned to submit
comments.

2. Information obtained from sector
inquiries may be used in the framework of procedures under this Regulation.

3. Articles 5, 7 and 8 shall apply mutatis
mutandis.

ê 659/1999

CHAPTER IX

MONITORING

Article 26

Annual reports

1. Member States shall submit to the
Commission annual reports on all existing aid schemes with regard to which no
specific reporting obligations have been imposed in a conditional decision
pursuant to Article 9(4).

2. Where, despite a reminder, the Member State concerned fails to submit an annual report, the Commission may proceed in
accordance with Article 22 with regard to the aid scheme concerned.

Article 27

On-site monitoring

1. Where the Commission has serious doubts
as to whether decisions not to raise objections, positive decisions or
conditional decisions with regard to individual aid are being complied with,
the Member State concerned, after having been given the opportunity to submit
its comments, shall allow the Commission to undertake on-site monitoring
visits.

2. The officials authorised by the
Commission shall be empowered, in order to verify compliance with the decision
concerned:

(a)          to enter any premises and land of
the undertaking concerned;

(b)          to
ask for oral explanations on the spot;

(c)          to
examine books and other business records and take, or demand, copies.

The Commission may be assisted if necessary
by independent experts.

3. The Commission shall inform the Member State concerned, in good time and in writing, of the on-site monitoring visit and of
the identities of the authorised officials and experts. If the Member State has duly justified objections to the Commission's choice of experts, the experts
shall be appointed in common agreement with the Member State. The officials of
the Commission and the experts authorised to carry out the on-site monitoring
shall produce an authorisation in writing specifying the subject-matter and
purpose of the visit.

4. Officials authorised by the Member State in whose territory the monitoring visit is to be made may be present at the
monitoring visit.

5. The Commission shall provide the Member State with a copy of any report produced as a result of the monitoring visit.

ê 659/1999
(adapted)

6. Where an undertaking opposes a
monitoring visit ordered by a Commission decision pursuant to this Article, the
  Member State concerned shall afford the necessary assistance to the officials
and experts authorised by the Commission to enable them to carry out the
monitoring visit.

Article 28

Non-compliance with decisions and
judgments

1. Where the Member State concerned does
not comply with conditional or negative decisions, in particular in cases
referred to in Article 16, the Commission may refer the matter to the Court of
Justice of the European Ö Union Õ directly in accordance with Article Ö 108 Õ (2) Ö TFEU Õ .

2. If the Commission considers that the Member State concerned has not complied with a judgment of the Court of Justice of the
European Ö Union Õ , the
Commission may pursue the matter in accordance with Article Ö 260 Õ Ö TFEU Õ .

ê 734/2013
Art. 1.12

CHAPTER X

COOPERATION WITH NATIONAL COURTS

Article 29

Cooperation
with national courts

1. For the application of Article 107(1)
and Article 108 TFEU, the courts of the Member States may ask the Commission to
transmit to them information in its possession or its opinion on questions
concerning the application of State aid rules.

2. Where the coherent application of
Article 107(1) or Article 108 TFEU so requires, the Commission, acting on its
own initiative, may submit written observations to the courts of the Member
States that are responsible for applying the State aid rules. It may, with the
permission of the court in question, also make oral observations.

The Commission shall inform the Member State concerned of its intention to submit observations before formally doing so.

For the exclusive purpose of preparing its
observations, the Commission may request the relevant court of the Member State to transmit documents at the disposal of the court, necessary for the
Commission’s assessment of the matter.

ê 659/1999

CHAPTER XI

COMMON PROVISIONS

Article 30

Professional secrecy

The Commission and the Member States, their officials and other servants, including independent experts appointed by
the Commission, shall not disclose information which they have acquired through
the application of this Regulation and which is covered by the obligation of
professional secrecy.

ê 734/2013
Art. 1.13

Article 31

Addressee of decisions

1. The decisions taken pursuant to Article 7(7),
Article 8(1) and (2), and Article 9(9) shall be addressed to the undertaking or
association of undertakings concerned. The Commission shall notify the decision
to the addressee without delay and shall give the addressee the opportunity to
indicate to the Commission which information it considers to be covered by the
obligation of professional secrecy.

2. All other decisions of the Commission
taken pursuant to Chapters II, III, V, VI and IX shall be addressed to the Member State concerned. The Commission shall notify them to the Member State concerned without delay and shall give that Member State the opportunity to indicate to
the Commission which information it considers to be covered by the obligation
of professional secrecy.

ê 659/1999
(adapted)

Article 32

Publication of decisions

1. The Commission shall publish in the Official
Journal of the European Ö Union Õ a summary
notice of the decisions which it takes pursuant to Article 4(2) and (3)
and Article 22 in conjunction with Article 23(1). The summary notice shall
state that a copy of the decision may be obtained in the authentic language
version or versions.

2. The Commission shall publish in the Official
Journal of the European Ö Union Õ the decisions
which it takes pursuant to Article 4(4) in their authentic language version. In
the Official Journal published in languages other than the authentic language
version, the authentic language version Ö shall Õ be accompanied by a meaningful summary in the language of that
Official Journal.

ê 659/1999
and 734/2013 Art. 1.14 (adapted)

3. The Commission
shall publish in the Official Journal of the European Ö Union Õ the decisions
which it takes pursuant to Ö Article 8(1) and (2) and Õ Article 9.

ê 659/1999
(adapted)

4. In cases where
Article 4(6) or Article 10(2) applies, a short notice shall be published in the
Official Journal of the European Ö Union Õ .

5. The Council,
acting unanimously, may decide to publish decisions pursuant to the third
subparagraph of Article Ö 108 Õ (2) Ö TFEU Õ in the Official
Journal of the European Ö Union Õ .

ê 734/2013
Art. 1.15

Article 33

Implementing provisions

The Commission, acting in accordance with
the procedure laid down in Article 35, shall have the power to adopt
implementing provisions concerning:

(a)          the form, content and other
details of notifications;

(b)          the form, content and other
details of annual reports;

(c)          the form, content and other
details of complaints submitted in accordance with Article 12(1) and Article 24(2);

(d)          details of time-limits and the
calculation of time-limits; and

(e)          the interest rate referred to in
Article 16(2).

ê 659/1999
(adapted)

Article 34

Consultation of the Ö Advisory Õ Committee Ö on State aid Õ

1. Before adopting any implementing
provision pursuant to Article 33 Ö the
Commission shall consult the Advisory Committee on State aid set up by Council
Regulation (EU) No [.../...][codification of 994/98][10] (hereinafter
referred to as ‘the Committee’) Õ.

2. Consultation of the Committee shall take
place at a meeting called by the Commission. The drafts and documents to be
examined shall be annexed to the notification. The meeting shall take place no
earlier than two months after notification has been sent. This period may be
reduced in the case of urgency.

3. The representative of the Commission shall submit to the Committee a draft of the measures to
be taken. The Committee shall deliver an opinion on the draft, within a
time-limit which the chairman may lay down according to the urgency of the
matter, if necessary by taking a vote.

4. The opinion shall be recorded in the
minutes. In addition, each Member State shall have the right to ask to have its
position recorded in the minutes. The Committee may recommend the publication
of the opinion in the Official Journal of the European Ö Union Õ.

ê 659/1999

5. The Commission shall take the utmost
account of the opinion delivered by the Committee. It shall inform the
Committee on the manner in which its opinion has been taken into account.

ê

Article 35

Repeal

Regulation (EC) No 659/1999 is
repealed.

References to the repealed Regulation shall
be construed as references to this Regulation and shall be read in accordance
with the correlation table in Annex II.

ê 659/1999

Article 36

Entry into force

ê 659/1999
(adapted)

This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Ö Union Õ .

ê 659/1999

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For
the Council

The
President

[1]               COM(87) 868 PV.

[2]               See Annex 3 to Part A of the Conclusions.

[3]               Entered in the legislative programme for 2014.

[4]               See Annex I to this proposal.

[5]               OJ C [...], [...], p. [...].

[6]               OJ C [...], [...], p. [...].

[7]               Council Regulation (EC)
No 659/1999 of 22 March 1999 laying down detailed rules for the
application of Article 108 of the Treaty on the Functioning of the European
Union (OJ L 83, 27.3.1999, p. 1).

[8]               See Annex I.

[9]               Communication from the
Commission ‘Europe 2020: A strategy for smart, sustainable and inclusive
growth’ of 3 March 2010 (COM(2010) 2020 final).

[10]             Council Regulation (EU) No [.../...] of [...] on the
application of Articles 107 and 108 of the Treaty on the Functioning of the
European Union to certain categories of horizontal State aid (OJ L [...], [...],
p. [...]).

é

ANNEX I

Repealed
Regulation with list of its successive amendments

Council Regulation (EC) No 659/1999 || (OJ L 83, 27.3.1999, p. 1) ||

|| Point 5(6) of Annex II to the 2003 Act of Accession ||

|| Council Regulation (EC) No 1791/2006 || (OJ L 363, 20.12.2006, p. 1)

|| Council Regulation (EU) No 517/2013 || (OJ L 158, 10.6.2013, p. 1)

|| Council Regulation (EU) No 734/2013 || (OJ L 204, 31.7.2013, p. 15)

_____________

ANNEX II

Correlation Table

Regulation (EC) No 659/1999 || This Regulation

Articles 1 to 6 || Articles 1 to 6

Article 6a || Article 7

Article 6b || Article 8

Article 7 || Article 9

Article 8 || Article 10

Article 9 || Article 11

Article 10 || Article 12

Article 11(1) || Article 13(1)

Article 11(2), first subparagraph, introductory wording || Article 13(2), first subparagraph, introductory wording

Article 11(2), first subparagraph, first indent || Article 13(2), first subparagraph, point (a)

Article 11(2), first subparagraph, second indent || Article 13(2), first subparagraph, point (b)

Article 11(2), first subparagraph, third indent || Article 13(2), first subparagraph, point (c)

Article 11(2), second, third and fourth subparagraphs || Article 13(2), second, third and fourth subparagraphs

Article 12 || Article 14

Article 13 || Article 15

Article 14 || Article 16

Article 15 || Article 17

Article 15a || Article 18

Article 15b || Article 19

Article 16 || Article 20

Article 17 || Article 21

Article 18 || Article 22

Article 19 || Article 23

Article 20 || Article 24

Article 20a || Article 25

Article 21 || Article 26

Article 22 || Article 27

Article 23 || Article 28

Article 23a || Article 29

Article 24 || Article 30

Article 25 || Article 31

Article 26(1) and (2) || Article 32(1) and (2)

Article 26(2)a || Article 32(3)

Article 26(3) || Article 32(3)

Article 26(4) || Article 32(4)

Article 26(5) || Article 32(5)

Article 27 || Article 33

Article 28 || -

Article 29 || Article 34

- || Article 35

Article 30 || Article 36

- || Annex I

- || Annex II

_____________