1999R0659 — EN — 01.05.2004 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC) No 659/1999
of 22 March 1999
laying down detailed rules for the application of Article 93 of the EC Treaty
(OJ L 83, 27.3.1999, p. 1)
Amended by:
Official Journal
No page date
►A1 Act concerning the conditions of accession of the Czech Republic, the
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia,the Republic of Lithuania, the Republic of Hungary, the Republic ofMalta, the Republic of Poland, the Republic of Slovenia and the Slovak
Republic and the adjustments to the Treaties on which the European
Union is foundedL 236 33 23.9.2003
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COUNCIL REGULATION (EC) No 659/1999
of 22 March 1999
laying down detailed rules for the application of Article 93 of the
EC Treaty
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
in particular Article 94 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social
Committee (3),
(1) Whereas, without prejudice to special procedural rules laid downin regulations for certain sectors, this Regulation should apply toaid in all sectors; whereas, for the purpose of applying Articles77 and 92 of the Treaty, the Commission has specific compe-tence under Article 93 thereof to decide on the compatibility of
State aid with the common market when reviewing existing aid,
when taking decisions on new or altered aid and when takingaction regarding non-compliance with its decisions or with therequirement as to notification;
(2) Whereas the Commission, in accordance with the case-law of theCourt of Justice of the European Communities, has developedand established a consistent practice for the application ofArticle 93 of the Treaty and has laid down certain procedural
rules and principles in a number of communications; whereas it
is appropriate, with a view to ensuring effective and efficientprocedures pursuant to Article 93 of the Treaty, to codify andreinforce this practice by means of a regulation;
(3) Whereas a procedural regulation on the application of Article 93of the Treaty will increase transparency and legal certainty;
(4) Whereas, in order to ensure legal certainty, it is appropriate todefine the circumstances under which aid is to be considered asexisting aid; whereas the completion and enhancement of the
internal market is a gradual process, reflected in the permanent
development of State aid policy; whereas, following these devel-opments, certain measures, which at the moment they were putinto effect did not constitute State aid, may since have becomeaid;
(5) Whereas, in accordance with Article 93(3) of the Treaty, anyplans to grant new aid are to be notified to the Commission and
should not be put into effect before the Commission has
authorised it;
(6) Whereas, in accordance with Article 5 of the Treaty, MemberStates are under an obligation to cooperate with the Commissionand to provide it with all information required to allow theCommission to carry out its duties under this Regulation;
(7) Whereas the period within which the Commission is to concludethe preliminary examination of notified aid should be set at twomonths from the receipt of a complete notification or from thereceipt 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 Commissionis not available or has already been provided; whereas, for1999R0659 — EN — 01.05.2004 — 001.001 — 2
(1) OJ C 116, 16. 4. 1998, p. 13.
(2) Opinion delivered on 14 January 1999 (not yet published in the Official
Journal).
(3) OJ C 284, 14. 9. 1998, p. 10.
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reasons of legal certainty, that examination should be brought to
an end by a decision;
(8) Whereas in all cases where, as a result of the preliminary exam-ination, the Commission cannot find that the aid is compatiblewith the common market, the formal investigation procedureshould be opened in order to enable the Commission to gatherall the information it needs to assess the compatibility of theaid and to allow the interested parties to submit their comments;
whereas the rights of the interested parties can best be safe-
guarded within the framework of the formal investigationprocedure provided for under Article 93(2) of the Treaty;
(9) Whereas, after having considered the comments submitted by theinterested parties, the Commission should conclude its examina-
tion by means of a final decision as soon as the doubts have
been removed; whereas it is appropriate, should this examinationnot be concluded after a period of 18 months from the openingof the procedure, that the Member State concerned has theopportunity to request a decision, which the Commission should
take within two months;
(10) Whereas, in order to ensure that the State aid rules are applied
correctly and effectively, the Commission should have theopportunity of revoking a decision which was based on incorrectinformation;
(11) Whereas, in order to ensure compliance with Article 93 of theTreaty, and in particular with the notification obligation and thestandstill clause in Article 93(3), the Commission shouldexamine all cases of unlawful aid; whereas, in the interests oftransparency and legal certainty, the procedures to be followed
in such cases should be laid down; whereas when a Member
State has not respected the notification obligation or the stand-still clause, the Commission should not be bound by time limits;
(12) Whereas in cases of unlawful aid, the Commission should havethe right to obtain all necessary information enabling it to take a
decision and to restore immediately, where appropriate, undis-
torted competition; whereas it is therefore appropriate to enablethe Commission to adopt interim measures addressed to theMember State concerned; whereas the interim measures maytake the form of information injunctions, suspension injunctionsand recovery injunctions; whereas the Commission should be
enabled in the event of non-compliance with an information
injunction, to decide on the basis of the information availableand, in the event of non-compliance with suspension andrecovery injunctions, to refer the matter to the Court of Justicedirect, in accordance with the second subparagraph of Article
93(2) of the Treaty;
(13) Whereas in cases of unlawful aid which is not compatible with
the common market, effective competition should be restored;whereas for this purpose it is necessary that the aid, includinginterest, be recovered without delay; whereas it is appropriate
that recovery be effected in accordance with the procedures of
national law; whereas the application of those procedures shouldnot, by preventing the immediate and effective execution of theCommission decision, impede the restoration of effective compe-tition; whereas to achieve this result, Member States should takeall necessary measures ensuring the effectiveness of the
Commission decision;
(14) Whereas for reasons of legal certainty it is appropriate to estab-
lish a period of limitation of 10 years with regard to unlawfulaid, after the expiry of which no recovery can be ordered;
(15) Whereas misuse of aid may have effects on the functioning ofthe internal market which are similar to those of unlawful aidand should thus be treated according to similar procedures;whereas unlike unlawful aid, aid which has possibly beenmisused is aid which has been previously approved by theCommission; whereas therefore the Commission should not be1999R0659 — EN — 01.05.2004 — 001.001 — 3
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allowed to use a recovery injunction with regard to misuse of
aid;
(16) Whereas it is appropriate to define all the possibilities in whichthird parties have to defend their interests in State aid proce-
dures;
(17) Whereas in accordance with Article 93(1) of the Treaty, the
Commission is under an obligation, in cooperation with MemberStates, to keep under constant review all systems of existing aid;whereas in the interests of transparency and legal certainty, it isappropriate to specify the scope of cooperation under thatArticle;
(18) Whereas, in order to ensure compatibility of existing aid
schemes with the common market and in accordance with
Article 93(1) of the Treaty, the Commission should proposeappropriate measures where an existing aid scheme is not, or isno longer, compatible with the common market and shouldinitiate the procedure provided for in Article 93(2) of the Treatyif the Member State concerned declines to implement the
proposed measures;
(19) Whereas, in order to allow the Commission to monitor effec-
tively compliance with Commission decisions and to facilitatecooperation between the Commission and Member States forthe purpose of the constant review of all existing aid schemesin the Member States in accordance with Article 93(1) of theTreaty, it is necessary to introduce a general reporting obligation
with regard to all existing aid schemes;
(20) Whereas, where the Commission has serious doubts as to
whether its decisions are being complied with, it should have atits disposal additional instruments allowing it to obtain the infor-mation necessary to verify that its decisions are being effectivelycomplied with; whereas for this purpose on-site monitoring visitsare an appropriate and useful instrument, in particular for cases
where aid might have been misused; whereas therefore the
Commission must be empowered to undertake on-site monitoringvisits and must obtain the cooperation of the competent authori-ties of the Member States where an undertaking opposes such avisit;
(21) Whereas, in the interests of transparency and legal certainty, it isappropriate 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;whereas it is therefore appropriate to publish all decisions whichmight affect the interests of interested parties either in full or ina 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; whereas the Commission,when giving public information on its decisions, should respectthe rules on professional secrecy, in accordance with Article214 of the Treaty;
(22) Whereas the Commission, in close liaison with the MemberStates, should be able to adopt implementing provisions laying
down detailed rules concerning the procedures under this Regu-
lation; whereas, in order to provide for cooperation between theCommission and the competent authorities of the MemberStates, it is appropriate to create an Advisory Committee onState aid to be consulted before the Commission adopts provi-sions pursuant to this Regulation,1999R0659 — EN — 01.05.2004 — 001.001 — 4
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HAS ADOPTED THIS REGULATION:
CHAPTER I
GENERAL
Article 1
Definitions
For the purpose of this Regulation:
(a) ‘aid’ shall mean any measure fulfilling all the criteria laid down in
Article 92(1) of the Treaty;
(b) ‘existing aid’ shall mean:
(i) without prejudice to Articles 144 and 172 of the Act of Acces-
sion of Austria, Finland and Sweden and to Annex IV, point 3and the Appendix to said Annex of the Act of Accession of
the Czech Republic, Estonia, Cyprus, Latvia, Lithuania,
Hungary, Malta, Poland, Slovenia and Slovakia, all aid whichexisted prior to the entry into force of the Treaty in the respec-tive Member States, that is to say, aid schemes and individualaid which were put into effect before, and are still applicable
after, the entry into force of the Treaty;
(ii) authorised aid, that is to say, aid schemes and individual aid
which have been authorised by the Commission or by theCouncil;
(iii) aid which is deemed to have been authorised pursuant to
Article 4(6) of this Regulation or prior to this Regulation butin accordance with this procedure;
(iv) aid which is deemed to be existing aid pursuant to Article 15;
(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 notconstitute an aid, and subsequently became an aid due to the
evolution of the common market and without having been
altered by the Member State. Where certain measures becomeaid following the liberalisation of an activity by Communitylaw, such measures shall not be considered as existing aidafter the date fixed for liberalisation;
(c) ‘new aid’ shall mean all aid, that is to say, aid schemes and indivi-
dual aid, which is not existing aid, including alterations to existingaid;
(d) ‘aid scheme’ shall mean any act on the basis of which, without
further implementing measures being required, individual aidawards 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 orseveral undertakings for an indefinite period of time and/or for anindefinite amount;
(e) ‘individual aid’ shall mean aid that is not awarded on the basis of
an aid scheme and notifiable awards of aid on the basis of an aidscheme;
(f) ‘unlawful aid’ shall mean new aid put into effect in contravention
of Article 93(3) of the Treaty;
(g) ‘misuse of aid’ shall mean aid used by the beneficiary in contra-
vention of a decision taken pursuant to Article 4(3) or Article 7(3)or (4) of this Regulation;
(h) ‘interested party’ shall mean any Member State and any person,
undertaking or association of undertakings whose interests mightbe affected by the granting of aid, in particular the beneficiary ofthe aid, competing undertakings and trade associations.1999R0659 — EN — 01.05.2004 — 001.001 — 5
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CHAPTER II
PROCEDURE REGARDING NOTIFIED AID
Article 2
Notification of new aid
1. Save as otherwise provided in regulations made pursuant to
Article 94 of the Treaty or to other relevant provisions thereof, anyplans to grant new aid shall be notified to the Commission in sufficienttime by the Member State concerned. The Commission shall inform the
Member State concerned without delay of the receipt of a notification.
2. In a notification, the Member State concerned shall provide all
necessary information in order to enable the Commission to take adecision pursuant to Articles 4 and 7 (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 deci-sion authorising such aid.
Article 4
Preliminary examination of the notification and decisions of the
Commission
1. The Commission shall examine the notification as soon as it is
received. Without prejudice to Article 8, the Commission shall take adecision pursuant to paragraphs 2, 3 or 4.
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.
3. Where the Commission, after a preliminary examination, finds
that no doubts are raised as to the compatibility with the commonmarket of a notified measure, in so far as it falls within the scope ofArticle 92(1) of the Treaty, it shall decide that the measure is compa-tible with the common market (hereinafter referred to as a ‘decision not
to raise objections’). The decision shall specify which exception under
the Treaty has been applied.
4. Where the Commission, after a preliminary examination, finds
that doubts are raised as to the compatibility with the common marketof a notified measure, it shall decide to initiate proceedings pursuant to
Article 93(2) of the Treaty (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 thereceipt of a complete notification. The notification will be consideredas 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 theconsent of both the Commission and the Member State concerned.Where appropriate, the Commission may fix shorter time limits.
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 measuresin question after giving the Commission prior notice thereof, unlessthe Commission takes a decision pursuant to this Article within aperiod of 15 working days following receipt of the notice.1999R0659 — EN — 01.05.2004 — 001.001 — 6
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Article 5
Request for information
1. Where the Commission considers that information provided by
the Member State concerned with regard to a measure notified pursuantto Article 2 is incomplete, it shall request all necessary additional infor-mation. Where a Member State responds to such a request, theCommission shall inform the Member State of the receipt of the
response.
2. Where the Member State concerned does not provide the informa-
tion requested within the period prescribed by the Commission or
provides incomplete information, the Commission shall send areminder, allowing an appropriate additional period within which theinformation shall be provided.
3. The notification shall be deemed to be withdrawn if the requested
information is not provided within the prescribed period, unless beforethe 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, informsthe Commission that it considers the notification to be completebecause the additional information requested is not available or hasalready been provided. In that case, the period referred to in Article4(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.
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 preli-minary 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 common market. The decision shall call upon the MemberState concerned and upon other interested parties to submit commentswithin 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 commentssubmitted within a prescribed period which shall normally not exceedone month. In duly justified cases, the Commission may extend theprescribed period.
Article 7
Decisions of the Commission to close the formal investigation
procedure
1. Without prejudice to Article 8, the formal investigation procedure
shall be closed by means of a decision as provided for in paragraphs 2to 5 of this Article.
2. Where the Commission finds that, where appropriate following
modification by the Member State concerned, the notified measuredoes not constitute aid, it shall record that finding by way of a deci-
sion.
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 common market havebeen removed, it shall decide that the aid is compatible with thecommon market (hereinafter referred to as a ‘positive decision’). Thatdecision shall specify which exception under the Treaty has beenapplied.1999R0659 — EN — 01.05.2004 — 001.001 — 7
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4. The Commission may attach to a positive decision conditions
subject to which an aid may be considered compatible with thecommon market and may lay down obligations to enable compliance
with the decision to be monitored (hereinafter referred to as a ‘condi-
tional decision’).
5. Where the Commission finds that the notified aid is not compa-
tible with the common 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, 3, 4 and 5 shall be
taken as soon as the doubts referred to in Article 4(4) have beenremoved. The Commission shall as far as possible endeavour to adopta decision within a period of 18 months from the opening of the proce-
dure. This time limit may be extended by common agreement between
the Commission and the Member State concerned.
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 notsufficient to establish compatibility, the Commission shall take a nega-tive decision.
Article 8
Withdrawal of notification
1. The Member State concerned may withdraw the notification
within the meaning of Article 2 in due time before the Commissionhas taken a decision pursuant to Article 4 or 7.
2. In cases where the Commission initiated the formal investigation
procedure, the Commission shall close that procedure.
Article 9
Revocation of a decision
The Commission may revoke a decision taken pursuant to Article 4(2)
or (3), or Article 7(2), (3), (4), after having given the Member Stateconcerned the opportunity to submit its comments, where the decisionwas based on incorrect information provided during the procedurewhich 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, 7and 10, Article 11(1), Articles 13, 14 and 15 shall apply mutatis
mutandis .
CHAPTER III
PROCEDURE REGARDING UNLAWFUL AID
Article 10
Examination, request for information and information injunction
1. Where the Commission has in its possession information from
whatever source regarding alleged unlawful aid, it shall examine thatinformation without delay.
2. If necessary, it shall request information from the Member State
concerned. Article 2(2) and Article 5(1) and (2) shall apply mutatis
mutandis .
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 incompleteinformation, the Commission shall by decision require the informationto be provided (hereinafter referred to as an ‘information injunction’).The decision shall specify what information is required and prescribean appropriate period within which it is to be supplied.1999R0659 — EN — 01.05.2004 — 001.001 — 8
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Article 11
Injunction to suspend or provisionally recover aid
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 hastaken a decision on the compatibility of the aid with the commonmarket (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 theMember State provisionally to recover any unlawful aid until theCommission has taken a decision on the compatibility of the aid with
the common market (hereinafter referred to as a ‘recovery injunction’),
if the following criteria are fulfilled:
— according to an established practice there are no doubts about the
aid character of the measure concerned
and
— there is an urgency to act
and
— there is a serious risk of substantial and irreparable damage to a
competitor.
Recovery shall be effected in accordance with the procedure set out in
Article 14(2) and (3). After the aid has been effectively recovered, theCommission shall take a decision within the time limits applicable tonotified aid.
The Commission may authorise the Member State to couple the
refunding of the aid with the payment of rescue aid to the firmconcerned.
The provisions of this paragraph shall be applicable only to unlawful
aid implemented after the entry into force of this Regulation.
Article 12
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 carryingout the examination on the substance of the matter on the basis of theinformation available, to refer the matter to the Court of Justice of theEuropean Communities direct and apply for a declaration that the
failure to comply constitutes an infringement of the Treaty.
Article 13
Decisions of the Commission
1. The examination of possible unlawful aid shall result in a deci-
sion pursuant to Article 4(2), (3) or (4). In the case of decisions to
initiate the formal investigation procedure, proceedings shall be closedby means of a decision pursuant to Article 7. If a Member State fails tocomply with an information injunction, that decision shall be taken onthe basis of the information available.
2. In cases of possible unlawful aid and without prejudice to Article
11(2), the Commission shall not be bound by the time-limit set out inArticles 4(5), 7(6) and 7(7).
3. Article 9 shall apply mutatis mutandis .
Article 14
Recovery of aid
1. Where negative decisions are taken in cases of unlawful aid, the
Commission shall decide that the Member State concerned shall takeall necessary measures to recover the aid from the beneficiary (herein-after referred to as a ‘recovery decision’). The Commission shall not1999R0659 — EN — 01.05.2004 — 001.001 — 9
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require recovery of the aid if this would be contrary to a general prin-
ciple of Community law.
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.
3. Without prejudice to any order of the Court of Justice of the
European Communities pursuant to Article 185 of the Treaty, recoveryshall be effected without delay and in accordance with the proceduresunder the national law of the Member State concerned, provided thatthey allow the immediate and effective execution of the Commission'sdecision. 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 provi-sional measures, without prejudice to Community law.
Article 15
Limitation period
1. The powers of the Commission to recover aid shall be subject to
a limitation period of ten years.
2. The limitation period shall begin on the day on which the
unlawful aid is awarded to the beneficiary either as individual aid oras aid under an aid scheme. Any action taken by the Commission orby a Member State, acting at the request of the Commission, withregard to the unlawful aid shall interrupt the limitation period. Eachinterruption 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 theEuropean Communities.
3. Any aid with regard to which the limitation period has expired,
shall be deemed to be existing aid.
CHAPTER IV
PROCEDURE REGARDING MISUSE OF AID
Article 16
Misuse of aid
Without prejudice to Article 23, the Commission may in cases of
misuse of aid open the formal investigation procedure pursuant to
Article 4(4). Articles 6, 7, 9 and 10, Article 11(1), Articles 12, 13, 14
and 15 shall apply mutatis mutandis .
CHAPTER V
PROCEDURE REGARDING EXISTING AID SCHEMES
Article 17
Cooperation pursuant to Article 93(1) of the Treaty
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 93(1) of
the Treaty.
2. Where the Commission considers that an existing aid scheme is
not, or is no longer, compatible with the common market, it shallinform the Member State concerned of its preliminary view and givethe Member State concerned the opportunity to submit its commentswithin a period of one month. In duly justified cases, the Commissionmay extend this period.1999R0659 — EN — 01.05.2004 — 001.001 — 10
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Article 18
Proposal for appropriate measures
Where the Commission, in the light of the information submitted by
the Member State pursuant to Article 17, concludes that the existing
aid scheme is not, or is no longer, compatible with the common
market, it shall issue a recommendation proposing appropriatemeasures to the Member State concerned. The recommendation maypropose, in particular:
(a) substantive amendment of the aid scheme,
or
(b) introduction of procedural requirements,
or
(c) abolition of the aid scheme.
Article 19
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 shallrecord that finding and inform the Member State thereof. The MemberState shall be bound by its acceptance to implement the appropriatemeasures.
2. Where the Member State concerned does not accept the proposed
measures and the Commission, having taken into account the argu-ments of the Member State concerned, still considers that thosemeasures are necessary, it shall initiate proceedings pursuant to Article
4(4). Articles 6, 7 and 9 shall apply mutatis mutandis .
CHAPTER VI
INTERESTED PARTIES
Article 20
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 deci-sion taken by the Commission pursuant to Article 7.
2. Any interested party may inform the Commission of any alleged
unlawful aid and any alleged misuse of aid. Where the Commissionconsiders that on the basis of the information in its possession thereare insufficient grounds for taking a view on the case, it shall informthe interested party thereof. Where the Commission takes a decisionon a case concerning the subject matter of the information supplied, it
shall send a copy of that decision to the interested party.
3. At its request, any interested party shall obtain a copy of any
decision pursuant to Articles 4 and 7, Article 10(3) and Article 11.
CHAPTER VII
MONITORING
Article 21
Annual reports
1. Member States shall submit to the Commission annual reports on
all existing aid schemes with regard to which no specific reportingobligations have been imposed in a conditional decision pursuant toArticle 7(4).1999R0659 — EN — 01.05.2004 — 001.001 — 11
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2. Where, despite a reminder, the Member State concerned fails to
submit an annual report, the Commission may proceed in accordancewith Article 18 with regard to the aid scheme concerned.
Article 22
On-site monitoring
1. Where the Commission has serious doubts as to whether decisions
not to raise objections, positive decisions or conditional decisions withregard to individual aid are being complied with, the Member Stateconcerned, after having been given the opportunity to submit itscomments, 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 MemberState. The officials of the Commission and the experts authorised tocarry 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.
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 themonitoring visit. To this end the Member States shall, after consultingthe Commission, take the necessary measures within eighteen monthsafter the entry into force of this Regulation.
Article 23
Non-compliance with decisions and judgments
1. Where the Member State concerned does not comply with condi-
tional or negative decisions, in particular in cases referred to in Article
14, the Commission may refer the matter to the Court of Justice of theEuropean Communities direct in accordance with Article 93(2) of theTreaty.
2. If the Commission considers that the Member State concerned has
not complied with a judgment of the Court of Justice of the EuropeanCommunities, the Commission may pursue the matter in accordancewith Article 171 of the Treaty.
CHAPTER VIII
COMMON PROVISIONS
Article 24
Professional secrecy
The Commission and the Member States, their officials and other
servants, including independent experts appointed by the Commission,1999R0659 — EN — 01.05.2004 — 001.001 — 12
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shall not disclose information which they have acquired through the
application of this Regulation and which is covered by the obligationof professional secrecy.
Article 25
Addressee of decisions
Decisions taken pursuant to Chapters II, III, IV, V and VII shall be
addressed to the Member State concerned. The Commission shall
notify them to the Member State concerned without delay and givethe latter the opportunity to indicate the Commission which informa-tion it considers to be covered by the obligation of professionalsecrecy.
Article 26
Publication of decisions
1. The Commission shall publish in the Official Journal of the
European Communities a summary notice of the decisions which it
takes pursuant to Article 4(2) and (3) and Article 18 in conjunction
with Article 19(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 Communities the decisions which it takes pursuant to Article
4(4) in their authentic language version. In the Official Journalpublished in languages other than the authentic language version, the
authentic language version will be accompanied by a meaningful
summary in the language of that Official Journal.
3. The Commission shall publish in the Official Journal of the
European Communities the decisions which it takes pursuant to Article
7.
4. In cases where Article 4(6) or Article 8(2) applies, a short notice
shall be published in the Official Journal of the European Commu-
nities .
5. The Council, acting unanimously, may decide to publish deci-
sions pursuant to the third subparagraph of Article 93(2) of the Treatyin the Official Journal of the European Communities .
Article 27
Implementing provisions
The Commission, acting in accordance with the procedure laid down in
Article 29, shall have the power to adopt implementing provisionsconcerning the form, content and other details of notifications, theform, content and other details of annual reports, details of time-limitsand the calculation of time-limits, and the interest rate referred to in
Article 14(2).
Article 28
Advisory Committee on State aid
An Advisory Committee on State aid (hereinafter referred to as the
‘Committee’) shall be set up. It shall be composed of representatives
of the Member States and chaired by the representative of the Commis-sion.
Article 29
Consultation of the Committee
1. The Commission shall consult the Committee before adopting any
implementing provision pursuant to Article 27.
2. Consultation of the Committee shall take place at a meeting
called by the Commission. The drafts and documents to be examinedshall be annexed to the notification. The meeting shall take place no1999R0659 — EN — 01.05.2004 — 001.001 — 13
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earlier than two months after notification has been sent. This period
may be reduced in the case of urgency.
3. The Commission representative 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 laydown according to the urgency of the matter, if necessary by taking avote.
4. The opinion shall be recorded in the minutes; in addition, each
Member State shall have the right to ask to have its position recordedin the minutes. The Committee may recommend the publication of this
opinion in the Official Journal of the European Communities .
5. The Commission shall take the utmost account of the opinion
delivered by the Committee. It shall inform the Committee on themanner in which its opinion has been taken into account.
Article 30
Entry into force
This Regulation shall enter into force on the twentieth day following
that of its publication in the Official Journal of the European Commu-
nities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States.1999R0659 — EN — 01.05.2004 — 001.001 — 14