Decision No 1/2002 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part

of 15 January 2002

adopting the implementing rules for the application of the provisions on State aid referred to in Article 63(1)(iii) and (2) pursuant to Article 63(3) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part

(2002/849/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part(1), and in particular Article 63(3) thereof,

Whereas:

(1) Article 63(3) of the Europe Agreement lays down that the Association Council shall, by 31 December 1997, adopt by decision the necessary rules for the implementation of paragraphs 1 and 2 of that Article.

(2) It is recalled that in accordance with Article 63(2) of the Europe Agreement, the concept of "public aid" as contained in Article 63(1)(iii) of the Europe Agreement is to be assessed on the basis of criteria arising from the application of the rules of Article 87 of the Treaty establishing the European Community, and thus covers any aid granted by the State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, in so far as it may affect trade between the European Community and the Republic of Estonia (State aid).

(3) The Republic of Estonia will appoint a national institution or administration to become a monitoring authority with responsibility for State aid matters.

(4) This monitoring authority will be responsible for the analysis of existing and future individual aid awards and programmes in the Republic of Estonia and will give an opinion as to their compatibility with Article 63(1)(iii) and (2) of the Europe Agreement.

(5) The Republic of Estonia will, when providing for the necessary rules to ensure effective supervision, ensure in particular that the monitoring authority receives in due time all the relevant information from the other government departments at central, regional and local level.

(6) The Commission of the European Communities will, under the relevant Community programmes, assist the monitoring authority by providing for documentation, training, study tours and other relevant technical assistance,

HAS DECIDED AS FOLLOWS:

Article 1

The implementing rules for the application of the provisions on State aid referred to in Article 63(1)(iii) and (2) pursuant to Article 63(3) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia of the other part, are hereby adopted.

Article 2

These implementing rules shall enter into force on the first day of the month following the adoption of the rules.

Done at Brussels, 15 January 2002.

For the Association Council

The President

J. Piqué i Camps

(1) OJ L 68, 9.3.1998, p. 3.