WRITTEN QUESTION No. 1855/97 by Joaquín SISÓ CRUELLAS to the Commission. State aid
Date: 1997-05-30
Institutions: European Parliament, SISO CRUELLAS
Subjects: EU Member State, European Commission, State aid, aid to undertakings, application of EU law, control of State aid, economic and social cohesion, report, restriction on competition













EUR-Lex - 91997E1855 - EN






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91997E1855

WRITTEN QUESTION No. 1855/97 by Joaquín SISÓ CRUELLAS to the Commission. State aid  


Official Journal C 045 , 10/02/1998 P. 0112 





WRITTEN QUESTION E-1855/97 by Joaquín Sisó Cruellas (PPE) to the Commission (30 May 1997)Subject: State aidIn its fifth report on state aid, the Commission voices its concern at the growth in such aid. It confirms that the volume of state aid is not only not being reduced but has actually increased in four Member States and that the richer and stronger countries are the ones which grant the most aid. This not only distorts competition but also has an adverse impact on economic cohesion, since the most backward economies receive the least aid. In view of this, the Commission plans to make its inspections stricter, tighten up the criteria for authorization and ask the Member States to draw up a timetable for reducing their public aid.Can the Commission give more details of the measures it plans to carry out?Answer given by Mr Van Miert on behalf of the Commission (30 June 1997)In the conclusions set out in the fifth report on state aid ((COM(97) 170 final. )), the Commission expressed its concern about the ever-growing amount of aid granted to industry and the risks which the current trend poses for cohesion.The Commission has already stated on several occasions its intention to apply the state aid rules more strictly. The increasing number of negative decisions and repayment orders is already a sign of the stricter monitoring. There are also new draft guidelines for regional aid being prepared which envisage a reduction in the intensity of regional aid. In addition, the Commission plans to adopt stricter rules for the assessment of rescue and restructuring aid to firms in difficulty. In view of the sharp rise in the volume of ad hoc aid, it will also probably be necessary for the Commission to concentrate a larger proportion of its resources on examining the most important cases of distortion-creating ad hoc aid. To that end, it is preparing a draft 'multisectoral' framework which will lay down the criteria for examining such cases. Lastly, a draft Regulation based on Article 94 of the EC Treaty that will empower the Commission to simplify procedures by exempting certain categories of aid from the notification obligation would help to release resources and could therefore play an important role in this respect.However, despite the efforts being planned by the Commission, it alone clearly does not have the necessary means of action to reduce the volume of aid and to narrow the gap between the 'cohesion' Member States and the other Member States. The feasibility of such action is primarily dependent on the will of the Member States. The Commission will, of course, support any dialogue and any initiative in this area.