Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty
Date: 1999-03-22
Institutions: Council of the European Union
Subjects: EU aid, State aid, control of State aid, exchange of information, infringement of EU law, suspension of aid, terms for aid

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I

(Acts whose publication is obligatory)

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 Parlia-
ment (2),

Having regard to the opinion of the Economic and Social
Committee (3),

the Treaty,

(1) Whereas, without prejudice to special procedural
rules laid down in regulations for certain sectors, this
Regulation should apply to aid in all
sectors;
whereas, for the purpose of applying Articles 77 and
92 of
specific
competence 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 taking
action regarding non-compliance with its decisions
or with the requirement as to notification;

the Commission has

(2) Whereas the Commission, in accordance with the
case-law of the Court of Justice of the European
Communities, has developed and established a
consistent practice for the application of Article 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 efficient procedures pursuant to Article
93 of the Treaty, to codify and reinforce this practice
by means of a regulation;

(3) Whereas a procedural regulation on the application
of Article 93 of the Treaty will increase transparency
and legal certainty;

(4) Whereas,

in order to ensure legal certainty,

is
appropriate to define the circumstances under which
aid is to be considered as existing aid; whereas the

it

(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.

completion and enhancement of the internal market
is a gradual process, reflected in the permanent
development of State aid policy; whereas, following
these developments, certain measures, which at the
moment they were put into effect did not constitute
State aid, may since have become aid;

(5) Whereas,

in accordance with Article 93(3) of the
Treaty, 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;

(6) Whereas, in accordance with Article 5 of the Treaty,
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;

(7) Whereas 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; whereas, for 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 prelimi-
nary examination, the Commission cannot find that
the aid is compatible with the common 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; whereas the rights of the interested
parties can best be safeguarded within the framework
of the formal investigation procedure provided for
under Article 93(2) of the Treaty;

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(9) Whereas, 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;
whereas 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;

(10) Whereas, 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;

(11) Whereas, in order to ensure compliance with Article
93 of the Treaty, and in particular with the noti-
fication obligation and the standstill clause in Article
93(3), the Commission should examine all cases of
unlawful aid; whereas, in the interests of transparency
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 standstill clause, the Commission
should not be bound by time limits;

(12) Whereas in cases of unlawful aid, the Commission
should have the right to obtain all necessary in-
formation enabling it
to take a decision and to
restore immediately, where appropriate, undistorted
competition; whereas it is therefore appropriate to
enable the Commission to adopt interim measures
addressed to the Member State concerned; whereas
the interim measures may take the form of informa-
tion injunctions, suspension injunctions and 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 available and,
in the event of non-
compliance with suspension and recovery injunc-
tions, to refer the matter to the Court of Justice
direct, in accordance with the second subparagraph
of Article 93(2) of the Treaty;

the aid,

is necessary that

(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
including
interest, be recovered without delay; whereas it is
appropriate that recovery be effected in accordance
law; whereas the
with the procedures of national
application of
should not, by
those procedures
preventing the immediate and effective execution of
the Commission decision, impede the restoration of
effective competition; whereas to achieve this result,
Member States should take all necessary measures
ensuring the
the Commission
decision;

effectiveness of

(14) Whereas for reasons of legal certainty it is appro-
priate to establish a period of limitation of 10 years
with regard to unlawful aid, after the expiry of which
no recovery can be ordered;

(15) Whereas misuse of aid may have effects on the func-
tioning of the internal market which are similar to
those of unlawful aid and should thus be treated
according to similar procedures; whereas unlike
unlawful aid, aid which has possibly been misused is
aid which has been previously approved by the
Commission; whereas
therefore the Commission
should not be allowed to use a recovery injunction
with regard to misuse of aid;

(16) Whereas it is appropriate to define all the possibil-
ities in which third parties have to defend their inter-
ests in State aid procedures;

(17) Whereas in accordance with Article 93(1) of

the
Treaty, the Commission is under an obligation, in
to keep under
cooperation with Member States,
constant review all systems of existing aid; whereas in
the interests of transparency and legal certainty, it is
appropriate to specify the scope of cooperation under
that Article;

(18) Whereas, in order to ensure compatibility of existing
aid schemes with the common market and in
the
accordance with Article 93(1) of
Commission should propose appropriate measures
where an existing aid scheme is not, or is no longer,
compatible with the common market and should
initiate the procedure provided for in Article 93(2) of
the Treaty if the Member State concerned declines to
implement the proposed measures;

the Treaty,

(19) Whereas,

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 93(1) of
it is necessary to introduce a general
the Treaty,
reporting obligation with regard to all existing aid
schemes;

that

its decisions

(20) Whereas, 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
are being effectively
verify
complied with; whereas for
this purpose on-site
monitoring visits are an appropriate and useful
instrument, in particular for cases where aid might
have been misused; whereas therefore the Commis-
sion must be empowered to undertake on-site
monitoring visits and must obtain the cooperation of
the competent authorities of
the Member States
where an undertaking opposes such a visit;

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(21) Whereas, 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;
whereas it
is therefore appropriate to publish all
decisions which might affect the interests of inter-
ested parties either in full or in a summary form or
to make copies of such decisions available to inter-
ested 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 respect the rules on professional
secrecy, in accordance with Article 214 of the Treaty;

(22) Whereas the Commission, in close liaison with the
imple-
Member States, should be able to adopt
menting provisions
laying down detailed rules
concerning the procedures under this Regulation;
whereas, in order to provide for cooperation between
the Commission and the competent authorities of
the Member States,
it is appropriate to create an
Advisory Committee on State aid to be consulted
before the Commission adopts provisions pursuant
to this Regulation,

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL

Article 1

Definitions

to this Regulation but in 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 not constitute an aid, and sub-
sequently became an aid due to the evolution of
the common market and without having been
altered by the Member State. Where certain meas-
ures become aid following the liberalisation of an
activity by Community law, such measures shall
not be considered as existing aid after the date
fixed for liberalisation;

(c)

(d)

‘new aid' shall mean all aid, that is to say, aid schemes
and individual aid, which is not existing aid, including
alterations to existing aid;

‘aid scheme' shall mean any act on the basis of which,
further
without
being
implementing measures
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 indef-
inite period of time and/or for an indefinite 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 aid scheme;

(f)

‘unlawful aid' shall mean new aid put into effect in
contravention of Article 93(3) of the Treaty;

(g)

(h)

‘misuse of aid' shall mean aid used by the beneficiary
to
in contravention of a decision taken pursuant
Article 4(3) or Article 7(3) or (4) of this Regulation;

‘interested party' shall mean any Member State and
any person, undertaking or association of undertak-
ings whose interests might be affected by the granting
of aid,
the aid,
competing undertakings and trade associations.

the beneficiary of

in particular

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;

CHAPTER II

(b)

‘existing aid' shall mean:

(i) without prejudice to Articles 144 and 172 of the
Act of Accession of Austria, Finland and Sweden,
all aid which existed prior to the entry into force
of the Treaty 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 Treaty;

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

(iii) aid which is deemed to have been authorised
pursuant to Article 4(6) of this Regulation or prior

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, any plans to grant new aid shall be

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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.

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
7 (hereinafter referred to as ‘complete notification').

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 3

Article 5

Standstill clause

Request for information

Aid notifiable pursuant to Article 2(1) shall not be put
is
into effect before the Commission has taken, or
deemed to have taken, a decision 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 a decision pursuant to paragraphs
2, 3 or 4.

2. Where the Commission, after a preliminary exam-
ination, finds that the notified measure does not consti-
tute aid, it shall record that finding by way of a decision.

3. Where the Commission, after a preliminary exam-
ination, finds that no doubts are raised as to the compat-
ibility with the common market of a notified measure, in
so far as it falls within the scope of Article 92(1) of the
Treaty, it shall decide that the measure is compatible 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 exam-
ination, finds that doubts are raised as to the compatibility
with the common market of 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 the receipt of a complete noti-
fication. The notification will 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.

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 Commis-
sion 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.

The notification shall be deemed to be withdrawn if
3.
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 state-
ment, informs the Commission that it considers the noti-
fication to be complete because the additional informa-
tion 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 state-
ment. If the notification is deemed to be withdrawn, the
Commission shall inform the Member State thereof.

Article 6

Formal investigation procedure

shall

The decision to initiate the formal

include a preliminary assessment of

1.
investigation
procedure shall summarise the relevant issues of fact and
the
law,
Commission as to the aid character of
the proposed
measure and shall set out the doubts as to its compati-
bility with the common market. The decision shall call
upon the Member State concerned and upon other inter-
ested 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.

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The comments received shall be submitted to the
2.
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.

Article 7

Decisions of the Commission to close the formal
investigation procedure

1. Without prejudice to Article 8, the formal invest-
igation 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 appro-
priate following modification by the Member State
concerned, the notified measure does not constitute aid, it
shall record that finding by way of a decision.

3. Where the Commission finds that, where appro-
priate following modification by the Member State
concerned, the doubts as to the compatibility of the noti-
fied measure with the common market have been
removed, it shall decide that the aid is compatible with
the common market (hereinafter referred to as a ‘positive
decision'). That decision shall specify which exception
under the Treaty has been applied.

4.
The Commission may attach to a positive decision
conditions subject to which an aid may be considered
compatible with the common market and may lay down
obligations to enable compliance with the decision to be
monitored (hereinafter referred to as a ‘conditional deci-
sion').

5. Where the Commission finds that the notified aid is
not compatible with the common market, it shall decide
that
(hereinafter
the aid shall not be put
referred to as a ‘negative decision').

into effect

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 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.

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 suffi-

cient to establish compatibility, the Commission shall
take a negative decision.

Article 8

Withdrawal of notification

The Member State concerned may withdraw the
1.
notification within the meaning of Article 2 in due time
before the Commission has taken a decision pursuant to
Article 4 or 7.

In cases where the Commission initiated the formal
2.
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 State concerned the opportunity to
submit its comments, where the decision was based on
information provided during the procedure
incorrect
which was a determining factor for the decision. Before
revoking a decision and taking a new decision,
the
Commission shall open the formal investigation proce-
dure pursuant to Article 4(4). Articles 6, 7 and 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 informa-
tion injunction

1. Where the Commission has in its possession infor-
mation from whatever source regarding alleged unlawful
aid, it shall examine that information without delay.

If necessary, it shall request information from the
2.
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 infor-
mation requested within the period prescribed by the
Commission, or where it provides incomplete informa-
tion, the Commission shall by decision require the infor-
mation to be provided (hereinafter referred to as an ‘infor-
mation injunction'). The decision shall specify what infor-
mation is required and prescribe an appropriate period
within which it is to be supplied.

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Article 11

Article 13

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 has taken a
decision on the compatibility of the aid with the common
market (hereinafter referred to as a ‘suspension injunc-
tion').

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
common market (hereinafter referred to as a ‘recovery
injunction'), if the following criteria are fulfilled:

— according to an established practice there are no
the measure

the aid character of

doubts about
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 proce-
dure set out in Article 14(2) and (3). After the aid has been
effectively recovered,
take a
decision within the time limits applicable to notified aid.

the Commission shall

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

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 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 Communities direct and apply for a declaration
that the failure to comply constitutes an infringement of
the Treaty.

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 7. If a Member State fails to
comply with an information injunction,
that decision
shall be taken on the basis of the information available.

In cases of possible unlawful aid and without preju-
2.
dice to Article 11(2), the Commission shall not be bound
by the time-limit set out in Articles 4(5), 7(6) and 7(7).

3.

Article 9 shall apply mutatis mutandis.

Article 14

Recovery of aid

the Commission shall decide that

1. Where negative decisions are taken in cases of
unlawful aid,
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 Community law.

The aid to be recovered pursuant

2.
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, 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 avail-
able in their respective legal systems, including provi-
sional measures, without prejudice to Community law.

Article 15

Limitation period

The powers of the Commission to recover aid shall

1.
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 or as aid under an aid scheme.

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the request of

Any action taken by the Commission or by a Member
State, acting at
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 proceed-
ings pending before the Court of Justice of the European
Communities.

Any aid with regard to which the limitation period

3.
has expired, shall be deemed to be existing aid.

to the Member State concerned. The recommendation
may propose, in particular:

(a) substantive amendment of the aid scheme,

or

(b) introduction of procedural requirements,

or

(c) abolition of the aid scheme.

CHAPTER IV

Article 19

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

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 neces-
sary, it shall initiate proceedings pursuant to Article 4(4).
Articles 6, 7 and 9 shall apply mutatis mutandis.

PROCEDURE REGARDING EXISTING AID SCHEMES

CHAPTER VI

Article 17

INTERESTED PARTIES

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,
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.

shall

it

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 appropriate measures

Article 20

Rights of interested parties

Any

submit

interested party may

1.
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 bene-
ficiary of
the
decision taken by the Commission pursuant to Article 7.

individual aid shall be sent a copy of

Any interested party may inform the Commission of
2.
any alleged unlawful aid and any alleged misuse of aid.
Where the Commission considers that on the basis of the
information in its possession there are insufficient
grounds for taking a view on the case, it shall inform the
interested party thereof. Where the Commission takes a
decision on 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.

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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 reporting obligations have been
imposed in a conditional decision pursuant to Article 7(4).

2. Where, despite a reminder,
the Member State
concerned fails to submit an annual report, the Commis-
sion may proceed in accordance with 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 deci-
sions or conditional decisions with regard to individual
aid are being complied with,
the Member State
concerned, after having been given the opportunity to
its comments, shall allow the Commission to
submit
undertake on-site monitoring visits.

The officials authorised by the Commission shall be
to verify compliance with the

in order

2.
empowered,
decision concerned:

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

concerned;

The Commission shall provide the Member State
5.
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 the
monitoring visit. To this end the Member States shall,
after consulting the Commission,
take the necessary
measures within eighteen months after 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 conditional or negative decisions, in partic-
ular in cases referred to in Article 14, the Commission
may refer the matter to the Court of Justice of the Euro-
pean Communities direct in accordance with Article 93(2)
of the Treaty.

If the Commission considers that the Member State
2.
the
concerned has not complied with a judgment of
Court of Justice of
the
the European Communities,
Commission may pursue the matter in accordance with
Article 171 of the Treaty.

CHAPTER VIII

COMMON PROVISIONS

Article 24

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

Professional secrecy

(c) to examine books and other business records and take,

or demand, copies.

The Commission may be assisted if necessary by inde-
pendent experts.

The Commission shall

3.
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 justi-
fied 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.

servants,

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

including independent

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 give the latter the oppor-
tunity to indicate the Commission which information it
considers to be covered by the obligation of professional
secrecy.

27. 3. 1999

EN

Official Journal of the European Communities

L 83/9

Article 26

Article 28

Publication of decisions

The Commission shall publish in the Official
1.
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
The summary notice shall state that a copy of
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 Journal published 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 Communities.

5.
The Council, acting unanimously, may decide to
publish decisions pursuant to the third subparagraph of
Article 93(2) of the Treaty in the Official Journal of the
European Communities.

Article 27

Implementing provisions

The Commission, acting in accordance with the pro-
cedure laid down in Article 29, shall have the power to
implementing provisions concerning the form,
adopt
the form,
content and other details of notifications,
content and other details of annual reports, details of
time-limits and the calculation of time-limits, and the
interest rate referred to in Article 14(2).

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 Commission.

Article 29

Consultation of the Committee

The Commission shall consult

1.
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 docu-
ments to be examined shall be annexed to the noti-
fication. 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.

The Commission representative shall submit to the
3.
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 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 the manner 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 Communities.

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

Done at Brussels, 22 March 1999.

For the Council

The President

G. VERHEUGEN