2002/137/EC: Decision No 6/2001 of the EU-Slovak Republic Association Council of 22 November 2001 adopting the implementing rules for the application of the provisions on State aid referred to in Article 64(1)(iii) and (2), pursuant to Article 64(3), of the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part, and in Article 8(1)(iii) and (2), pursuant to Article 8(3), of Protocol 2 on European Coal and Steel Community (ECSC) products to that Agreement
Date: 2001-11-22
Institutions: EC–Slovakia Association Council
Subjects: EU Member State, Slovakia, State aid, association agreement (EU), iron and steel product

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DECISION No 6/2001 OF THE EU-SLOVAK REPUBLIC ASSOCIATION COUNCIL

of 22 November 2001

adopting the implementing rules for the application of the provisions on State aid referred to in
Article 64(1)(iii) and (2), pursuant to Article 64(3), of the Europe Agreement establishing an
Association between the European Communities and their Member States, of the one part, and the
Slovak Republic, of the other part, and in Article 8(1)(iii) and (2), pursuant to Article 8(3), of
Protocol 2 on European Coal and Steel Community (ECSC) products to that Agreement

(2002/137/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an Asso-
ciation between the European Communities and their Member
States, of the one part, and the Slovak Republic, of the other
part, and in particular Article 64(3) thereof,

Having regard to Protocol 2 on European Coal and Steel
Community (ECSC) products to the Europe Agreement, and in
particular Article 8(3) thereof,

(5)

(6)

Whereas:

(1)

(2)

(3)

(4)

Article 64(3) of the Europe Agreement lays down that
the Association Council
is, within three years of the
entry into force of the Agreement, to adopt the neces-
sary rules for the implementation of paragraphs 1 and 2
of that Article.

the concept of

It is recalled that, in accordance with Article 64(2) of the
‘public aid’ as
Europe Agreement,
contained in Article 64(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 Slovak
Republic (State aid).

The Slovak Republic will appoint a national institution
or administration to become a monitoring authority
with responsibility for State aid matters.

This monitoring authority will be responsible for the
analysis of existing and future individual aid awards and
aid programmes in the Slovak Republic and will give an
opinion as to their compatibility with Article 64(1)(iii)
and (2) of the Europe Agreement, and Article 8(1)(iii),

(2) and (4) of Protocol 2 on European Coal and Steel
Community (ECSC) products to the Europe Agreement.

The Slovak Republic will, when providing for the neces-
sary rules to ensure effective supervision, ensure in
particular that the monitoring authority receives in due
time all the relevant information from the other Govern-
level.
ment departments at central, regional and local

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 assis-
tance,

HAS DECIDED AS FOLLOWS:

Article 1

The implementing rules for the application of the provisions
on State aid referred to in Article 64(1)(iii) and (2) pursuant to
Article 64(3) of the Europe Agreement establishing an Associa-
tion between the European Communities and their Member
States, of the one part, and the Slovak Republic, of the other
part, and in Article 8(1)(iii) and (2) pursuant to Article 8(3) of
Protocol 2 on European Coal and Steel Community (ECSC)
products to that Agreement, as attached to this Decision, are
hereby adopted.

Article 2

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

Done at Brussels, 22 November 2001.

For the Association Council

The President

L. MICHEL

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IMPLEMENTING RULES

for the application of the provisions on State aid referred to in Article 64(1)(iii) and (2), pursuant
to Article 64(3), of the Europe Agreement establishing an Association between the European
Communities and their Member States, of the one part, and the Slovak Republic, of the other part,
and in Article 8(1)(iii) and (2), pursuant to Article 8(3), of Protocol 2 on European Coal and Steel
Community (ECSC) products to that Agreement

SURVEILLANCE OF STATE AID BY MONITORING AUTHORITIES

Article 1

Surveillance of State aid by monitoring authorities

Subject
to the procedural rules in force in the European
Community (‘the Community’) and the Slovak Republic, the
granting of State aid shall be surveyed and assessed as to its
compatibility with the Europe Agreement by the responsible
monitoring authorities in the Community and the Slovak
Republic,
respectively. The monitoring authority in the
the European
Community shall be
Communities (‘the Commission’), and in the Slovak Republic
the Public Aid Office.

the Commission of

GUIDANCE FOR DEALING WITH CASES

Article 2

Criteria for compatibility

1.
The assessment of compatibility of individual aid awards
and aid programmes with the Europe Agreement, as provided
for in Article 1 of these rules, shall be made on the basis of the
criteria arising from the application of the rules of Article 87 of
the Treaty establishing the European Community, including the
present and future secondary legislation, frameworks, guide-
lines and other relevant administrative acts in force in the
Community, as well as the case-law of the Court of First
Instance and the Court of Justice of the European Communities
and any decision taken by the Association Council pursuant to
Article 4(3).

Insofar as the aid awards or aid programmes are destined for
products covered by Protocol 2 to the Europe Agreement, the
first subparagraph of this paragraph shall apply in full with the
exception that the assessment shall not be made on the basis of
the criteria arising from the application of the rules of Article
87 of the Treaty establishing the European Community but on
the basis of the criteria arising from the application of the rules
on State aid of the Treaty establishing the European Coal and
Steel Community.

The monitoring authority of the Slovak Republic shall be
2.
informed of any acts relating to the adoption, abolition or
modification of
the Community criteria of compatibility
referred to in paragraph 1, in so far as these are not published
but are specifically brought to the attention of all Member
States.

information about

3. Where such changes do not encounter objections from
the Slovak Republic within three months from the date of
receiving the official
they shall
become criteria of compatibility as provided for in paragraph 1
of this Article. Where such changes encounter objections from
the Slovak Republic and having regard to the approximation of
legislation as provided for in the Europe Agreement, consulta-
tions shall take place, in accordance with Articles 7 and 8 of
these rules.

them,

The same principles shall apply in respect of other signifi-

4.
cant changes in Community policy on State aids.

Article 3

De minimis aid

Aid programmes or individual aid awards which do not involve
export aid and which fall below the threshold applicable in the
Community for de minimis aid (1) shall be considered as having
only a negligible effect on competition and trade between the
Parties and shall therefore not be treated under these rules. This
Article does not apply to the industries covered by the Treaty
establishing the European Coal and Steel Community, to ship-
building,
to transport nor to aid towards expenditure in
connection with agriculture or fisheries.

Article 4

Derogations

1.
In accordance with and within the limits of Article
64(4)(a) of the Europe Agreement, the Slovak Republic shall be
regarded as an area identical to those areas of the Community
referred to in Article 87(3)(a) of the Treaty establishing the
European Community.

The monitoring authorities shall

2.
jointly evaluate the
maximum aid intensities and specific regional coverage of areas
in the Slovak Republic eligible for national regional aid. They
shall submit a joint proposal to the Association Committee
which shall establish a decision to this effect.

(1) Currently the Community de minimis aid ceiling, according to
Commission Regulation (EC) No 69/2001 of 12 January 2001 on
the application of Articles 87 and 88 of
the EC Treaty to de
minimis aid (OJ L 10, 13.1.2001, p. 30), is a total of EUR 100 000
per firm over any three-year period.

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The monitoring authorities may, if necessary and at the
3.
request of the Slovak Republic, jointly evaluate problems raised
by the implementation of the Community acquis in the field of
State aids awarded by the Slovak Republic as it completes
transition to a market economy. The evaluation of such prob-
lems shall not relate to the agricultural sector, fisheries, coal
and steel, nor to sensitive sectors (automobiles, man-made
fibres and shipbuilding) for which specific Community arrange-
ments exist. Where appropriate,
the monitoring authorities
shall submit a joint proposal to the Association Council, which
may adopt a decision.

PROCEDURES FOR CONSULTATION AND PROBLEM-SOLVING

Article 5

Examination of certain aid

1. Where the amount of the aid in question amounts to
over EUR 3 million, aid programmes or individual aid awards,
whether or not covered by frameworks and guidelines in the
Community, may be referred by the relevant monitoring
authority to the subcommittee dealing with competition policy
and State aids for examination. The subcommittee may submit
to the Association Committee which may adopt
a report
appropriate decisions or
recommendations concerning the
compatibility of the aid programme or aid award with the
Europe Agreement and these rules.

2.
The principal purpose of such decisions or recommenda-
tions shall be to avoid the resorting to commercial defence
measures as a consequence of the aid in question.

3.
The Association Committee may decide to extend further
the possibility of examination as provided for in this Article.

Article 6

Request for information

Whenever the monitoring authority of a Party becomes aware
of the fact that an aid programme or individual aid award
appears to affect important interests of that Party,
it may
request information about this from the authority responsible.
In any event, both monitoring authorities shall endeavour to
keep each other informed of important developments that may
be of practical

interest for the other.

consultation with the other authority, and consequently it may
request that the other Party's monitoring authority initiate any
appropriate procedures with a view to taking remedial action.
This is without prejudice to any action under the respective
Parties' relevant
legislation and does not hamper the full
freedom of ultimate decision of the authority so addressed,
within the framework of the Europe Agreement.

2.
The monitoring authority so addressed shall give full and
sympathetic consideration to such views and factual material as
may be presented by the requesting authority and in particular
to the alleged harmful effects on the important interests of the
requesting Party.

3. Without prejudice to their rights and obligations, the
monitoring authorities involved in consultations under this
Article shall endeavour to find, within three months, a mutu-
ally acceptable solution in the light of the respective important
interests involved.

Article 8

Problem-solving

1. Where consultations under Article 7 do not lead to a
mutually acceptable solution, an exchange of views shall take
place within the subcommittee dealing with competition policy
and State aids established in the framework of the Europe
Agreement at the request of one Party within three months
following the request.

2. Where this exchange of views does not lead to a mutually
the period
acceptable solution, or after the expiration of
referred to in paragraph 1, the matter may be submitted to the
Association Committee which may make appropriate recom-
mendations for the settlement of these cases.

3.
These procedures shall be without prejudice to any action
under Article 64(6) of the Europe Agreement and Article 8(6)
of Protocol 2 on European Coal and Steel Community (ECSC)
products to the Europe Agreement. Trade instruments should
however only be used as a last resort.

Article 9

Secrecy and confidentiality of information

Article 7

Consultation and comity

1. With respect to Article 64(7) of the Europe Agreement,
neither monitoring authority is required to provide information
to the other authority if disclosure of that information to the
requesting authority is prohibited by the law of the authority
possessing the information.

1. Whenever the Commission or the monitoring authority
of the Slovak Republic considers that the award of State aid on
the territory for which the other authority is responsible
it may request
substantially affects its important

interests,

2.
Each monitoring authority agrees to maintain the confi-
dentiality of any information provided to it in confidence by
the other authority.

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TRANSPARENCY

Article 10

Inventory

the

Under

relevant Community programmes,

1.
the
Commission shall assist the Slovak Republic to draw up and
thereafter update an inventory of
its aid programmes and
individual aid awards, established on the same basis as in the
Community,
in order to ensure and continuously improve
transparency.

Article 11

Mutual information

Both Parties shall ensure transparency in the domain of State
aid by providing for appropriate publications and the exchange
of information on State aid policy on a regular and reciprocal
basis.

MISCELLANEOUS

Article 12

Administrative assistance (languages)

The Commission shall provide the Slovak Republic with
2.
regular information on the documentation it produces with a
similar
the
Community.

aim in relation to the Member States of

The Commission and the monitoring authority of the Slovak
Republic shall provide for practical arrangements for mutual
assistance or any other appropriate solution concerning in
particular the question of translations.