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
Date: 2002-11-01
Institutions: EC–Estonia Association Council
Subjects: Estonia, State aid, aid system, association agreement (EU), control of State aid, cooperation policy, trading operation

1.11.2002

EN

Official Journal of the European Communities

L 299/45

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

SURVEILLANCE OF STATE AID BY MONITORING AUTHORITIES

referred to in paragraph 1, in so far as these are not published
but are specifically brought to the attention of all Member
States.

Article 1

Surveillance of State aid by monitoring authorities

Subject
to the procedural rules in force in the European
Community (‘the Community’) and the Republic of Estonia, 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 Republic of
Estonia, respectively. The monitoring authority in the Commu-
nity shall be the Commission of the European Communities
(‘the Commission’), and in the Republic of Estonia the Ministry
of Finance.

GUIDANCE FOR DEALING WITH CASES

Article 2

Criteria for compatibility

1.
The assessment of compatibility of individual aid awards
and 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,
guidelines 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).

the first sentence of

In so far as the aid awards or aid programmes are destined for
products covered by the Treaty establishing the European Coal
this paragraph
and Steel Community,
applies fully 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.

information about

3. Where such changes do not encounter objections from
the Republic of Estonia 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 Republic of Estonia and having regard to the approxima-
tion of legislation as provided for in the Europe Agreement,
consultations 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 aid towards expenditure in
to transport nor
connection with agriculture or fisheries.

Article 4

Derogations

1.
In accordance with and within the limits of Article
63(4)(a) of the Europe Agreement, the Republic of Estonia shall
be regarded as an area identical to those areas of the Commu-
nity referred to in Article 87(3)(a) of the Treaty establishing the
European Community.

The monitoring authorities

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

shall

2.
The monitoring authority of the Republic of Estonia shall
be informed of any acts relating to the adoption, abolition or
the Community criteria of compatibility
modification of

(1) Currently the Community de minimis threshold according to the
Commission Notice on de minimis aid (OJ C 68, 6.3.1996, p. 9) is
EUR 100 000 of total aid per firm over a three-year period.

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Official Journal of the European Communities

1.11.2002

The monitoring authorities may, if necessary and at the
3.
request of the Republic of Estonia,
jointly evaluate problems
raised by the implementation of the Community acquis in the
field of State aids awarded by the Republic of Estonia as it
completes transition to a market economy. The evaluation of
such problems shall not relate to the agricultural sector, fish-
eries, coal and steel, or to sensitive sectors (automobiles, man-
made fibres or shipbuilding) for which specific Community
arrangements exist. Where appropriate, the monitoring authori-
ties 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.

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

The Association Committee may decide to extend further

3.
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
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.

interests of

that Party,

important

Article 7

Consultation and comity

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

interests,

the full
Parties' relevant
freedom of ultimate decision of the authority so addressed,
within the framework of the Europe Agreement.

legislation and does not hamper

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 any of their rights and obligations,
the monitoring authorities involved in consultations under this
Article shall endeavour to find, within three months, a mutually
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
acceptable solution, or after
the period
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.

the expiration of

3.
These procedures shall be without prejudice to any action
under Article 63(6) of the Europe Agreement. Trade instru-
ments should however only be used as a last resort.

Article 9

Secrecy and confidentiality of information

1. With respect to Article 63(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.

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

TRANSPARENCY

Article 10

Inventory

the

Under

relevant Community programmes,

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

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The Commission shall provide the Republic of Estonia
2.
with regular information on the documentation it produces
with a similar aim in relation to the Member States of the
Community.

MISCELLANEOUS

Article 12

Article 11

Mutual information

Administrative assistance (languages)

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.

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