Proposal for a COUNCIL REGULATION amending Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 of the Treaty establishing the European Community to certain categories of horizontal State aid and Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road
Date: 2012-12-05
Institutions: European Commission
Subjects: State aid, control of State aid, cultural heritage, fishing industry, forestry holding, innovation, natural disaster, peripheral region, resources of the sea, small and medium-sized enterprises, sport, transmission network, transport market

EUROPEAN 
COMMISSION 

Brussels, 5.12.2012  
COM(2012) 730 final 

2012/0344 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 994/98 of 7 May 1998 on the application of 
Articles 92 and 93 of the Treaty establishing the European Community to certain 
categories of horizontal State aid and Regulation (EC) No 1370/2007 of the European 
Parliament and of the Council of 23 October 2007 on public passenger transport services 
by rail and by road  

(Text with EEA relevance) 

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EXPLANATORY MEMORANDUM 

1. 

OBJECTIVE AND CONTEXT OF THE PROPOSAL 

In the interest of enforcement and to simplify administration without weakening Commission 
monitoring, Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 
92  and  93  of  the  Treaty  establishing  the  European  Community  to  certain  categories  of 
horizontal  State  aid  (hereinafter  the  ‘Enabling  Regulation’)1  allows  the  Commission  to 
declare, by means of regulations, that certain categories of State aid are compatible with the 
common market and are exempted from the notification requirement provided for in Article 
108(3)  of  the  TFEU.  The  categories  concerned  include  de  minimis  aid2,  aid  to  small  and 
medium-sized  enterprises,  aid  for  research  and  development,  environmental  protection  or 
employment and training, and aid that complies with the map approved by the Commission 
for each Member State for the grant of regional aid. 

The Commission indicated in its Communication on State aid Modernisation of 8 May 20123 
that  State  aid  enforcement  should  focus  on  cases  with  the  biggest  impact  on  the  internal 
market. This implies on the one hand stronger scrutiny of large and potentially distortive aid, 
and  on  the  other  simplified  analysis  of  cases  with  only  limited  effect  on  trade  and  limited 
potential to seriously distort competition. The latter can be achieved by reviewing the regime 
of exemptions, in particular the scope of Council Regulation (EC) No 994/98, which would 
enable  the  Commission  to  block-exempt  further  categories  of  aid  from  the  notification 
requirement, in addition to the categories already included in the current Enabling Regulation. 

The proposal to include certain new categories in the Enabling Regulation entails neither the 
immediate block exemption of all these categories, nor does it mean that all measures within a 
category  would  be  block-exempted  in  their  entirety.  Rather,  it  enables  the  Commission  to 
adopt  block  exemptions  gradually,  when  experience  acquired  is  sufficient  to  allow  the 
Commission to define clear compatibility criteria for certain types of aid measures, ensuring 
that  the  effect  on  competition  and  trade  between  Member  States  is  limited.  The  same 
approach has been followed under the current Enabling Regulation: the first block exemptions 
were  adopted  in  2001  (training  aid,  aid  to  SMEs),  while  for  other  types  of  aid  the  first 
exemptions were adopted only at a later stage, once sufficient experience had been acquired 
(employment aid in 2002, regional aid in 2006, and R&D and environmental aid in 2008 with 
the  adoption  of  GBER4).  More  frequent  revisions  of  the  Enabling  Regulation  may  in  the 
future  be  needed, in  particular  to  have  due  regard  to  the  investments  required  by  and 
compatible  with  the  development  of  the  internal  market, in  the  light  of  the  experience 
gained. Following a decision on the next Multiannual Financial Framework, the Commission 
will also assess without delay the possibilities to simplify the State aid procedures for projects 
co-financed under the EU structural policies. 

1 
2 
3 
4 

OJ L 142, 14.5.1998, p. 1. 
Exemption is possible in this case under Article 2 of Regulation (EC) No 994/98. 
COM(2012) 209 final. 
Commission  Regulation  (EC)  No  800/2008  of  6  August  2008  declaring  certain  categories  of  aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block 
Exemption Regulation), OJ L 214, 9.8.2008, p. 3. 

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New categories proposed for inclusion in the Enabling Regulation 

• 

State aid in the culture and heritage conservation sectors 

Council  Regulation  No  994/98  authorises  the  Commission  to  adopt  an  exemption  regulation 
for all categories of State aid to SMEs. Therefore, on this basis the Commission could block-
exempt  State  aid  to  SMEs  in  the  culture  and  heritage  conservation  sectors  as  defined  in 
Article 167 TFEU under the current Enabling Regulation. This would be of only limited use, 
though, as the recipients of State aid, in particular in the cinema and audio-visual sectors, are 
often large companies. These cases generate a substantial workload for the Commission and 
Member States, even though they are often routine cases involving limited aid amounts. 

Once this category of aid is included in the Enabling Regulation, the Commission will be able 
to  adopt  block  exemptions,  for  example  for  measures  that  meet  the  criteria  of  the  revised 
Cinema  Communication  or  for  measures  for  heritage  conservation  or  culture  promotion, 
which  usually  have  only  limited  effect  on  trade  (e.g.  numerous  individual  notifications  of 
restoration of classified buildings or monuments). 

Council  Regulation  No  994/98  should  be  amended  accordingly  to  cover  these  categories  of 
State aid. 

• 

State aid in relation to natural disasters 

Regarding  State  aid  to  compensate  for  the  damage  caused  by  natural  disasters,  Council 
Regulation  No  994/98  would,  as  explained  above,  authorise  the  Commission  to  exempt  aid 
granted  to  SMEs,  but  does  not  allow  aid  to  large  companies.  Block-exempting  such  natural 
disaster  aid  would  allow  Member  States  to  react  rapidly  when  a  natural  disaster  occurs  in 
order to compensate for the damage caused.  

The  Commission  has  meanwhile  acquired  sufficient  experience  with  this  type  of  aid  and  is 
able to define clear ex ante conditions of compatibility. If the aid is clearly defined, limited to 
material damage directly caused by the disaster and in an amount verified by an independent 
body, exemption from the notification obligation  would be justified. Council  Regulation No 
994/98 should be amended accordingly to cover these categories of State aid, even for large 
companies. 

• 

State aid in relation to certain adverse weather conditions in fisheries 

Member States are also required to notify to the Commission State aid measures to make good 
the damage caused by certain adverse weather conditions in fisheries. The amounts granted in 
this  area  are  usually 
limited  and  clear  compatibility  conditions  can  be  defined. 
Regulation (EC)  No  994/98  authorises  the  Commission  to  exempt  such  aid  from  the 
notification requirement only if it is granted to SMEs. However, large companies may also be 
affected by adverse weather conditions in fisheries.  

The Commission has meanwhile acquired sufficient experience with this type of aid and clear 
compatibility conditions can be defined on this basis. Council Regulation No 994/98 should be 
amended accordingly to cover this category of State aid. 

• 

State aid for innovation 

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Council  Regulation  No  994/98  explicitly  covers  research  and  development,  but  not 
innovation.  Innovation  has  since  become  an  EU  objective  as  part  of  the  Innovation  Union 
initiative. For example aid towards process and organisational innovation in services and aid 
for innovation clusters may not be distortive as long as targeted conditions are respected. Aid 
for  product  and  technological  innovation,  including  support  for  demonstration  projects  and 
prototypes,  is  instead  already  included  in  Article  30  of  the  GBER.  Council  Regulation  No 
994/98  should  be  amended  accordingly  so  that  aid  for  innovation  could  be  exempted  in  the 
future. 

• 

State aid for forestry and promotion of non-Annex-I products in the food sector 

According to Article 42 TFEU the rules on competition apply to the production of and trade in 
agricultural products only to the extent laid down by the European Parliament and the Council. 
However,  certain  measures  which  are  not  covered  by  Article  42  TFEU  and  to  which  the 
general competition rules apply are contained in the rural development programmes or favour 
the  promotion  and  advertising  of  non-Annex  I  products  in  the  food  sector  and  have  been 
subject to specific compatibility conditions under the State aid rules. This is in particular true 
of forestry and aid for the promotion of non-Annex-I products in the food sector. So far, this 
type  of  aid  could  only  be  block-exempted  if  it  was  limited  to  SMEs.  In  view  of  the  broad 
experience  with  this  type  of  measures,  allowing  the  formulation  of  clear  compatibility 
conditions,  Council  Regulation  No  994/98  should  be  amended  accordingly  so  that  these 
categories of State aid could be exempted in the future.  

• 

State aid for the conservation of marine biological resources 

According  to  Article  7  of  Council  Regulation  of  27  July  2006  (EC)  No  1198/2006  on  the 
European Fisheries Fund5, Articles 107, 108 and 109 of the Treaty shall apply to aid granted 
by  the  Member  States  to  enterprises  in  the  fisheries  sector,  except  for  payments  made  by 
Member  States  pursuant  to,  and  in  conformity  with,  Regulation  (EC)  No  1198/2006. 
Additional  State  aid  for  the  conservation  of  marine  biological  resources  usually  has  limited 
effects  on  intra-Union  trade,  contributes  to  the  EU  objectives  in  the  field  of  maritime  and 
fisheries  policy  and  does  not  create  serious  distortions  of  competition.  Furthermore,  the 
amounts  granted  are  usually  limited.  Council  Regulation  No  994/98  should  be  amended 
accordingly so that these categories of State aid could be exempted in the future. 

• 

State aid for amateur sports  

While a considerable number of cases relating to amateur sports does not even constitute aid, 
others usually have limited effects on intra-Union trade and do not create serious distortions 
of  competition;  furthermore,  the  amounts  granted  are  typically  limited.  Council  Regulation 
No  994/98  should  be  amended  accordingly  so  that  these  categories  of  State  aid  could  be 
exempted in the future. 

• 

Social aid to residents of remote regions for transport 

In  the  area  of  transport,  specific  rules  already  exist,  in  particular  Council  Regulation  No 
1370/2007 on road and rail passenger transport services of general economic interest. 

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OJ L 223, 15.8.2006, p. 1. 

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However, there are no specific rules regarding aid for air and maritime transport. Within these 
sectors, the Commission has acquired sufficient experience to formulate general compatibility 
criteria  for  social  aid  to  residents  of  remote  regions  for  transport  (mainly  outermost  regions 
and  islands/peninsulas  assimilated  as  islands  in  the  continental  EU).  This  aid  tends  to  be 
relatively minor and does not create significant distortions of competition. Council Regulation 
No 994/98 should be amended accordingly so that this category of State aid could in future be 
exempted. 

• 

State aid for the transport sector pursuant to Article 93 TFEU 

Article  9  of  Regulation  No  1370/2007  currently  exempts  from  the  prior  notification 
requirement laid down in Article 108(3) TFEU public service compensation for the operation 
of  public  passenger  transport  services  or  for  complying  with  tariff  obligations  established 
through general rules paid in accordance with that Regulation. 

Under the division of competences between the Council and Commission established by the 
Lisbon Treaty, set out in Articles 108(4) and 109 TFEU, it is for the Council to determine the 
categories of aid exempt from State aid notification, but for the Commission to establish the 
detailed  rules  relating to  such  exemption.  In  order  to  bring  the  public  service  compensation 
exemption  into  line  with  these  provisions,  this  category  should  be  brought  under  the  scope 
of Council  Regulation  No  994/98. Article  9  of  Regulation  No  1370/2007  should  cease  to 
apply  six  months  after  the  entry  into  force  of  a  regulation  adopted  by  the  Commission 
concerning  this  category  of  State  aid.  The  Commission  currently  expects  such  a  block 
exemption  would  however  reproduce  the  substance  of  the  current  exemption,  except  to  the 
extent that Regulation 1370/2007 is amended by planned legislative proposals relating to the 
rail sector. 

• 

State aid for certain broadband infrastructure 

In  recent  years,  the  Commission  has  acquired  vast  experience  with  aid  for  the  broadband 
sector and has devised guidelines. On that basis the Commission is able to formulate precise 
compatibility  criteria  allowing  block  exemption  with  regard  to  aid  for  certain  types  of 
broadband  infrastructure  under  specific  conditions.  This  applies  to  aid  covering  basic 
broadband  in  regions  where  there  is  no  broadband  infrastructure  and  where  no  such 
infrastructure is likely to be developed in the near future (‘white’ areas), and small individual 
aid  measures  covering  very  high-speed  next-generation  access  (‘NGA’)  networks  in  ‘white 
NGA’ areas.  

Moreover,  aid  for  broadband-related  civil  engineering  works  and  passive  broadband 
infrastructure  could  be  block  exempted.  Support  for  civil  engineering  works  in  many  cases 
constitutes  aid  if  it  concerns  the  installation  of  dedicated  telecommunication  infrastructure 
(ducts). Passive broadband infrastructure covers the installation of both ducts and dark fibres. 
It is pro-competitive since it can be used by different operators (fixed, wireless, mobile), has 
no predetermined access or technology, and is typically owned by public authorities who have 
no interest to discriminate between operators. A block exemption for civil engineering works 
and  passive  broadband  infrastructure  could  speed  up  investments  since  (small)  local 
authorities often prefer to support this, rather than adopting broadband schemes and having to 
comply  with  their  more  extensive  State  aid  conditions.  The  Commission  has  acquired 
sufficient case experience in the area of aid to passive infrastructure. A block exemption may 
trigger increasing use in rural areas where existing passive infrastructure is not adequate. 

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Council  Regulation  No  994/98  should  be  amended  accordingly  so  that  these  categories  of 
State aid could in future be exempted. 

Specifying block-exempted aid categories 

Article 1(2)(c) specifies that for each category of block-exempted aid the thresholds should be 
‘expressed either in terms of aid intensities in relation to a set of eligible costs or in terms of 
maximum aid amounts’. 

Given  the  development  of  new  forms  of  State  support,  such  as  financial  engineering 
instruments  or  different  forms  of  risk  capital,  the  Commission  considers  that  the  way  these 
thresholds  are  set  should  be  updated  to  include  the  possibility  of  block  exemption  for  these 
new  forms  of  State  support  too.  It  should  therefore  be  possible  to  define  the  thresholds  not 
only in terms of aid intensities or maximum aid amounts, but also in terms of maximum level 
of State support, whether it qualifies as State aid in the meaning of Article 107(1) TFEU or 
not. Council Regulation No 994/98 should be amended accordingly. 

Provisions concerning transparency 

Article  3(2)  of  Regulation  No  994/98  provides  that,  ‘On  implementation  of  aid  systems  or 
individual  aids  granted  outside  any  system,  which  have  been  exempted  pursuant  to  such 
regulations, Member States shall forward to the Commission, with a view to publication in the 
Official Journal of the European Communities, summaries of the information regarding such 
systems of aid or such individual aids as are not covered by exempted aid systems.’ 

In 1998, when Regulation No 994/98 was adopted, publishing these summaries in the Official 
Journal  was  the  most  appropriate  means.  However,  as  the  number  of  official  languages  has 
increased  and  the  communication  media  have  evolved,  publishing  the  summaries  on  the 
Commission’s website would increase transparency, shorten publication deadlines and reduce 
the  administrative  workload,  since  it  has  become  equally  easy  for  interested  parties, 
particularly businesses, to consult the Commission’s website or the Official Journal. 

The  obligation  to  publish  the  above  summaries  in  the  Official  Journal  should  therefore  be 
replaced  by  the  obligation  to  publish  on  the  Commission’s  website.  Council  Regulation  No 
994/98 should be amended accordingly. 

Provisions relating to the procedure for Commission adoption of exemption regulations 

Pursuant  to  Article  8  of  Regulation  No  994/98,  the  Commission  must  consult  the  Advisory 
Committee  on  State  Aid  before  publishing  any  draft  block  exemption  regulation.  The 
Commission  believes  that  to  enable  interested  parties  to  submit  their  comments  and  thus 
ensure greater transparency, the draft regulations should be published at the same time as the 
Advisory Committee is consulted. 

Given  the  way  new  electronic  communications  media  have  developed,  the  Commission 
believes  that  the  fastest  and  most  effective  way  of  publishing  draft  regulations  is  on  its 
website rather than in the Official Journal. This gives interested parties a better opportunity to 
comment and reduces administrative burden and delay. 

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The  above-mentioned  provisions  in  Article  8  of  Council  Regulation  No  994/98  should  be 
amended accordingly. 

2. 

CONSISTENCY  WITH  THE  UNION’S  OTHER  POLICIES  AND 
OBJECTIVES 

This proposal is a key element in State Aid Modernisation (SAM), an initiative launched by 
Commission  Communication  on  8  May  20126,  setting  out  an  ambitious  State  aid  reform 
programme.  It  should  contribute  to  the  overall  objectives  of  the  Union,  in  particular  the 
objective of focusing State aid enforcement on cases having the biggest impact on the internal 
market  and  to  the  EU  2020  strategy  to  foster  growth  in  a  strengthened,  dynamic  and 
competitive internal market. 

To achieve the objectives of this strategy, the Commission proposes to increase the number of 
aid categories that may be exempted from the notification requirement and thus cut red tape 
and reduce the number of aid measures that have to be notified. The categories concerned and 
the  envisaged  block  exemptions  would  lay  down  compatibility  conditions  which  target  the 
types of aid that genuinely contribute to achieving the EU 2020 objectives. 

3. 

• 

LEGAL ASPECTS 

Legal basis 

regulations, 

The legal basis of this proposal is Article 109 TFEU, which allows the Council to make any 
appropriate 
in  which 
Article 108(3) TFEU shall apply, and the categories of aid exempted from that procedure. The 
Council  must  decide  by  a  qualified  majority  on  a  proposal  from  the  Commission  and  after 
consulting the European Parliament. 

to  determine 

in  particular 

conditions 

the 

• 

Subsidiarity and proportionality 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  subsidiarity  principle 
does not therefore apply. 

The  initiative  does  not  go  beyond  what  is  necessary  to  achieve  its  objective,  and  therefore 
complies with the proportionality principle. 

• 

Choice of instruments 

Proposed instrument: regulation. 

A  regulation  is  the  only  appropriate  legal  instrument  for  amending  Regulation  (EC)  No 
994/98. 

4. 

BUDGETARY IMPLICATION 

The proposal has no negative implications for the Union budget.  

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COM(2012) 209 final. 

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2012/0344 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 994/98 of 7 May 1998 on the application of 
Articles 92 and 93 of the Treaty establishing the European Community to certain 
categories of horizontal State aid and Regulation (EC) No 1370/2007 of the European 
Parliament and of the Council of 23 October 2007 on public passenger transport services 
by rail and by road  

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 109 thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the opinion of the European Parliament,7 

Having regard to the opinion of the European Economic and Social Committee,8 

Having regard to the opinion of the Committee of the Regions,9  

Whereas: 

(1) 

(2) 

Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 
and  93  of  the  Treaty  establishing  the  European  Community  to  certain  categories  of 
horizontal  State  aid,10  empowers  the  Commission  to  declare  by  means  of  regulations 
that certain specified categories of aid are compatible with the internal market and are 
exempted from the notification requirement of Article 108(3) of the Treaty. 

Regulation  (EC)  No  994/98  empowers  the  Commission  to  declare,  in  accordance  with 
Article  107  of  the  Treaty,  that  under  certain  conditions  aid  to  small  and  medium-sized 
enterprises  (‘SMEs’),  aid  in  favour  of  research  and  development,  aid  in  favour  of 
environmental protection, employment and training aid, and aid that complies with the map 
approved  by  the  Commission  for  each  Member  State  for  the  grant  of  regional  aid  is 

7 
8 
9 
10 

OJ C […], […], p. 
OJ C […], […], p. 
OJ C […], […], p. 
OJ L 142, 14.5.1998, p.1 

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compatible with the internal market and not subject to the notification requirement of Article 
108(3) of the Treaty.  

(3) 

(4) 

Regulation (EC) No 994/98 authorises the Commission to exempt aid for research and 
development,  but  not  for  innovation.  Innovation  has  since  become  a  Union  policy 
priority  in  the  context  of  ‘Innovation  Union’,  one  of  the  Europe  2020  flagship 
initiatives. Moreover, many aid measures for innovation are relatively small and create 
no significant distortions of competition.  

In the culture and heritage conservation sector, Member States are currently required 
to notify to the Commission all draft State aid measures. Regulation (EC) No 994/98 
authorises  the  Commission  to  exempt  aid  granted  to  SMEs,  but  such  an  exemption 
would in the cultural sector be of limited use as recipients are often large companies. 
However,  small  culture  and  heritage  conservation  projects,  even  if  carried  out  by 
larger  companies,  do  not  typically  give  rise  to  any  significant  distortion,  and  recent 
cases have shown that such aid has limited effects on trade.  

(5)  Member  States  are  also  required  to  notify  to  the  Commission  State  aid  measures  to 
make good the damage caused by natural disasters. The amounts granted in this area 
are usually limited and clear compatibility conditions can be defined. Regulation (EC) 
No  994/98  authorises  the  Commission  to  exempt  such  aid  from  the  notification 
requirement  only  if  it  is  granted  to  SMEs.  However,  large  companies  may  also  be 
affected by natural disasters. In the Commission’s experience, such aid does not give 
rise to any significant  distortion  and  clear compatibility conditions can be defined on 
the basis of the experience acquired.  

(6)  Member  States  are  also  required  to  notify  to  the  Commission  State  aid  measures  to 
make good the damage caused by certain adverse weather conditions in fisheries. The 
amounts granted in this area are usually limited and clear compatibility conditions can 
be defined. Regulation (EC) No 994/98 authorises the Commission to exempt such aid 
from  the  notification  requirement  only  if  it  is  granted  to  SMEs.  However,  large 
companies  may  also  be  affected  by  adverse  weather  conditions  in  fisheries.  In  the 
Commission’s experience, such aid does not give rise to any significant distortion and 
clear compatibility conditions can be defined on the basis of the experience acquired.  

(7) 

In accordance with Article 42 of the Treaty, State aid rules do not apply under certain 
conditions to certain aid measures in favour of agriculture products listed in Annex I 
of  the  Treaty.  However,  Article  42  does  not  apply  to  forestry  and  non-Annex  I 
products. Therefore, at present, by virtue of Regulation (EC) No 994/98, aid to forestry 
and to non-Annex I products in the food sector can only be exempted if it is limited to 
SMEs.  The  Commission  should  be  able  to  exempt  certain  types  of  aid  in  favour  of 
forestry  contained  in  the  rural  development  programmes  and  also  those  in  favour  of 
promotion  and  advertising  of  non-Annex  I  products  in  the  food  sector  where, 
according  to  the  Commission's  experience,  the  distortions  of  competition  are  limited 
and clear compatibility conditions can be defined.  

(8) 

According to Article 7 of Council Regulation of 27 July 2006 (EC) No 1198/2006 on 
the European Fisheries Fund,11 Articles 107, 108 and 109 of the Treaty shall apply to 

11 

OJ L 223, 15.8.2006, p. 1. 

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(9) 

(10) 

(11) 

aid  granted  by  the  Member  States  to  enterprises  in  the  fisheries  sector,  except  for 
payments  made  by  Member  States  pursuant  to,  and  in  conformity  with,  Regulation 
(EC)  No  1198/2006.  Additional  State  aid  for  the  conservation  of  marine  biological 
resources  usually  has  limited  effects  on  intra-Union  trade,  contributes  to  the  EU 
objectives  in  the  field  of  maritime  and  fisheries  policy  and  does  not  create  serious 
distortions  of  competition.  The  amounts  granted  are  usually  limited  and  clear 
compatibility conditions can be defined. 

In the amateur sports sector, public support measures, to the extent that they constitute 
State aid, usually have limited effects on intra-Union trade and do not create serious 
distortions  of  competition.  The  amounts  granted  are  typically  also  limited.  Clear 
compatibility conditions can be defined on the basis of the experience acquired so as to 
ensure that aid to amateur sports does not give rise to any significant distortion. 

In  relation  to  aid  concerning  air  and  maritime  transport,  in  the  Commission’s 
experience, aid having a social character to residents of remote regions for transport, 
provided that it is granted without discrimination related to the identity of the carrier, 
does not give rise to any significant distortion and clear compatibility conditions can be 
defined.  

In  relation  to  aid  for  transport  by  rail,  road  and  inland  waterways,  Article  93  of  the 
Treaty  states  that  aid  meeting  the  needs  of  coordination  of  transport  or  representing 
reimbursement  for  the  discharge  of  certain  obligations  inherent  in  the  concept  of  a 
public service shall be compatible with the Treaties. Article 9 of Regulation (EC) No 
1370/2007  of  the  European  Parliament  and  of  the  Council  of  23 October 2007  on 
public  passenger  transport  services  by  rail  and  by  road12  currently  exempts  from  the 
prior notification requirement laid down in Article 108(3) of the Treaty public service 
compensations  for  the  operation  of  public  passenger  transport  services  or  for 
complying with tariff obligations that are established through general rules and paid in 
accordance with Regulation (EC) No 1370/2007. In order to harmonize the approach 
to  block  exemption  regulations  in  the  field  of  State  aid,  and  in  accordance  with  the 
procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination 
of transport or reimbursement for the discharge of certain obligations inherent in the 
concept of a public service as referred to in Article 93 of the Treaty should be brought 
under  the  scope  of  Regulation  (EC)  No  994/98.  Article  9  of  Regulation  (EC)  No 
1370/2007 should be therefore be deleted with effect from six months after the entry 
into force of a regulation adopted by the Commission concerning this category of State 
aid. 

(12) 

In  the  field  of  aid  to  broadband,  the  Commission  has  in  recent  years  acquired  vast 
experience  and  has  devised  guidelines13  In  the  Commission’s  experience,  aid  for 
certain types of broadband infrastructure does not give rise to any significant distortion 
and  could  benefit  from  a  group  exemption,  provided  that  certain  compatibility 
conditions  are  met.  This  is  true  of  aid  covering  the  provision  of  basic  broadband  in 
regions  where  there  is  no  broadband  infrastructure  and  where  none  is  likely  to  be 
developed  in  the  near  future  ("white"  areas)  as  well  as  aid  for  small  individual  aid 
measures covering very high-speed next-generation access ("NGA") networks in areas 

12 
13 

OJ L 315, 3.12.2007, p.1. 
Community  Guidelines  for  the  application  of  State  aid  rules  in  relation  to  rapid  deployment  of 
broadband networks, OJ C 235, 30.9.2009, p. 7.  

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where there is no NGA infrastructure and where no such infrastructure is likely to be 
developed  in  the  near  future.  It  is  also  true  of  aid  to  broadband-related  civil 
engineering  works  and  passive  broadband  infrastructure,  where  the  Commission  has 
acquired substantial case experience and clear compatibility conditions can be defined. 

(13)  Therefore,  the  scope  of  Regulation  (EC)  No  994/98  should  be  extended  to  include 

such categories of aid.  

(14)  Regulation (EC) No 994/98 requires the thresholds for each category of aid in respect 
of which the Commission adopts a block exemption regulation to be expressed either 
in terms of aid intensities in relation to a set of eligible costs or in terms of maximum 
aid  amounts.  This  condition  makes  it  difficult  to  block-exempt  certain  types  of 
measures involving State support which, because of the specific way in which they are 
designed,  cannot  be  expressed  in  terms  of  aid  intensities  or  maximum  amounts,  e.g. 
financial engineering instruments or certain forms of measures aimed to promote risk 
capital  investments.  This  is  in  particular  due  to  the  fact  that  such  complex  measures 
may  involve  aid  at  different  levels  (direct  beneficiaries,  intermediate  beneficiaries, 
indirect  beneficiaries).  Given  the  increasing  importance  of  such  measures  and  their 
contribution to Union objectives, there should be more flexibility to make it possible 
to  exempt  such  measures.  It  should  therefore  be  possible  to  define  the  thresholds  in 
terms of the maximum level of State support, whether it qualifies as State aid or not. 

(15)  Regulation  (EC)  No  994/98  requires  Member  States  to  provide  summaries  of 
information concerning aid implemented by them which is covered by an exemption 
regulation. The publication of those summaries is necessary to ensure the transparency 
of  the  measures  adopted  by  the  Member  States.  Their  publication  in  the  Official 
Journal  of  the  European  Union  was  the  most  effective  means  for  ensuring 
transparency at the time Regulation (EC) No 994/98 was adopted. However, with the 
growth  of  electronic  communication  media,  publication  of  the  summaries  on  the 
Commission  website  is  an  equally  fast  and  more  effective  method,  with  added 
transparency for the benefit of interested parties. Therefore, instead of being published 
in  the  Official  Journal,  those  summaries  should  be  published  on  the  Commissions 
website. 

(16) 

Similarly,  draft  regulations  and  other  documents  to  be  examined  by  the  Advisory 
Committee  on  State  Aid  in  accordance  with  Regulation  (EC)  No  994/98  should  be 
published on the Commissions website, rather than in the Official Journal, to ensure 
greater  transparency  and  to  reduce  the  administrative  burden  and  the  delay  in 
publication. 

(17)  The  consultation  procedure  established  in  Article  8  of  Regulation  (EC)  No  994/98 
provides that the Advisory Committee on State Aid be consulted before publication of 
a draft regulation. However, in the interest of greater transparency, the draft regulation 
should be published on the internet at the same time as the Commission consults the 
Advisory Committee for the first time.  

(18)  Regulation (EC) No 994/98 should therefore be amended accordingly, 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 994/98 is amended as follows: 

(1)  Article l is amended as follows: 

(a) 

in paragraph 1, point (a) is replaced by the following:  

"(a) aid in favour of: 

(i) 

small and medium-sized enterprises; 

(ii) 

research, development and innovation; 

(iii)  environmental protection; 

(iv)  employment and training; 

(v) 

culture and heritage conservation; 

(vi)  making good the damage caused by natural disasters; 

(vii)  making  good  the  damage  caused  by  certain  adverse  weather 

conditions in fisheries; 

(viii)  forestry and promotion of non-Annex I products in the food sector; 

(ix)  conservation of marine biological resources; 

(x) 

amateur sports; 

(xi) 

residents of remote regions for transport, when this aid has a social 
character  and  is  granted  without  discrimination  related  to  the 
identity of the carrier;  

(xii)  coordination  of  transport  or  reimbursement  for  the  discharge  of 
certain  obligations  inherent  in  the  concept  of  a  public  service 
pursuant to Article 93 of the Treaty; 

(xiii)  basic  broadband  infrastructure  or  small  individual  infrastructure 
measures covering next-generation access networks in areas where 
there is either no such infrastructure or where no such infrastructure 
is likely to be developed in the near future; and broadband-related 
civil engineering works and passive broadband infrastructure." 

(b)  paragraph 2 point (c) is replaced by the following: 

"(c) thresholds expressed in terms of aid intensities in relation to a set of 
eligible costs or in terms of maximum aid amounts or maximum level of 
State support;" 

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(2)  Article 3(2) is replaced by the following: 

"On implementation of aid systems or individual aids granted outside any 
system, which have been exempted pursuant to such regulations, Member 
States shall forward to the Commission, with a view to publication on the 
Commission's  website,  summaries  of  the  information  regarding  such 
systems of aid or such individual aids as are not covered by exempted aid 
systems." 

(3)  Article 8 is amended as follows: 

(a) 

in paragraph 1, point(a) is replaced by the following: 

"(a)  at  the  same  time  as  publishing  any  draft  Regulation  in  accordance 
with Article 6;" 

(b) 

in paragraph 2, the second sentence, is replaced by the following: 

"The  drafts  and  documents  to  be  examined  shall  be  annexed  to  the 
notification and may be published on the Commission website."  

Article 2 

Regulation (EC) No 1370/2007 is amended as follows: 

Article 9 shall be deleted with effect from six months after the entry into force of a 
Commission regulation concerning the category of State aid referred to in Article 1 
(a) xii of Council Regulation (EC) No 994/98. 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 3 

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

Done at Brussels,  

For the Council 
The President 

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