Article 1072 b of the treaty on the functioning of the european union tfeu stipulates that aid to make good the damage caused by natural disasters shall be compatible with the internal market. Although a detailed analysis of the impact of eu public policy on the applicability of article v2 b of the new york convention goes beyond the scope of this article, some considerations on the peculiarities of the case at hand will demonstrate that the situation where the state aid measure has been declared incompatible with article 107 tfeu. Article 267 1 sentence 1 a and b tfeu and the validity and interpretation of acts of the institutions, bodies, offices or agencies of the union. Eu state aid and tax law 2 december 2014 economic transactions rather than to a narrower category of undertakings, they should not constitute state aid since they do not grant a selective advantage within the meaning of article 1071 tfeu. Article 106 2 tfeu is traditionally seen as a derogation to the treaty provisions and has an awkward role in the treaty chapter on competition. The first covid19related approval of state aid under article 1072 b tfeu, as an exceptional occurrence, is a compensation scheme for event cancellations in denmark. Article 1072 b tfeuarticle 1072 b tfeu enables member states, subject to the european commissions approval, to compensate companies or specific sectors in the form of schemes for the damage suffered in exceptional circumstances, such as those caused by the covid19 outbreak. Along with the framework measures, member states can also introduce other state aid measures, which would fall to be assessed either under article 107 2 b or article 1073 b or c tfeu. Jun 17, 2015 intraeu arbitral awards visavis article 107 tfeu.
Description of the exceptional occurrence and the official reaction of your authorities. Article 107 3 b tfeu new temporary framework in force until december 31, 2020, enabling. The overall investigation of possible derogations from state aid rules in eu law and practice demonstrates that security of energy supply arguments may be covered by the provisions of either article 106 2 or article 1073 tfeu, or even by both simultaneously. The following shall be prohibited as incompatible with the internal market. Declaration on article 1684c of the treaty on the functioning of the. State aid law as a limit to compliance 61 journal of international dispute settlement 118, 2015 17 pages posted. A similar initiative was taken by the european commission in the past during the. Article 101 tfeu is one of the three pillars of eu competition law. Ii abstract this thesis investigates competition law, state aid law and freemovement law in their interaction with article 11 tfeus obligation to integrate environmental protection requirements into all activities and. The first covid19related approval of state aid under article 107 2 b tfeu, as an exceptional occurrence, is a compensation scheme for event cancellations in denmark. The consequences on the regime of circulation of awards are scrutinized. Article 102 of the treaty on the functioning of the european union formerly article 82 of the treaty establishing the european community is aimed at preventing undertakings who hold a dominant position in a market from abusing that position. Deloitte legal newsflash eu competition and eu regulatory.
Critically discuss how eu law as applied under article. Mar 19, 2020 article 107 2 b tfeu article 107 2 b tfeu enables member states, subject to the european commissions approval, to compensate companies or specific sectors in the form of schemes for the damage suffered in exceptional circumstances, such as those caused by the covid19 outbreak. Not all measures constituting state aid are prohibited. Along with the framework measures, member states can also introduce other state aid measures, which would fall to be assessed either under article 1072 b or article 1073 b or c tfeu. European commission publishes its emergency covid19 state. Market failures, transaction costs and article 1011 tfeu. Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social and territorial cohesion, the union and the member. Addressing the economic impact of the covid19 outbreak. The preliminary ruling procedure pursuant to article 267 tfeu 1. Council regulation ec no 99498 of 7 may 1998 on the application of articles 92 and 93 of the treaty establishing the european community to certain categories of.
It covers not only nonrepayable subsidies, loans on favourable terms, tax and duty exemptions, and loan guarantees, but even state participation in undertakings in so far as preferential. Competition law, state aid law and freemovement law. Article 107 of the treaty on the functioning of the european union tfeu ensures that aid granted by a member state or through state resources does not distort competition and trade within the eu by favouring certain companies or the production of certain goods to prevent that companies doing business in the internal market receive selective advantages that. Its core role is the regulation of monopolies, which restrict competition in private industry and produce worse outcomes for consumers and society. Guidelines on the application o f article 1011 tfeu, oj 2004 c 10197. Treaty on the functioning of the european union tfeu. Notification under article 1072b tfeu description of the.
Rules applying to undertakings article 101 ex article 81 tec 1. Eu competition law abuse of dominance article 102 tfeu. Aid to make good the damage caused by natural disasters. Article 107 of the treaty on the functioning of the european union tfeu, in particular 1073a and c thereof.
Article 1062 tfeu is traditionally seen as a derogation to the treaty provisions and has an awkward role in the treaty chapter on competition. The reinterpretation of tfeu article 344 in opinion 2. For the purposes set out in article 3 of the treaty on european union, the activities of the member states and the union shall include, as provided in the treaties, the adoption of an economic policy which is based on the close coordination of member states economic policies, on the internal market and on the definition of common objectives, and conducted. Ii abstract this thesis investigates competition law, state aid law and freemovement law in their interaction with article 11 tfeus obligation to integrate environmental protection requirements into. This includes measures to compensate companies in sectors. Reference for a ruling on interpretation article 267 1 sentence 1 a and b alternative 2 tfeu refers to how a rule of union. Such aid must be notified by member states and the commission will assess it under article 1072 b tfeu. Article 102 of the treaty on the functioning of the. At the same time, by requiring that state aid may be granted only if. Structure of article 107 tfeu 2 the article is divided. Member states shall respect their independence and shall not seek to influence them in the performance of their tasks.
Article 107 2 b of the treaty on the functioning of the european union tfeu stipulates that aid to make good the damage caused by natural disasters shall be compatible with the internal market. Council regulation ec no 99498 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 enabling regulation. Member states may also fall back on article 1073c tfeu and the commissions rescue and restructuring guidelines to provide aid to companies in difficulty. C20162946 commission notice on the notion of state aid as referred to in article 1071 of the treaty on the functioning of the european union. Under the scheme, event organizers will be able to recoup losses caused by the cancellation or postponement of large events due to the covid19 outbreak. Article 107 2 b tfeuarticle 107 2 b tfeu enables member states, subject to the european commissions approval, to compensate companies or specific sectors in the form of schemes for the damage suffered in exceptional circumstances, such as those caused by the covid19 outbreak. Declaration on article 126 of the treaty on the functioning of the european union. The state aid temporary framework has its legal basis in article 107. Declaration on article 156 of the treaty on the functioning of the european union. Aids granted by states article 107 ex article 87 tec oj c 115, 9. Particular restrictions that fall within the impugned category are therefore automatically seen as having the object of restricting competition under article 1011 tfeu. Article 245 ex article 2 tec the members of the commission shall refrain from any action incompatible with their duties. Agreements that restrict competition by object under article. Article 1072 b tfeu article 1072 b tfeu enables member states, subject to the european commissions approval, to compensate companies or specific sectors in the form of schemes for the damage suffered in exceptional circumstances, such as those caused by the covid19 outbreak.
Iv, issue 8 november 2016 6949 enjoyed by the consumer. Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social and territorial cohesion, the union and the. Notification under article 1072b tfeu description of. Article 107 of the treaty on the functioning of the european union tfeu, in particular 107 3a and c thereof. C20162946 commission notice on the notion of state aid as referred to in article 107 1 of the treaty on the functioning of the european union. On march 2020, the commission published a coordinated economic response to the covid19 outbreak communication, in which it i. Direct grants, repayable advances or tax advantages of up to 800,000 loan guarantees minimum premiums. Alert memorandum amendment to the state aid temporary. Although a detailed analysis of the impact of eu public policy on the applicability of article v 2 b of the new york convention goes beyond the scope of this article, some considerations on the peculiarities of the case at hand will demonstrate that the situation where the state aid measure has been declared incompatible with article 107 tfeu. Formerly known as the ec treaty, the treaty of rome or the treaty establishing the european community. Consolidated version of the treaty on the functioning of. C20162946 commission notice on the notion of state aid as.
Consolidated version of the treaty on the functioning of the. Its core role is the regulation of monopolies, which restrict competition in private industry and. Glossarytreaty on the functioning of the european union tfeurelated contentone of the two main treaties that form the basis of eu law. C20162946 commission notice on the notion of state aid. Article 1071 tfeu selective advantage state aid under art. Article 14 tfeu is supplemented by protocol no 26, which refers to article 14 tfeu and again emphasises the importance of these services, their diverse nature, the wide measure of discretion enjoyed by national, regional, and local authorities, and the principle of universal access. Save as otherwise provided in the treaties, any aid granted by a member 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 shall, in so far as it affects trade between member states, be incompatible with the internal market. Consolidated version of the treaty on the functioning of the european union part three. The preliminary ruling procedure pursuant to article 267.
In this case, the commission found that measures of state aid were compatible with the internal market simultaneously pursuant to article 1062 tfeu as regards the operating aid and article 1073c tfeu as regards the investment aid. Bekkedal notes the conventional reading of the provision is that it is an autonomous exception to all of the treaty provisions and is not confined to specific types of infringement of the tfeu. Rather, according to article 108 tfeu, all new state aid measures according to the five criteria set out in article 107 tfeu have to be notified to the european commission. Declaration on article 107 2 c of the treaty on the functioning of the european union. For example, there should be no basis for a state aid challenge if a member state generally imposes. Such aid must be notified by member states and the commission will assess it under article 107 2 b tfeu. Common rules on competition, taxation and approximation of laws chapter 1. Article 102 tfeu article 102 tfeu ex article 82 ec, ex article 86 ec any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it. Chapter 12 article 109 tfeu determination of regulations regarding the application of arts 107 and 108 chapter regulation ec no 12003 on the implementation of the rules on competition chapter 14 regulation ec no 92004 on the control of. Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social. It prohibits restrictive agreements between independent market operators acting either at the same level of the economy horizontal agreements, often as actual or potential competitors, or at different levels vertical agreements, mostly as producer and distributor. The reinterpretation of tfeu article 344 in opinion 2 and its potential consequences article pdf available in german law journal 161. Prohibition on aid under article 107 tfeu state aid includes all statefunded aid granted directly by member states.
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