The areas of such action shall, at european level, be. Aid intended to remedy a serious disturbance in the economy. European commission temporary framework kpmg global. List of member state measures approved under article 1072b tfeu, article 1073b tfeu and under the temporary state aid framework. By way of derogation from article 164 of the treaty on european union, as from 1 november 2014 and subject to the provisions laid down in the protocol on.
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. State aid law as a limit to compliance june 15, 2015. Article 1012 declares that any agreement or decision prohibited by art. As from 1 december 2009, the lisbon treaty significantly revised and renamed the treaty on the functioning of the european union. Exemptions to this prohibition are provided by the tfeu art. Jan 26, 2018 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 concentrations between undertakings. State aid measures adopted under article 1072 b tfeu 12 march. Tfeu generally prohibits tate aid, while reckoning that in. Article 102 of the treaty on the functioning of the.
Notion of state aid is defined by the legal definition contained in article 107 par. Since the beginning of the coronavirus outbreak, the following state aid measures have been adopted under article 107 2 b, article 107 3 b and under the temporary framework. Article 1072 b natural disasters or exceptional occurrences covid19 not a natural disaster. Article 1071 of the treaty on the functioning of the european union tfeu intro. 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. Such aid must be notified by member states and the commission will assess it under article 1072 b tfeu. Article 10 provides a basis to make article 1011 inapplicable to certain. Article 2 the community shall have as its task, by establishing a common market and an economic and monetary union and by implementing the common policies or acti vities refened to in articles 3 and 3a, to promote throughout the community a.
Articles 107 2, 107 3 tfeu and, to some extent, article 1062 tfeu provide for an exemption mechanism. The commission last extended the temporary framework on 3 april 2020. Critically discuss how eu law as applied under article. This chapter shows that although a state might grant exclusive rights for environmental reasons, the first form of environmental integrationthe prevention of conflictis not possible under article 106 tfeu. Article 107 of the treaty on the functioning of the european union tfeu, in particular 107 3 a and c thereof. Thus article 1073 b can only offer the second form of integration. Article 101 tfeu is one of the most prominent treaty provisions on competition. This temporary framework, which is due to be adopted in the next few days, is inspired by the framework introduced during the 2008 financial crisis and in force until 2011 under article 1073 b tfeu in. Consolidated version of the treaty on the functioning of. It has been accepted for inclusion in dissertations by an. Pdf the reinterpretation of tfeu article 344 in opinion 2. The reinterpretation of tfeu article 344 in opinion 2 and its potential consequences article pdf available in german law journal 161. For full access to this pdf, sign in to an existing account, or purchase an annual. Article 1073 b tfeu enables eu member states to compensate companies for the damage directly caused by exceptional occurrences, such as those caused by the covid19 outbreak.
Formerly known as the ec treaty, the treaty of rome or the treaty establishing the european community. Mar 25, 2020 the framework sets out a series of state aid measures that the commission will temporarily consider compatible with article 1073 b tfeu, which allows for state aid to remedy a serious. The identification of the institutional treaty framework for the interpretation of article 101 is. Consolidated version of the treaty on the functioning of the. Article 1073b tfeu which allows state aid to be granted to remedy a serious disturbance to the economy of a member state. Currently, the situation in italy falls under the provision of this article due to the impact of the covid19 outbreak. Article 106 tfeu only provides for the second form of.
Notification under article 1072b tfeu description of. A new temporary state aid framework to fight the effects of. Framework aimed at applying article 1073 b tfeu to the covid19 crisis in the eu. While member states are encouraged to implement aid in the form of schemes and under the gber. European commission publishes its emergency covid19 state. Article 10 tfeu in view of the relative dearth of cou rt cases on that provision. 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. Article 107 of the treaty on the functioning of the european union tfeu, in particular 1073a and c thereof. Coronavirus outbreak list of member state measures approved under article 1072 b tfeu, article 1073 b tfeu and under the temporary state aid framework 22nd may 2020, 9. Treaty on the functioning of the european union tfeu. The aid is granted in order to remedy a serious disturbance in the economy of a member state and preserve financial stability.
Aid intensity under article 1072b tfeu, aid may cover up to 100%. State aid measures adopted under article 107 2 b tfeu 12 march. Direct grants, selective tax advantages and advance payments. The nature and form of aid 12 the measure provides aid in the form of guarantees on loans. Notification under article 1072b tfeu description of the. However, there may be more situations that call for measures to be assessed under article 1073 b tfeu. The commission found that the scheme was compliant with article 1073 b tfeu and met the conditions of the temporary framework, directive 201459eu on bank recovery and resolution, and regulation 8062014 on the single resolution. In contrast, the application of article 107 3 tfeu seems to be more focused on derogations associated with investment aid and excludes the continuous aid required to allow an undertaking in receipt of state aid to continue to function i. Member states will be able to set up schemes to grant up to 800,000 to a company to address its urgent liquidity needs. According to the doctrine of imputability, only voluntarily adopted measures fall within the scope of application of article 107 tfeu. The temporary framework allows for a very quick assessment and if the member states assistance scheme complies with the requirements of the temporary framework the commission will consider such state aid compatible with the internal market on the basis of article 1073 b, 2nd alternativetfeu. 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.
Mar 19, 2020 the state aid temporary framework is based on article 1073 b tfeu. In fact, there are three subsections in article 101. Member states will be able to provide state guarantees to. State resources 3 which distorts or threatens to distort competition 4 and.
A new temporary state aid framework to fight the effects of the. Jun 17, 2015 ortolani, pietro, intraeu arbitral awards visavis article 107 tfeu. 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. 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. Article 107 3 b tfeu new temporary framework in force until december 31, 2020, enabling. Communication from the commission on the application, from 1 august 20, of state aid rules to support.
The framework is based on article 1073b of the treaty of the functioning of the european union tfeu, which allows measures to be taken to. Articles 1072, 1073 tfeu and, to some extent, article 1062 tfeu provide for an exemption mechanism. Such aid must be notified by member states and the commission will assess it under article 107 2 b tfeu. Temporary framework for state aid measures during the covid19. The temporary framework and article 107 3 b tfeu aid to remedy a serious disturbance in the economy of a member state for a comprehensive overview of the types of measures that may be notified in accordance with article 107 3 b tfeu and the new temporary framework, which clarifies the application of this article in the current crisis. 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 is shown that the polluterpays principle is not used for preventative integration but only for supportive integration. Background european commission temporary framework eu. The union may take initiatives to ensure coordination of member states social policies. Iv, issue 8 november 2016 6949 enjoyed by the consumer. State aid law as a limit to compliance pietro ortolani. Client alert antitrustcompetition state aid response to. The upshot of this interpretation is that receipt of this aid will not trigger resolution. In its notice on the application of the article 81 3 ec 2004, now article 101 3 tfeu, the commission includes the statement that. For example, there should be no basis for a state aid challenge if a member state generally imposes.
Article 6 the union shall have competence to carry out actions to support, coordinate or supplement the actions of the member states. European commission publishes its emergency covid19 state aid. 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. Article of the tfeu modified form of articles 107 1 and 108 3 conditions on modified articles 107 1 and 108 3 article 107 1 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 shall, in so far as it affects trade between the united kingdom and.
This chapter shows that preventative integration occurs neither within the current framework of article 1071 tfeu nor in the context of article 1072 and 3 tfeu. 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. Nevertheless, recent developments in eu case law may cast doubt on this assumption. The interplay between industrial policy and state aid van doorne. Since the beginning of the coronavirus outbreak, the following state aid measures have been adopted under article 1072 b, article 1073 b and under the temporary framework. Where it is required to act by a simple majority, the council shall act by a majority of its component members.
Background european commission temporary framework eu tax. Aid approved under article 1073 b tfeu serves to remedy a serious disturbance in the economy of a member state. Frameworks and guidelines applying to most industry sectors. Core provisions of the treaty on the functioning of the european union tfeu, formerly called treaty establishing the european community ec article 107 of the tfeu. Addressing the economic impact of the covid19 outbreak.
Article 107 1 treaty functioning european union 2008 tfeu ex article 87 1 states. 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. Is the european commissions recent interpretation of article. Alert memorandum europes economic response to the covid19. Article 10711 of the treaty on the functioning of the european union the tfeu. Legislation treaty provisions on state aid full texts of the treaties. According to the commission, the provisions of article 1073 b tfeu would allow member states to meet acute liquidity needs and support companies facing bankruptcy due to the covid19 outbreak. Mar 20, 2020 the framework is based on article 1073 b of the treaty of the functioning of the european union tfeu, which allows measures to be taken to remedy a serious disturbance in the economy of a member state. Glossarytreaty on the functioning of the european union tfeurelated contentone of the two main treaties that form the basis of eu law. List of member state measures approved under article 1072b tfeu, article 107 3b tfeu and under the temporary state aid framework.
Article of the tfeu modified form of articles 1071 and 1083 conditions on modified articles 1071 and 1083 article 1071 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 shall, in so far as it affects trade between the united kingdom and. On 1 december the treaty of lisbon entered into force. Team 20112012 article 10 an article 101 violation, as in tmobile, is one that satisfies the elements of article 1011. The commission sets out the compatibility conditions that it will apply to aid granted by member states under article 1073 b. Given the limited size of the eu budget around 1% of the eus gdp, most of the public expenses related to. Is the european commissions recent interpretation 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. Precautionary recapitalisations under the bank recovery. Since this kind of aid may be granted only in response to a serious disturbance that affects the entire economy, it appears that the commission considers that only in italy is the impact of the covid19 outbreak of such nature and scale that allows the use of article 1073 b tfeu. State guarantees for loans taken by companies from banks.