State Aid Monitoring Regulations, 2004

L.N. 210 of 2004

BUSINESS PROMOTION ACT

(CAP. 325)

State Aid Monitoring Regulations, 2004

IN exercise of the powers conferred upon him by article 58A of

the Business Promotion Act, the Prime Minister and Minister of

Finance, has made the following regulations:-

The title of these regulations is the State Aid Monitoring

Regulations, 2004 and shall come into force on 1 st May, 2004.

Regulation 5(3)

Notification of Aid

Summary Information on Aid

Information requested

Explanatory remarks

Name of Beneficiary of Aid.

The name of the recipient or

undertaking receiving the aid.

Title of aid or aid scheme.

The name of the aid or aid scheme - a

precise indication of the rules and

conditions of application should be

given.

Legal basis.

The precise legal reference for

the aid.

Annual aid planned to be granted to

Amounts in local currency - the

the undertaking. In the case of

annual overall amount for all

existing aid, the annual aid granted.

aid instruments.

Maximum aid intensity.

The maximum aid amount to be

granted.

Date of implementation.

The date from which the aid will

be/has been granted.

Duration and termination of the aid

The duration and the date (year and

or aid scheme.

month) until when the aid

will be granted.

Objective of aid.

The objectives for which the

aid will be/has been granted.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

In these regulations, unless the context otherwise requires

“Act” means the Business Promotion Act;

“Aid”, “aid scheme”, “existing aid”, “individual aid”, “new

aid” and”“unlawful aid” shall have the same meaning assigned

to them by Article 1 of the Council Regulation;

“Board” means the State Aid Monitoring Board established

under article 57 of the Act;

“the Commission” means the Commission of the European

Union as established in the EC Treaty as subsequently amended;

“the Council” means the Council of the European Union

as established in the EC Treaty as subsequently amended;

“Council Regulation” means Council Regulation (EC) No

659/1999 of 22 March 1999 laying down detailed rules for the

application of Article 93 of the EC Treaty, and any subsequent

amendments thereto;

“European Union” shall have the same meaning assigned

to it by article 2 of the European Union Act;

“non-notified aid” means any aid granted without being

notified in accordance with regulation 5;

“notified aid” means any aid notified in accordance with

regulation 5;

“provider of aid” includes the Government, its Ministries

and departments, entities falling under such Ministries and

departments, as well as local councils that, directly or indirectly,

grant or plan to grant aid, as well as any other bodies authorized

by the State to grant aid.

(1) Any aid granted by the State or through State Conditions for the

resources, in any form whatsoever, which distorts or threatens to granting of aid.

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 common market.

(2) The following shall be compatible with the common

market

(a) aid having a social character, granted to individual

consumers, provided that such aid is granted without

discrimination related to the origin of the products concerned;

(b) aid to make good the damage caused by natural

disasters or exceptional occurrences.

(3) The following may be considered to be compatible

with the common market

(a) aid to promote the economic development of areas

where the standard of living is abnormally low or where there

is serious underemployment;

(b) aid to promote the execution of an important project

of common European interest or to remedy a serious disturbance

in the economy of the State;

(c) aid to facilitate the development of certain economic

activities or of certain economic areas, where such aid does not

adversely affect trading conditions to an extent contrary to the

common interest;

(d) aid to promote culture and heritage conservation

where such aid does not affect trading conditions and

competition in the Community to an extent that is contrary to

the common interest;

(e) such other categories of aid as may be specified by

decision of the Council acting by a qualified majority on a

proposal from the Commission

Provided that such aid that is compatible with the principles

and practices referred to in article 58 (l)(b) of the Act may also be

granted.

(1) In exercise of its powers and functions under the Act,

the Board shall have the right of access to all relevant information,

and may seek the clarifications and explanations that it may deem

necessary for its deliberations and conclusions.

(2) Where the Board considers that the information

received from the provider of aid is not sufficient, it shall request all

necessary additional information.

(3) The Board may invite any interested party to make

submissions regarding an aid under examination.

(1) The provider of new aid shall notify the Board with

all proposals for any such aid.

(2) The provider of new aid shall furnish the Board with

all the necessary information required by the said Board to issue its

opinion.

(3) The notification shall be made on a return in the form

in accordance with Schedule I of these regulations.

(1) The Board shall examine the proposed aid and shall,

within forty working days from receipt of all information requested

by it, issue to the provider of aid and to any pertinent party, a

preliminary opinion regarding the notified aid. The provider of aid

as well as any party, may, within ten working days of receipt of the

preliminary opinion, make further submissions.

(2) (a) Where the Board, after the receipt of further

submissions or after the lapse of time of such submissions, is of the

opinion that the notified aid is compatible with these regulations, it

shall issue its final opinion.

(b) The Board shall also notify the Commission of the

proposed aid and provide all the necessary information on such aid

in order to enable it to take a decision.

(3) (a) Where the Board, after such receipt or such lapse

of time for further submissions, is of the opinion that the notified

aid may not be compatible with these regulations, it shall request

the provider of the proposed aid to make all the necessary additional

detailed submissions concerning the said aid.

(b) The Board shall, on receiving all the necessary

information, issue its final opinion within forty working days from

receipt of last submissions and communicate its conclusions in

writing to the provider of the proposed aid>

Provided that, where the provider of such aid, within one

month, expressly so requests, the Board shall also notify the

Commission of the proposed aid.

Where the Board becomes aware of non-notified Non-notified aid.

aid, it shall start examining such aid without delay.

The Board may, after giving the provider of non-notified Suspension of non-

aid the opportunity to make its submissions, require the said provider notified aid.

to suspend such aid until the Board issues its opinion.

Unlawful aid shall be recovered by the provider of aid in Recovery of

unlawful aid.

line with article 14 of the Council Regulation.

Where the provider of aid fails to comply with the opinion Non-compliance.

of the Board, or with any provision of these regulations, the Board

shall refer the matter to the Minister responsible for the provider of

such aid.

The provider of aid shall, not later than the first three Returns required

months of each calendar year, supply the Board, on a prescribed by the Board.

form, with details of any aid granted during the immediately

preceding year.

B