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State aid: Commission adopts Simplification Package for State aid procedure

The European Commission has recently adopted a Simplification Package to accelerate State aid decisions. The package consists of two separate initiatives: a Best Practices Code and a Simplified Procedure Notice, both aiming to improve the efficiency, transparency and predictability of State aid procedures.

The principal aim of the Best Practice Code is to provide guidance on the day-to-day conduct of State aid proceedings, in particular with regard to their duration, predictability and transparency. It includes a number of voluntary arrangements between the Commission and the Member States to make procedures as productive and efficient as possible for all parties concerned. The Code will apply to all cases addressed by the Commission. However the specific features of an individual case may require an adaption of, or deviation from the Code.

The Simplified Procedure Notice provides for the accelerated examination and approval of straightforward State aid cases in light of the fact that certain types of State support measures are normally approved without raising any doubts as to their compatibility with the common market. The Notice lists the categories of measures that are in principle suitable for treatment under the simplified procedure, including measures corresponding to well-established practice and proposed extensions of existing schemes. The Commission will endeavour to adopt its decision within the accelerated time frame of twenty working days upon receipt of a complete notification.

The Simplification Package was adopted by the Commission on 29 April 2009 and should enter into force this summer. The package should benefit business by facilitating faster State aid decisions, notably through earlier co-operation between Member States and the Commission.