State aid in the rail, inland waterway and multimodal transport sector

SUMMARY OF:

Regulation (EU) 2022/2586 – application of Articles 93, 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of State aid in the rail, inland waterway and multimodal transport sector

WHAT IS THE AIM OF THE REGULATION?

It simplifies administration of State aid where distortion to competition is minimal. It does so by allowing the European Commission to use regulations to rule that certain categories of State aid are compatible with the internal market and do not need to be notified under Article 108(3) of the Treaty on the Functioning of the European Union (TFEU).

KEY POINTS

The Commission may adopt regulations to allow State aid that is used to:

• coordinate transport;
• reimburse the cost of certain public service obligations.

The regulations:

• must specify for each category of aid:
  • the purpose,
  • the beneficiaries,
  • thresholds, including intensity (percentage of costs) and maximum levels,
  • the conditions on cumulating aid,
  • transparency and monitoring rules,
  • the period of validity, and transition arrangements if the validity is not extended;
• may:
  • set thresholds or other conditions for notifying individual aid,
  • exclude certain sectors from their scope,
  • attach further conditions to ensure compatibility with the internal market.

Transparency and monitoring rules require European Union (EU) Member States to:

• provide the Commission with summaries of the aid granted;
• record compliance with the regulation and submit any information if the Commission so requests;
• submit a report, which is shared with all Member States, to the Commission at least once a year on their application of the regulations.

The Commission:

• before adopting a regulation:
  • publishes a draft giving interested parties at least a month to submit any comments,
  • consults the advisory committee on State aid and takes account of its opinion;
• submits an evaluation report every 5 years to the European Parliament and the Council of the European Union.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 19 January 2023.

BACKGROUND

• Article 93 TFEU says that State aid for inland transport is compatible with EU rules if it is used to coordinate transport or reimburse certain public service costs.
• Article 107(1) TFEU bans any State aid which distorts, or threatens to distort, competition between companies and affects trade within the internal market.
• Article 108(3) TFEU requires Member States to notify the Commission of any plans to grant or alter State aid.
• Regulation (EU) 2015/1588 (see summary) gives the Commission the power to exempt certain categories of State aid from the notification requirements in Article 108(3) TFEU.

MAIN DOCUMENT

Council Regulation (EU) 2022/2586 of 19 December 2022 on the application of Articles 93, 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of State aid in the rail, inland waterway and multimodal transport sector (OJ L 338, 30.12.2022, pp. 35–39).

RELATED DOCUMENTS

Consolidated version of the Treaty on the Functioning of the European Union – Part Three – Union policies and internal actions – Title VI – Transport – Article 93 (ex Article 73 TEC) (OJ C 202, 7.6.2016, p. 86).

Consolidated version of the Treaty on the Functioning of the European Union – Part Three – Union policies and internal actions – Title VII – Common rules on competition, taxation and approximation of laws – Chapter 1 – Rules on competition – Section 2 – Aids granted by States – Article 107 (ex Article 87 TEC) (OJ C 202, 7.6.2016, pp. 91–92).

Consolidated version of the Treaty on the Functioning of the European Union – Part Three – Union policies and internal actions – Title VII – Common rules on competition, taxation and approximation of laws – Chapter 1 – Rules on competition – Section 2 – Aids granted by States – Article 108 (ex Article 88 TEC) (OJ C 202, 7.6.2016, pp. 92–93).

Council Regulation (EU) 2015/1588 of 13 July 2015 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of horizontal State aid (codification) (OJ L 248, 24.9.2015, pp. 1–8).

Successive amendments to Regulation (EU) 2015/1588 have been incorporated in the original text. This consolidated version is of documentary value only.

Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, pp. 1–128).

See consolidated version.

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 and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70 (OJ L 315, 3.12.2007, pp. 1–13).

See consolidated version.

last update 08.02.2023