Keywords
Summary

Keywords

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1 . STATE AID - DEFINITION - AID GRANTED BY REGIONAL OR LOCAL BODIES - INCLUSION - DISTINCTION BETWEEN DIFFERENT KINDS OF AID ON THE BASIS OF THEIR OBJECTIVE - NONE

( EEC TREATY, ART . 92*(1 )*)

2 . STATE AID - COMMISSION DECISION FINDING AN AID PROGRAMME TO BE INCOMPATIBLE WITH THE COMMON MARKET - OBLIGATION TO STATE REASONS - NECESSARY DETAILS

( EEC TREATY, ARTS 92 AND 190 )

3 . STATE AID - PROHIBITION - EXEMPTIONS - AID FOR THE DEVELOPMENT OF PARTICULAR AREAS - DISTINCTION BETWEEN ARTICLE 92*(3)*(A ) AND ARTICLE 92*(3)*(C ) OF THE TREATY

( EEC TREATY, ART . 92*(3)*(A ) AND ( C ))

Summary

1 . ARTICLE 92*(1 ) OF THE TREATY IS DIRECTED AT ALL AID FINANCED FROM PUBLIC RESOURCES . IT FOLLOWS THAT AID GRANTED BY REGIONAL OR LOCAL BODIES OF MEMBER STATES, WHATEVER THEIR STATUS AND DESCRIPTION, COMES UNDER THE SAID PROVISION .

ARTICLE 92*(1 ) OF THE TREATY MAKES NO DISTINCTION BETWEEN DIFFERENT KINDS OF AID ACCORDING TO WHETHER THEY CONCERN A WHOLE SECTOR OF THE ECONOMY OR HAVE A REGIONAL OBJECTIVE AND ARE INTENDED TO ENCOURAGE UNDERTAKINGS TO INVEST IN A PARTICULAR AREA, AND IT DOES NOT PROVIDE THAT ONE KIND SHOULD AUTOMATICALLY COME WITHIN ITS AMBIT .

2 . IN THE STATEMENT OF ITS REASONS FOR A DECISION ON THE COMPATIBILITY OF AN AID PROGRAMME WITH THE COMMON MARKET THE COMMISSION MAY CONFINE ITSELF TO EXAMINING THE CHARACTERISTICS OF THE PROGRAMME IN QUESTION IN ORDER TO DETERMINE WHETHER, BY REASON OF THE HIGH AMOUNTS OR PERCENTAGES OF AID, THE NATURE OF THE INVESTMENTS FOR WHICH AID IS GRANTED OR OTHER TERMS OF THE PROGRAMME, IT GIVES AN APPRECIABLE ADVANTAGE TO RECIPIENTS IN RELATION TO THEIR COMPETITORS AND IS LIKELY TO BENEFIT IN PARTICULAR UNDERTAKINGS WHICH ENGAGE IN TRADE BETWEEN MEMBER STATES .

3 . THE USE OF THE WORDS "ABNORMALLY" AND "SERIOUS" IN THE EXEMPTION CONTAINED IN ARTICLE 92*(3)*(A ) OF THE TREATY SHOWS THAT IT CONCERNS ONLY AREAS WHERE THE ECONOMIC SITUATION IS EXTREMELY UNFAVOURABLE IN RELATION TO THE COMMUNITY AS A WHOLE .

THE EXEMPTION CONTAINED IN ARTICLE 92*(3)*(C ), ON THE OTHER HAND, IS WIDER IN SCOPE AND GIVES THE COMMISSION POWER TO AUTHORIZE AID INTENDED TO FURTHER THE ECONOMIC DEVELOPMENT OF AREAS OF A MEMBER STATE WHICH ARE DISADVANTAGED IN RELATION TO THE NATIONAL AVERAGE .