European Competition Law Annual 1999: Selected Issues in the by Claus-Dieter Ehlermann, Michelle Everson

By Claus-Dieter Ehlermann, Michelle Everson

The ecu pageant legislations Annual 1999 is fourth in a sequence of volumes together with the fabrics of the once a year Workshops on european festival legislations and coverage held on the Robert Schuman Centre of the ecu college in Florence. the current quantity includes the contributions and commentaries of a bunch of senior european policy-makers, well known teachers and overseas felony specialists near to country reduction regulate - a distinct and complicated characteristic of european festival coverage, often little explored and understood. The members targeting the facets of ecu nation relief coverage that have been such a lot tough on the time of the fourth version of the EUI pageant Workshop (June 1999), as follows: the commercial justifications for and results of nation Aids; particular difficulties coming up within the keep watch over of nation Aids within the banking area; and the chances for a extra decentralized regulate of nation Aids within the european.

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Extra info for European Competition Law Annual 1999: Selected Issues in the Field of State Aid (European Competition Law Annual)

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Furthermore, what are the legal effects of an interim Commission injunction suspending the underlying guarantee pending Commission investigation into the legality of aid contained by it? Finally, if a state guarantee is ultimately declared to contain illegal aid to the borrower, what should the legal consequences be with respect to the validity of the guarantee vis-a-vis the lending bank, that is considered by some commentators to be simply a 'third party' in such cases? xxxiv Introduction These issues provoked a particularly vivid and controversial discussions amongst the participants to the Workshop.

The pressure for national level control of state aid would probably be stronger were the business community to feel that there be a real need for such control. In this respect, the overall picture seems to be contradictory. At EU level, sensitivity towards the distorting effects of state aids has clearly grown, in particular, during the last decade. US participants, however, indicated that companies—most notably, those operating on a nation-wide basis—seem to be relatively comfortable with the different subsidy schemes that operate in different parts of the country.

These latter considerations apply equally in markets where there is no overcapacity, and it is, therefore, appropriate for the Commission to reserve the right to exact reductions even when no overcapacity is shown to exist. 9 OJ(1997)C1. 10 The fact that the region badly needed new investment could not be allowed to override the serious risk of distortion in this very sensitive sector. In practice, the aid was repaid—but, the investment still went ahead as planned. This reinforces my conviction that the Commission's decision was correct, since aid should only be granted where it is necessary to achieve the objective envisaged.

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