State aid and EU funding Are they compatible
"State aid and EU funding - Are they compatible? ” "The case of transport infrastructure" June 2018 Herald RUIJTERS, Directorate on Investment, Innovative and Sustainable Transport DG Mobility and Transport European Commission Mobility and Transport
Needs for public intervention • Investment needs (2021 -2030): EUR 500 billion for the TEN-T core network and EUR 1500 billion for overall transport investments. • Additional investment needed to accelerate the transition to smart and low-emission mobility, notably in urban areas. • Transport sector is characterised by a systemic market failure and a high level of positive externalities which cannot be monetized, without public intervention, the TEN-T policy objectives would not be achieved. Mobility and Transport
CEF Grants • The CEF Regulation sets out the rules for granting EU financial support to TEN-T priority Projects of common interest. • CEF is only supporting infrastructure. 70% goes to railway infrastructure. • CEF funding does not constitute State aid since it is a programme under direct management by the Commission. • The co-financing support provided by Member States may involve State aid. • Most assets financed by CEF, such as rail infrastructure, are not subject to State aid rules. Mobility and Transport
CEF Financial Instruments • CEF and the EFSI regulations significant increase in the use of financial instruments to attract private finance to transport infrastructures. • EU financial instruments shall be established on the basis of an ex ante evaluation, and will ensure non-distortion of competition in the internal market and consistency with State aid rules. • The Commission ensures consistency of the Debt Instrument under the CEF with applicable Union law, in particular and where relevant State aid rules. Mobility and Transport
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