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Parliamentary questions
16 May 2018
E-001061/2018
Answer given by Ms Creţu on behalf of the Commission

The Commission is committed to the Treaty-based objective of reduction of economic, social and territorial disparities. To this purpose, all EU regions benefit from the European Structural and Investment (ESI) Funds.

Compliance with EU rules is a condition for support under ESI Funds. As a prior condition to receive reimbursements from the EU budget, arrangements for the effective application of the EU State aid rules were required. In addition to the state aid rules, explicit safeguards were added in the relevant programmes, prohibiting support to large enterprises in case it would result in a considerable loss of jobs in the existing locations of this entrepreneur within the EU.

As concerns Embraco, based on information provided by the Slovak authorities on state aid (including in form of tax breaks), the Commission is not aware of any aid measures that are not in line with EU State aid rules. According to the Slovak authorities, two grant applications have been approved for Embraco Slovakia under the European Regional Development Fund (ERDF) amounting to EUR 450 000 but no aid has been granted yet.

Slovak authorities have provided to the Commission detailed information on the system put in place to ensure that the support from ESI Funds will not affect employment within the Union. Furthermore, ESI Funds expenditure is subject to rigorous audits: if the expenditure supported is not legal and regular, national authorities have the obligation to withdraw it from financing. Failure to do so will result in the Commission imposing net financial correction, decreasing the support to the Member State concerned.

Last updated: 17 May 2018Legal notice