(Consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2012)0730),

–  having regard to Article 109 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7-0005/2013),

–  having regard to Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation)(1),

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Transport and Tourism (A7-0179/2013),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5.  Instructs its President to forward its position to the Council and the Commission.

Text proposed by the Commission   Amendment Amendment 2 Proposal for a regulation Recital 1 (1)  Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 of the Treaty establishing the European Community to certain categories of horizontal State aid, empowers the Commission to declare by means of regulations that certain specified categories of aid are compatible with the internal market and are exempted from the notification requirement of Article 108(3) of the Treaty. (1)  Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 of the Treaty establishing the European Community to certain categories of horizontal State aid, empowers the Commission to declare by means of regulations that certain specified categories of aid are compatible with the internal market and are exempted from the notification requirement of Article 108(3) of the Treaty. Regulation (EC) No 994/98 specifies those categories, while the details of the exemptions and their objectives are clarified in the relevant regulations and guidelines. Amendment 3 Proposal for a regulation Recital 1 a (new) (1a)  The Commission aims to find the right balance between concentrating its enforcement efforts on cases with a significant impact on the internal market by exempting certain specified categories of State aid from the notification requirements, while at the same time preventing too many services from being excluded from State aid scrutiny. Amendment 1 Proposal for a regulation Recital 1 b (new) (1b)  Due regard should be given to the conclusions of the European Court of Auditors special report No 15/2011 entitled ‘Do the Commission procedures ensure effective management of State aid control?’. Amendment 4 Proposal for a regulation Recital 3 (3)  Regulation (EC) No 994/98 authorises the Commission to exempt aid for research and development, but not for innovation. Innovation has since become a Union policy priority in the context of ‘Innovation Union’, one of the Europe 2020 flagship initiatives. Moreover, many aid measures for innovation are relatively small and create no significant distortions of competition. (3)  Regulation (EC) No 994/98 authorises the Commission to exempt aid for research and development, but not for innovation. Innovation, including social innovation, has since become a Union policy priority in the context of ‘Innovation Union’, one of the Europe 2020 flagship initiatives. Moreover, many aid measures for innovation are relatively small and create no significant distortions of competition, in particular if they are in line with the Europe 2020 flagship initiatives and the new framework programme for research and innovation, Horizon 2020. The new general block exemption regulation will specify the conditions and types of aid suitable for exemption. Amendment 23 Proposal for a regulation Recital 9 (9)  In the amateur sports sector, public support measures, to the extent that they constitute State aid, usually have limited effects on intra-Union trade and do not create serious distortions of competition. The amounts granted are typically also limited. Clear compatibility conditions can be defined on the basis of the experience acquired so as to ensure that aid to amateur sports does not give rise to any significant distortion. (9)  As a rule, amateur sport cannot be regarded as an economic activity. Where, exceptionally, amateur sports include economic activities and public support measures constitute State aid, they have fundamentally limited effects on intra-Union trade and do not create distortions of competition. The amounts granted are typically also limited. Clear compatibility conditions can be defined on the basis of the experience acquired so as to ensure that aid to amateur sports does not give rise to any significant distortion where such sports, exceptionally, include economic activities.The new general block exemption regulation should clarify whether, and distinguish between, State aid considered to be directed towards sport associations for their activities or towards sport infrastructure projects. Amendment 24 Proposal for a regulation Recital 9 a (new) (9a)  In view of the major social significance of sport, encouraging youth development within professional clubs is acknowledged in the case-law of the Court of Justice of the European Union to be a legitimate aim. Union State aid policy should therefore create a clear framework in which Member States can promote those objectives and support sports organisations for that purpose. Amendment 6 Proposal for a regulation Recital 10 (10)  In relation to aid concerning air and maritime transport, in the Commission's experience, aid having a social character to residents of remote regions for transport, provided that it is granted without discrimination related to the identity of the carrier, does not give rise to any significant distortion and clear compatibility conditions can be defined. deleted Amendment 7 Proposal for a regulation Recital 11 (11)  In relation to aid for transport by rail, road and inland waterways, Article 93 of the Treaty states that aid meeting the needs of coordination of transport or representing reimbursement for the discharge of certain obligations inherent in the concept of a public service shall be compatible with the Treaties. Article 9 of 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 currently exempts from the prior notification requirement laid down in Article 108(3) of the Treaty public service compensations for the operation of public passenger transport services or for complying with tariff obligations that are established through general rules and paid in accordance with Regulation (EC) No 1370/2007. In order to harmonize the approach to block exemption regulations in the field of State aid, and in accordance with the procedures foreseen in Articles 108(4) and 109 of the Treaty, aid for the coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service as referred to in Article 93 of the Treaty should be brought under the scope of Regulation (EC) No 994/98. Article 9 of Regulation (EC) No 1370/2007 should be therefore be deleted with effect from six months after the entry into force of a regulation adopted by the Commission concerning this category of State aid. (11)  In relation to aid for transport by rail, road and inland waterways, Article 93 of the Treaty states that aid meeting the needs of coordination of transport or representing reimbursement for the discharge of certain obligations inherent in the concept of a public service shall be compatible with the Treaties. Amendment 8 Proposal for a regulation Recital 12 (12)  In the field of aid to broadband, the Commission has in recent years acquired vast experience and has devised guidelines In the Commission's experience, aid for certain types of broadband infrastructure does not give rise to any significant distortion and could benefit from a group exemption, provided that certain compatibility conditions are met. This is true of aid covering the provision of basic broadband in regions where there is no broadband infrastructure and where none is likely to be developed in the near future (‘white’ areas) as well as aid for small individual aid measures covering very high-speed next-generation access (’NGA’) networks in areas where there is no NGA infrastructure and where no such infrastructure is likely to be developed in the near future. It is also true of aid to broadband-related civil engineering works and passive broadband infrastructure, where the Commission has acquired substantial case experience and clear compatibility conditions can be defined. (12)  In the field of aid to broadband, the Commission has in recent years acquired vast experience and has devised guidelines In the Commission's experience, aid for certain types of broadband infrastructure does not give rise to any significant distortion and could benefit from a group exemption, provided that certain compatibility conditions are met. This is true of aid covering the provision of basic broadband in regions where there is no broadband infrastructure and where none is likely to be developed in the near future (‘white’ areas) as well as aid for small individual aid measures covering very high-speed next-generation access (’NGA’) networks in areas where there is no NGA infrastructure and where no such infrastructure is likely to be developed in the near future. It is also true of aid to broadband-related civil engineering works and passive broadband infrastructure, where the Commission has acquired substantial case experience and clear compatibility conditions can be defined. A block exemption for civil engineering works and broadband infrastructure should support investments, especially in rural areas and remote regions. Free-market access for operation of the infrastructure should be guaranteed as a condition for benefiting from the block exemption. Amendment 9 Proposal for a regulation Recital 13 (13)  Therefore, the scope of Regulation (EC) No 994/98 should be extended to include such categories of aid. (13)  Therefore, the scope of Regulation (EC) No 994/98 should be extended to include categories of aid hereby identified. Amendment 10 Proposal for a regulation Recital 14 (14)  Regulation (EC) No 994/98 requires the thresholds for each category of aid in respect of which the Commission adopts a block exemption regulation to be expressed either in terms of aid intensities in relation to a set of eligible costs or in terms of maximum aid amounts. This condition makes it difficult to block-exempt certain types of measures involving State support which, because of the specific way in which they are designed, cannot be expressed in terms of aid intensities or maximum amounts, e.g. financial engineering instruments or certain forms of measures aimed to promote risk capital investments. This is in particular due to the fact that such complex measures may involve aid at different levels (direct beneficiaries, intermediate beneficiaries, indirect beneficiaries). Given the increasing importance of such measures and their contribution to Union objectives, there should be more flexibility to make it possible to exempt such measures. It should therefore be possible to define the thresholds in terms of the maximum level of State support, whether it qualifies as State aid or not. (14)  Regulation (EC) No 994/98 requires the thresholds for each category of aid in respect of which the Commission adopts a block exemption regulation to be expressed either in terms of aid intensities in relation to a set of eligible costs or in terms of maximum aid amounts. This condition makes it difficult to block-exempt certain types of measures involving State support which, because of the specific way in which they are designed, cannot be expressed in terms of aid intensities or maximum amounts, e.g. financial engineering instruments or certain forms of measures aimed to promote risk capital investments. This is in particular due to the fact that such complex measures may involve aid at different levels (direct beneficiaries, intermediate beneficiaries, indirect beneficiaries). Given the increasing importance of such measures and their contribution to Union objectives, there should be more flexibility to make it possible to exempt such measures. It should therefore be possible to define the thresholds in terms of the maximum level of State support. Amendment 11 Proposal for a regulation Recital 15 a (new) (15a)  In order to ensure a level playing field in line with the internal market principles, the national aid schemes should guarantee an open and equal access to the State aid support for all the relevant actors of the market, in particular through the use of schemes or systems of aid rather than individual aid. Amendment 12 Proposal for a regulation Recital 15 b (new) (15b)  An efficient level playing field also requires the full and transparent application of national and Union public procurement legislation. Therefore, national authorities should comply with the applicable public procurement rules when designing State aid schemes or granting State aid support to be exempted on the basis of this Regulation. Amendment 13 Proposal for a regulation Recital 15 c (new) (15c)  The legal basis for this Regulation, Article 109 TFEU, provides only for consultation of the European Parliament, not for the ordinary legislative procedure in line with other areas of market integration and economic regulation further to the entry into force of the Lisbon Treaty. This democratic deficit cannot be tolerated in respect of proposals that concern the means of oversight by the Commission of decisions and acts by national and local elected authorities. This deficit should be corrected in any future Treaty change. The Commission’s Communication of 28 November 2012 entitled ‘A blueprint for a deep and genuine economic and monetary union’ foresees proposals for a Treaty change by 2014. Such a proposal should include a specific proposal amending Article 109 TFEU in order to adopt the regulations referred to in that Article in accordance with the ordinary legislative procedure. Amendment 14 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point ii (ii) research, development and innovation; (ii) research, development and innovation, in particular if in line with the Europe 2020 flagship initiatives and the Horizon 2020 policy objectives; Amendment 15 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point iii (iii) environmental protection; (iii) environmental protection, in particular if in line with the Europe 2020 flagship initiatives and the Union environmental policy objectives; Amendment 16 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point v a (new) (va) promotion of tourism, in particular if in line with the Union tourism policy objectives; Amendment 25 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point x (x) amateur sports; (x) amateur sports and youth development in sport; Amendment 17 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point xi (xi) residents of remote regions for transport, when this aid has a social character and is granted without discrimination related to the identity of the carrier; deleted Amendment 18 Proposal for a regulation Article 1 – point 1 Regulation (EC) No 994/98 Article 1 – paragraph 1 – point a – point xii (xii) coordination of transport or reimbursement for the discharge of certain obligations inherent in the concept of a public service pursuant to Article 93 of the Treaty; deleted Amendment 19 Proposal for a regulation Article 1 – point 2 Regulation (EC) No 994/98 Article 3 – paragraph 2 2.  On implementation of aid systems or individual aids granted outside any system, which have been exempted pursuant to such regulations, Member States shall forward to the Commission, with a view to publication on the Commission's website, summaries of the information regarding such systems of aid or such individual aids as are not covered by exempted aid systems. 2.  On implementation of aid systems or individual aids granted outside any system, which have been exempted pursuant to such regulations, Member States shall take into consideration the respect of public procurement rules, Europe 2020 and the environmental policies and objectives of the Union. Member States shall forward to the Commission, with a view to publication on the Commission's website, summaries of the information regarding such systems of aid or such individual aids as are not covered by exempted aid systems. Amendment 20 Proposal for a regulation Article 1 – point 2 a (new) Regulation (EC) No 994/98 Article 3 – paragraph 4 (2a)  Article 3(4) is replaced by the following: ‘4.  At least once a year, Member States shall supply the Commission with a report on the application of group exemptions, in accordance with the Commission's specific requirements, preferably in computerised form. The Commission shall make access to those reports available to the European Parliament and all the Member States. The Advisory Committee referred to in Article 7 shall examine and evaluate those reports once a year.‘ Amendment 21 Proposal for a regulation Article 1 – point 2 b (new) Regulation (EC) No 994/98 Article 5 (2b)  Article 5 is replaced by the following: ‘Article 5 Evaluation report Every two years the Commission shall submit a report to the European Parliament and to the Council on the application of this Regulation. The report shall, in particular, provide for a broad cost-benefit assessment of the group exemptions granted in accordance with this Regulation as well as an assessment of its contribution to the overall Europe 2020 flagship initiatives and the Horizon 2020 policy objectives. The Commission shall submit a draft report for consideration by the Advisory Committee referred to in Article 7. Every year the Commission shall submit to the European Parliament and to the Council the results of the monitoring exercise on the application of the group exemption regulations and publish on its website a summary report, including a clear overview of the levels and type of incompatible State aid granted by the Member States under the group exemption regulations.‘. Amendment 22 Proposal for a regulation Article 2 Regulation (EC) No 1370/2007 Article 9 Article 2 deleted Regulation (EC) No 1370/2007 is amended as follows: Article 9 shall be deleted with effect from six months after the entry into force of a Commission regulation concerning the category of State aid referred to in Article 1 (a) xii of Council Regulation (EC) No 994/98.

(1) OJ L 214, 9.8.2008, p. 3.