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Community law, state aid and social services of general interest

Community law, state aid and social services of general interest. Bieke Comer For BFSE Milan 6/12/ 2011. Focus of the strand. Application of the State aid rules in social economy: Social Economy: Entreprise according to competition law Prohibition of State Aid!

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Community law, state aid and social services of general interest

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  1. Community law, state aid and social services of general interest Bieke Comer For BFSE Milan 6/12/ 2011

  2. Focus of the strand • Application of the State aid rules in social economy: • Social Economy: Entreprise according to competition law • Prohibition of State Aid! • Which exceptions are used in relation to ESF and Social economy?

  3. Exemptions on the state aid prohibition • General Block Exemption Rules (GBER) ex. Training, Disabled workers • De Minimis: no more than 200 000 euro within 3 years • Services of general economical interest (SGEI) or Social services of general interest (SSGI)

  4. Aim of the Strand • Examine how Member States apply state aid exemption rules in relation to SE • Examine the problems/ questions that rised in applying the state aid rules • Formulate recommendations to the Commission and the Member States

  5. 1. Examine how Member States apply state aid exemption rules in relation to SE • Workshops with and by the partners of the network • Study by an expert: Questionnaire and desk research

  6. 1. Examine how Member States apply state aid exemption rules in relation to SE Results So Far: • State Aid exemption rules are little known and little used • the main solution is the “de minimis” exemption and the GBER

  7. 2. Examine the problems/ questions that rised in applying the state aid rules • Not every MS is aware that State aid rules are applicable and the consequences of the state aid rules • Regulation is not clear and there is a lot of uncertainty on how to use the exemptions • Procedures are difficult and conditions are heavy for smaller projects • De minimis is a more popular solution, as it is flexible for ESF projects.

  8. 2. Examine the problems/ questions that rised in applying the state aid rules • De minimis is the most popular solution BUT • main condition: transparancy? • if more than 200 000 euro’s in 3 years: organisation can lose all state aid => High risque for the social entreprises that organise an ESF - project

  9. 3. Formulate reccommendations to the Commission and the Member States • To the Member state (ESF Authoroties)  When designing new ESF programmes, check on the State aid rules  GBER en SGEI can be good solutions for Social Economy  Get information about these regulations

  10. 3. Formulate reccommendations to the Commission and the Member States • To the EU: • Make procedures and regulations more flexible so it can be more adapted to ESF projects Ex.: For the notification on the base of GBER, managing authorities need a legal base, a call is not enough.

  11. 3. Formulate reccommendations to the Commission and the Member States • To the EU: Social entreprises are not the same as normal economical entreprises  State aid rules should take these differences more into account

  12. Next steps • Make our reccomendations more precise • More suggestions? More good practices? • New regulations on the social services of general interest are announced • Try to find out how they can be used in social economy

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