STATE AID applied to European Territorial Cooperation programmes Madrid, 12 February 2009 The Portuguese case Presentation by Dina Ferreira, Vice-President of Financial Institute for Regional Development
Topics Territorial Cooperation in the Programme period 2007-2013 CTE Programmes with Portuguese participation State Aid Community Rules National Framework Incentive Systems in the NSRF Networks, Information and Knowledge State Aid in PT de Minimis Control Rules of the Structural Funds
European Territorial Cooperation in the period 2007-2013 2013 What is European Territorial Cooperation A learning from the unpredictable and endless value of the difference and the patient but agile art of consensus.
European Territorial Cooperation in the period 2007-2013 2013 What is European Territorial Cooperation Third pillar of the Policy of Cohesion One of the Objectives of the NSRF
European Territorial Cooperation in the period 2007-2013 2013 Guiding principles Operational Concentration Investment and Development Actions Selectiveness Economic Viability and Financial Sustainability of Investments Territorial Cohesion
CTE Programmes with Portuguese Participation Portugal Spain 2007-2013 Cross-border Cooperation OP Mediterranean Sea Basin 2007-2013 Cross-border Cooperation OP Atlantic Area 2007-2013 Transnational Cooperation OP Southwest European Area Transnational Cooperation OP (SUDOE 2007-2013) Mediterranean Area Transnational Cooperation OP (MED 2007-2013) Madeira-Açores-Canaries Area Transnational Cooperation OP (MAC 2007-2013) INTERREG IVC Inter-regional Cooperation OP INTERACT, URBACT and ESPON Inter-regional Cooperation Network OPs
Main Objectives for each OP CTE Programmes with Portuguese Participation Competitivity, cohesion, sustainable development Competitivity, cohesion, sustainable development, maritime heritage Competitivity, cohesion, sustainable development Competitivity, cohesion, entrepreneurship, innovation, accessibilities, sustainability marine environment Competitivity, innovation, environment, accessibilities, sustainability, accessibility urban development Growth and employment, Cohesion, environment, mobility polycentric development Competitivity, innovation, environment, sustainability, accessibilities urban development Innovation, economy based on knowledge, environment
CTE Programmes with Portuguese Participation Types of actions Studies Pilot Projects Interchange of Experience Networks Training and Information Infrastructures (P-E)
CTE Programmes with Portuguese Participation Final Beneficiaries - partners National, regional and local administrations Socio-professional organizations and business associations Research centres, universities, polytechnic institutes Associations, foundations and local and regional development agencies
Summary Chart CTE Programmes with Portuguese Participation Cross-Border A AG AC AA PT/ES ES PT ES ENPI IT IT IT Transnational B Atlantic Area PT PT PT SUDOE ES ES ES MAC ES PT ES MED FR FR FR Inter-regional C IV C FR FR FR INTERACT SK SK SK
CTE Programmes with Portuguese Participation Mission Executes regional development policy through the financial coordination of the community structural funds and of the Cohesion Fund.
CTE Programmes with Portuguese Participation Main responsabilities National financial coordination of the Structural Funds National coordination for operational monitoring and management of the ERDF and the Cohesion Fund Payment Authority//Certifying Authority Payment entity for ERDF and CF
Statutory Auditor Directive Council Support for Institutional Management Information Systems Financial Coordination Coordination of Operational Management Certification Control and Audit Legal Support and Litigation Financial and Asset Administration IS NSRF Programming and Financial Monitoring Support for Operational Management ERDF and Cohesion Fund Planning and Programming Internal Audit Communication Human Resources SIFEC Monitoring and Evaluation Territorial Cooperation and Community Initiatives Control of Expense Declarations Audit Technical Documentation Financial Management Internal IS Body Unit Group Temporary project team
State Aid EC EC RULES (DG (DG COMPETITION) STATE AID AID NATIONAL FRAMEWORK OF STATE AID IS R&DT IS INNOVATION IS QUALIFICATION SME EC RULES (DG REGIO) STRUCTURAL FUNDS
State Aid Community Rules Basic Principle State Aid is illegal (no.1 of Article 87 of the Treaty) Transfer of resources of the State Economic advantage Selectivity Effect on competition and commercial exchange between Member States
State Aid Community Rules COMPATIBILITY WITH THE COMMON MARKET (n.º 3 of Article 87 of the Treaty) This may be considered compatible with the common market: To promote the economic development of regions where the standard of living is unusually low ( ); To facilitate the development of certain economic activities or regions, when it does not alter the conditions of commercial exchange in a way that would be against the common interest; ( )
State Aid Community Rules CONTROL OF STATE AID (Article 88 of the Treaty) The Commission is responsible for the task of controlling state aid (in cooperation with the Member States). The Member States should inform the Commission in good time of any projects relating to the concession of State Aid ( obligation to notify ).
Community Rules State Aid Derogations allowed for by the DG Competition (Regulations) Aid for R&D&I Aid for SME Aid for Regional purposes de Minimis Rule Aid for Professional Training Aid in favour of the Environment Emergency aid and for the restructuring of companies Aid for Employment Risk Capital Measures Services of general economic interest Elements of aid related with the sale of public land and buildings
State Aid Community Rules SCOPE INCENTIVE EFFECT INCENTIVE EFFECT RESTRICTIONS MAXIMUM RATES OF SUPPORT MAXIMUM RATES OF SUPPORT LIMIT OF NOTIFICATION LIMIT OF NOTIFICATION
State Aid - Community Rules R&D&I SCOPE R&D Project : Fundamental research; Industrial research; Experimental development; Aid for consultancy services in innovation and for de innovation support services. ( )
State Aid - Community Rules R&D&I INCENTIVE EFFECT The EC considers that aid should increase the dimension, scope, amount or pace of R&D&I activity, and should be proven for : Aid for non-sme; Aid of over 7,5 million Euros for SME; For other projects, the EC considers that there is an incentive effect if the work starts after the presentation of a request for assistance.
State Aid - Community Rules R&D&I RESTRICTIONS Sectorial: Transports by rail, road or navigable routes. Emergency state aid and for the restructuring of companies in difficulty.
State Aid - Community Rules R&D&I MAXIMUM RATES OF SUPPORT FOR R&D&I PROJECTS MAXIMUM RATES OF SUPPORT FOR R&D&I PROJECTS BASE RATE INCREASES Fundamental Research: 100% -------- Industrial Research: 50% Experimental Development: 25% + 10 p.p Medium-sized Companies +20 p.p Small Companies + 15 p.p Cooperation or publishing of results
State Aid - Community Rules R&D&I COOPERATION BETWEEN RESEARCH COMPANIES AND ORGANISMS COOPERATION BETWEEN RESEARCH COMPANIES AND ORGANISMS There is no state aid if: The participating companies bear all of the costs of the project; Results which do not lead to Property Rights may be widely divulged and the research Organism holds all of the rights; The Organism receives a compensation equivalent to the market price for the property rights from the companies; When there is state aid: the contributions of the Organisms to this project may not exceed the intensities applicable to each company.
State Aid - Community Rules R&D&I LIMIT OF NOTIFICATION LIMIT OF NOTIFICATION 20 M for Fundamental Research projects; 10 M for Industrial Research projects; 7.5 M for Experimental Development projects.
State Aid - Community Rules R&D&I AID FOR CONSULTANCY SERVICES AID FOR CONSULTANCY SERVICES The Beneficiary is a SME; The aid does not exceed a maximum value of 200,000 Euros per beneficiary during a period of 3 years (this limit is independent of the limit established by the de Minimis rule ); The aid may not exceed 75% of the eligible costs if the providers are not certified; The beneficiary should use the aid to acquire the services at market prices.
State Aid - Community Rules Aid for regional purposes SCOPE To promote the development of less developed regions. Support for tangible assets (land, buildings and installations / machines) and intangible assets (transfer of technology through the acquisition of patents, licences, know-how or unprotected technical knowledge). In the case of Non-SME, costs with intangible assets are eligible up to a limit of 50% of the total of the eligible investment.
State Aid - Community Rules Aid for regional purposes INCENTIVE EFFECT INCENTIVE EFFECT The EC considers that there is an incentive effect if the work starts after the presentation of a request for aid and after the respective written confirmation of its eligibility resulting from a pre-evaluation. In the case of aid subject to individual notification, the promoter may not begin his project before the agreement of the EC.
State Aid - Community Rules Aid for regional purposes RESTRICTIONS Sectorial: Sector of the Fisheries, Aquaculture, shipbuilding, agriculture, coal, steelworks, synthetic fibres. Road Transports: Cannot receive aid for the acquisition of transport vehicles + The increase for SME does not apply. Aid granted to activities related with exports or which are intended to replace imports. Emergency state aid and for the restructuring of companies in difficulty.
State Aid Community Rules Norte MAP OF PORTUGUESE REGIONS Centro Lisboa Açores Alentejo Madeira Algarve 0 50km
State Aid - Community Rules Aid for regional purposes CHART OF REGIONAL AID CONVERGENCE REGIONS CHART OF REGIONAL AID CONVERGENCE REGIONS Region Centro / Alentejo Centro Norte/Centro/ Alentejo Açores Madeira 2007-2010 40% / 50% / 60% 36,5% / 46,5% / 56,5% 30% / 40% / 50% 52%/62%/72% 52%/62%/72% 2011-2013 30% / 40% / 50% 50%/60%/70% 40%/50%/60%
State Aid - Community Rules Aid for regional purposes CHART OF REGIONAL AID NON-CONVERGENCE REGIONS CHART OF REGIONAL AID NON-CONVERGENCE REGIONS Region Algarve 2007-2010 30% / 40% / 50% 2011-2013 20% / 30% / 40% Lisboa 15% / 25% / 35% Lisboa Lisboa 10% / 20% / 30% 0% / 0% / 0% 0% / 0% / 0%
State Aid - Community Rules Aid for regional purposes CHART OF REGIONAL AID REDUCTION IN LIMITS FOR LARGE PROJECTS CHART OF REGIONAL AID REDUCTION IN LIMITS FOR LARGE PROJECTS ELIGIBLE EXPENSES Up to 50 M The part between 50 M and 100 M The part above 100 M MAXIMUM ADJUSTED LIMIT OF AID 100% of the regional limit 50% of the regional limit 34% of the regional limit
State Aid - Community Rules Aid for regional purposes CHART OF REGIONAL AID REDUCTION IN LIMITS AFTER RISK CAPITAL CHART OF REGIONAL AID REDUCTION IN LIMITS AFTER RISK CAPITAL When the capital granted to a company (under the intervention of Risk Capital) is used to finance an investment project (IS Innovation or IS SME), the maximum limits are reduced by 20% (Assisted Regions Norte, Centro, Alentejo, Algarve and part of the Lisboa Region) or 50% (part of the Lisboa Region). This reduction will be applied for 3 years up to the limit of the intervention of Risk Capital.
State Aid - Community Rules Aid for regional purposes LIMIT OF NOTIFICATION LIMIT OF NOTIFICATION Support greater than aid which may receive support for an investment of 100 M for a given region: 37.5 M for projects in regions with a regional limit of 50%; 30.0 M for projects in regions with a regional limit of 40%; 22.5 M for projects in regions with a regional limit of 30%; 15.0 M for projects in regions with a regional limit of 20%; 11.25 M for projects in regions with a regional limit of 15%; 7.5 M for projects in regions with a regional limit of 10%;
State Aid - Community Rules Aid for regional purposes MECHANISM OF TRANSPARENCY MECHANISM OF TRANSPARENCY Large Projects (with an eligible investment of over 50 M ), which are not subject to notification, should be the object of ex-post information up to 20 working days after the concession of the aid.
State Aid - Community Rules Aid for SME SCOPE To promote the development of SME. Support for tangible assets (land, buildings and installations / machines) and intangible assets (transfer of technology through the acquisition of patents, licences, know-how or unprotected technical knowledge), as well as salary costs. This may also contemplate aid related with consultancy and the participation of SME in trade fairs. ( )
State Aid - Community Rules Aid for SME INCENTIVE EFFECT INCENTIVE EFFECT If the SME has presented a request for aid before starting the project. RESTRICTIONS Sectorial: Fisheries, aquaculture, shipbuilding, agriculture, steelworks, synthetic fibres. Aid granted to activities related with exports or which are intended to replace imports.
State Aid - Community Rules Aid for SME MAXIMUM RATE OF SUPPORT (Tangible and Intangible Assets) MAXIMUM RATE OF SUPPORT (Tangible and Intangible Assets) REGION Regions Assisted Other Regions LIMIT Chart of regional aid +15% Current Rates : 7.5% / 15% MAXIMUM RATE OF SUPPORT (Consultancy) MAXIMUM RATE OF SUPPORT (Consultancy) LIMIT 50%
State Aid - Community Rules Aid for SME LIMIT OF NOTIFICATION LIMIT OF NOTIFICATION 7.5 M per SME and per project. 2.5 M for consultancy expenses.
State Aid - Community Rules de Minimis Rules SCOPE It is assumed that small amounts of aid do not affect competition or trade between Member States. Limit of 200 000 Euros of aid for 3 tax years.
State Aid - Community Rules de Minimis Rules RESTRICTIONS Sectorial: Fisheries, aquaculture, agriculture, coal. Road Transports: May not receive aid for the acquisition of transport vehicles + Have a lower limit (100 000 Euros). Aid granted to activities related with exports or which is intended to replace imports.
State Aid Community Rules SUMMARY CHART THE COMMUNITY RULES SUMMARY CHART THE COMMUNITY RULES FRAMEWORK AREAS ENTERPRISES Aid for (R&D) No restrictions Some restrictions Regional Aid Assisted Areas No restrictions Aid for SME Some restrictions SME Minimis Rules No restrictions
State Aid National Framework SCOPE Defines the conditions and rules to be observed by the systems of incentives of the national territory for 2007-2013. The following do not apply: Tax Regimes; Employment; Professional Training; Agriculture / Fisheries.
State Aid National Framework NATURE OF THE ELIGIBLE PROJECTS Strategies of Collective Efficiency 1. R&D activities in companies; 2. Productive innovation : a) New goods or services; b) Expansion in sectors with a high technological content or with dynamic international demand; c) Process, organisational, marketing; d) Structural investments; e) Qualified entrepreneurship; 3. Development of dynamic factors of competitivity.
State Aid National Framework OTHER DEFINED PARAMETERS OTHER DEFINED PARAMETERS Sectorial scope; General conditions of eligibility of the promoter; General conditions of eligibility of the project; Eligibility of expenses; Criteria for the selection of projects; Maximum rates of support.
State Aid National Framework NSRF INCENTIVE SYSTEMS NSRF INCENTIVE SYSTEMS IS R&DT IS INNOVATION IS QUALIFICATION SME Factores de Competitividade Norte Centro Lisboa Alentejo Algarve
Incentive Systems In the NSRF IS R&DT (up to approval by the EC) IS R&DT (up to approval by the EC) EXPENSES COMMUNITY FRAMEWORK Expenses for Non-SME Expenses for SME de Minimis Aid Aid for SME (R&D)
Incentive Systems In the NSRF IS R&DT (after approval by the EC) IS R&DT (after approval by the EC) EXPENSES Protection of intellectual property for Non-SME Other Expenses COMMUNITY FRAMEWORK de Minimis Aid Aid for R&D&I
Incentive Systems In the NSRF IS INNOVATION IS INNOVATION EXPENSES Tangible Fixed Assets + Intangible Fixed Assets Other Expenses (consultancy) International Promotion + Protection of Property COMMUNITY FRAMEWORK Regional Aid (or Aid for SME or Minimis for Lisboa) SME: Aid for SME Non-SME: de Minimis Aid Minimis Aid
Incentive Systems In the NSRF IS QUALIFICATION AND INTERNATIONALIZATION OF SME S IS QUALIFICATION AND INTERNATIONALIZATION OF SME S EXPENSES Other Expenses (consultancy) Tangible Fixed Assets + Intangible Fixed Assets + Hiring of Technicians International Promotion + Protection of Property Acquisition of Consultancy (Simplified Project) COMMUNITY FRAMEWORK Aid for SME Regions Lisboa / Algarve + Transports Sector: de Minimis Aid Other Regions and Sectors: Aid for SME Minimis Aid Aid for R&D&I
Incentive Systems In the NSRF EXPENSES COMMUNITY FRAMEWORK Professional Training Aid for Professional Training
Incentive Systems In the NSRF MAXIMUM RATES OF SUPPORT PRODUCTIVE INVESTMENTS MAXIMUM RATES OF SUPPORT PRODUCTIVE INVESTMENTS TYPE OF INVESTMENT Innovation (including Struct. Projects, entrepreneurship and Strat. Projects) GENERAL APPLICATION 30% / 30% / 40% STRAT. COLL. EFFICIENCY 20% / 40% / 50% Other Investments --- 15% / 25% / 35%
Incentive Systems In the NSRF MAXIMUM RATES OF SUPPORT OTHER INVESTMENTS MAXIMUM RATES OF SUPPORT OTHER INVESTMENTS TYPE OF INVESTMENT GENERAL APPLICATION STRAT. COLL. EFFICIENCY R&D in companies Community Maxima Dynamic Factors of Competitivity 0% / 35% / 45% 0% / 40% / 50%
Incentive Systems In the NSRF Networks, Information and Knowledge 1. For implementation of the Public policies GUIDELINE PRINCIPLES 2. For enterprises 3. For Results 4. For the continuous improvement and enhancement of competences 5. For cooperation and functioning in a network
Incentive Networks, Information and Knowledge Systems In the NSRF INTERNET PORTAL Platform for Training Platform for Training Creation of swift mechanisms of communication between the points of e contact in the network. PO FC PO NORTE PO CENT. Creation of a common platform of knowledge. Conception and validation of documents and technical support tools for the operationalization of the IS throughout its life cycle. Identification of gaps in information and of competences to be filled through a specific Training Plan. IAPMEI AICEP AC TP PO ALG. PO ALEN. PO LISBOA
Incentive Systems In the NSRF Networks, Information and Knowledge One stop shop http://www.incentivos.qren.pt/ /
Networks, Information and Knowledge Incentive Systems In the NSRF On line SME certification http://www.iapmei.pt/
SA in PT de minimis Control Solution support for management decision making, providing accurate information on the accumulated amount of support granted to an entity in the relevant period of 3 years. IFDR
SA in PT de minimis Control Solution Creation of a central register, on a national level, of all the aid granted under the de minimis rule.
SA in PT de minimis Control Solution Information flows exclusively in digital format for greater speed in the control of accumulations of aid. Cliente Servidor de BD Ethernet Cliente Cliente Ficheiros de resposta Ficheiros XML Ficheiros Excel
SA in PT de minimis Control Benefits Endogenization of the rules inherent to the community policy on competition in terms of State Aid Greater safety in awarding new support Speed and reliability in the availability of information on de minimis support granted to an entity.
Rules of the Structural Funds EC RULES (DG REGIO) - STRUCTURAL FUNDS EC RULES (DG REGIO) - STRUCTURAL FUNDS FINANCING OF A PROJECT IN AN OP DOES NOT DISPENSE THE FULFILMENT OF COMPETITION RULES Confirmation ERDF Rate Support Concentrated in SME Relocation of Large Companies Investment Maintenance
Rules of the Structural Funds RULES SA - STRUCTURAL FUND RULES RULES SA - STRUCTURAL FUND RULES Each Management Authority is responsible for ensuring that the operations financed by the OP relating to State Aid respect the standards and procedures of community legislation in this matter. In relation to the Funds there are no longer specific rules for the maximum rates of financing of companies, having only to ensure that the maximum rates of aid set out in the competition rules (State Aid) are respected.
Rules of the Structural Funds CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE In terms of Structural Funds, the definition of Large Project refers to an operation with a total cost of over 50 M, or 25 M in the area of the environment. The financial participation of large projects is decided by the DG REGIO, within the period of three months after the transmission of the respective required information.
Rules of the Structural Funds CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE The large projects selected for financing will be presented by the Management Authority to the IFDR, which will submit them for the appreciation of the European Commission, via the information system of the European Commission SFC 2007. The monitoring of the process by the European Commission will be performed by the Management Authority, through the IFDR.
Rules of the Structural Funds CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE CONFIRMATION OF THE COMMUNITY CO-FINANCING RATE The information to be transmitted: Information on the nature of the investment, description thereof, financial amount and location; Results of the viability studies; Calendar for the execution of the project; Cost-benefit analysis; Environmental impact analysis; Justification of the public participation; Financing plan
Rules of the Structural Funds LIMIT OF SUPPORT TO NON-SME LIMIT OF SUPPORT TO NON-SME Support from the policy of cohesion within the direct support to productive investment, specifically through the ERDF, should be concentrated in SME. This objective was indicatively quantified in, at least, 60% of the total direct support granted to companies and will be monitored by the European Commission. Direct support is understood to be incentive systems (with the exception of IS R&DT) and the Innovation Risk Sharing measure.
Rules of the Structural Funds RELOCATION OF LARGE COMPANIES RELOCATION OF LARGE COMPANIES In the case of support to Large Companies, a guarantee should be requested from the company to ensure that the project is not in respect of the relocation of its production equipment or services from another Member State of the EU. MAINTENANCE The participation of the funds will only be definitively allocated to a project if in the period of 5 years (3 years for an SME), from the date of its conclusion, the project does not undergo any substantial alteration which may call the fulfilment of the objectives for which it was intended into question.
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