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State Aid

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What is State aid?

State aid is a highly technical area of EU law and has generated a wide range of evolving case law. Compliance with State aid rules is therefore an issue in any public intervention that involves State resources. State aid issues are usually quite complex, requiring a high level of expertise, in-depth knowledge and pragmatism.

The State aid legislation in Bulgaria is mainly contained in the State Aid Act, Ordinance No. H-10 on the Terms and Conditions for Notifying the Minister of Finance before granting new State aid; Ordinance No. H-4 on the Procedure for Coordination of Draft Documents under Art. 26, para. 1 of the European Structural and Investment Funds Management Act; Ordinance No. H-16 on the Procedure for Ensuring Transparency of Financial Relations between State Bodies and Local Self-Government Bodies and State and Municipal Enterprises and Financial Transparency within the Designated Enterprises; and the Rules of Procedure for the Implementation of the State Aid Act.

In Bulgaria, apart from the European Commission, the competent state aid authorities are the Minister of Finance and the Minister of Agriculture, Food and Forestry. The Minister of Finance is responsible for monitoring, transparency and coordination of State aid on national, regional and municipal level. The Minister of Agriculture and Forests - for aid schemes and individual aid in the field of agriculture and fisheries. They decide whether planned minimum aid and aid for certain categories are covered by block exemption regulations.

The concept services of general economic interest (SGEI) is recognized under Bulgarian law. In the provision of State aid, the national and local authorities are bound by the terms of Commission’s Decision of 20 December 2011 on the application of Article 106(2) of the TFEU to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (the same being notified under document C (2011) 9380. The provisions of the Decision have further found implementation in the Rules of Procedure for the Implementation of the State Aid Act, as one of the legislative acts that ought to be complied with in the provision of State aid.

CMS Lawyers: World-class State aid specialists

CMS has a dedicated team of legal specialists to advise on State aid-related matters. Our State aid specialist lawyers take a thorough approach to legal detail and can also stand back and take a wider view to deliver the best results.
Our experience covers all aspects of State aid:
•    fiscal incentives
•    rescue and restructuring aid
•    aid for infrastructures
•    services of general economic interest
•    regional aid
•    RDI aid
•    aid for environmental
•    aid for energy, etc. 

State Aid Law: Our Sevices

CMS lawyers represent both public authorities and private companies on all aspects of the State aid rules. This includes: 
•    Legal assessment of the existence of an aid and its compatibility 
•    Set up of aid schemes 
•    Assistance to public authorities in the notification of State aid 
•    Assistance to public authorities or beneficiaries in State aid investigations by the European Commission Drafting and lodging complaints before the European Commission 
•    Litigation before national and EU Courts 

CMS State aid specialists have particular expertise in following industry sectors: 
•    Air, maritime and rail transport sectors 
•    Energy 
•    Financial Services 
•    Postal sector 
•    Telecoms 
•    Multifunctional and sport infrastructure 
•    Manufacturing 

Well advised with CMS - nationally and internationally

The CMS State Aid Practice Area Group comprises 40 State aid law specialists practicing State aid law in 17 jurisdictions being located in 20 cities in Europe and beyond – all committed to assist you. 

Find your local contact person in our brochure CMS State Aid Group.

CMS State Aid Group
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The European Com­mis­sion State Aid Tem­por­ary Frame­work – a SEE per­spect­ive
State aid meas­ures that dis­tort com­pet­i­tion and trade with­in the European Uni­on are gen­er­ally pro­hib­ited un­der the Treaty on the Func­tion­ing of the European Uni­on. Still, the European Com­mis­sion has the...