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The search returned 4 results.

Incentive Effect of Subsidies: Empirical Research Presented journal article

Pieter Wesselius

European State Aid Law Quarterly, Volume 23 (2024), Issue 2, Page 143 - 150

Incentive effect is crucial in ensuring a proper allocation of State resources to undertakings and thereby achieving important policy objectives. However, it is uncertain to what extent undertakings applying for subsidies actually require the subsidy to initiate the project. This article presents empirical evidence on the incentive effect of research and development subsidies to small- and medium-sized enterprises in the Northern-Netherlands, along with recommendations to increase the incentive effect of subsidies. Whereas it currently is enough for an undertaking to simply refrain from initiating a project before applying for the subsidy, I advocate for the undertaking to have a more pro-active role: it should argue why the subsidy is necessary for the initiation of the project. Keywords: Incentive effect; General Block Exemptions Regulation; De minimis Regulation

The Art of Change Management – How To Deal with the Incentive Effect in Turbulent Times journal article

Stefan Akira Jarecki, Kamil Ciupak

European State Aid Law Quarterly, Volume 22 (2023), Issue 4, Page 389 - 403

The incentive effect is one of the most critical conditions for the compatibility of State aid with the EU internal market. The incentive effect means that State aid should not be granted for activities in which the beneficiary would, in any case, engage even in the absence of the State aid. If a beneficiary has decided to start a given activity receiving State aid under certain conditions, these conditions should not be changed - especially the amount of the State aid. However, we are living in turbulent times. Europe's economy was hit by the COVID pandemic outbreak, then by the war in Ukraine. All European countries have experienced a drastic price increase and are struggling with high inflation. The policy of the European Green Deal had led to drastic technological change. Many beneficiaries must buy energy and products from sources that were note initially planned. In this situation, the prohibition of changing the conditions of State aid that has already been granted may turn the incentive effect into the ‘disincentive effect’. In this article, we consider how this problem can be avoided. Keywords: incentive effect, GBER, de minimis

The ‘Effect on Trade between the Member States’ Criterion: Is It the Right Criterion by Which the Commission’s Workload Can Be Managed? journal article

Cees Dekker

European State Aid Law Quarterly, Volume 16 (2017), Issue 2, Page 154 - 163

On 29 April 2015, the European Commission decided on several notified measures, ruling that in none of those cases State aid was involved because, as the accompanying press release stated, they were unlikely to have a significant effect on trade between Member States. According to the press release, the decisions give additional guidance on how to determine which cases should be assessed by the Commission and which should not, to allow the Commission to focus on cases with a larger impact on the internal market. A couple of decisions in 2016 followed the same line of reasoning. This article discusses the question of how these decisions relate to the Court’s case law and the Commission’s own practice regarding the criterion ‘effect on trade between Member States’ laid down in Article 107(1) TFEU. It will also explore to what extent these decisions give actual clarity on the application of this criterion and if there is a better alternative to reduce the workload of the national authorities and the Commission. Keywords: Interstate Trade; De Minimis; Appreciable Effect; Notice on the Notion of State Aid.

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