EU proposes major changes in disputes over State Aid
08 June 2005
The European Commission has proposed changes to the system of State aid which would change the present system and raise complex legal issues, EU/competition lawyers at LG believe.
Yesterday the Commission published a proposed five year action plan for State aid, which makes a number of changes to the existing system with the aim of targeting assistance on the least-developed regions and invites responses by mid-September, after which reforms will be announced.
Among the recommended changes is a move to shift the responsibility for hearing disputes over State aid from the Commission itself to national courts, with considerable legal ramifications.
“The EC wants to shift the burden back onto member states to provide increased discipline in the field of State aid. But this will change the way in which disputes have traditionally been heard and resolved,” said Anthony Woolich, EU and competition law partner at LG, a London-based corporate law firm. “As a result we would expect to see many more challenges of greater complexity.”
Shifting responsibility to national courts also raises complex legal issues, such as the procedural hurdles that a potential litigant would face in applying for injunctive relief or damages in the various EU jurisdictions, Mr Woolich believes.
For the full text of the Commission's proposed State Aid Action Plan click here
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Anthony Woolich
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