| Author (Corporate) | European Commission: Press and Communication Service |
|---|---|
| Series Title | Press Release |
| Series Details | IP/05/937 (15.7.05) |
| Publication Date | 15/07/2005 |
| Content Type | News |
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A package of measures providing greater legal certainty to the financing of services of general economic interest was adopted by the European Commission, 15 July 2005. The measures were to ensure that companies were able to receive public support to cover all costs incurred, including a reasonable profit, in carrying out public service tasks as defined and entrusted to them by public authorities, whilst ensuring that there was no over-compensation liable to distort competition. Member States would be able to grant compensation to small-scale public services, hospitals and social housing without notifying the Commission. The measures took the form of a Commission Decision, a Community Framework for state aid in the form of public service compensation and an amendment to the Commission Directive on financial transparency. These were the first implementing measures of the State Aid Action Plan (see IP/05/680). The measures were only to apply to undertakings conducting economic activities, as financial support granted to entities not conducting economic activities (e.g. basic compulsory social security schemes) does not constitute state aid anyway. |
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| Source Link | http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/937&format=HTML&aged=0&language=EN&guiLanguage=en |
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| Subject Categories | Internal Markets |
| Countries / Regions | Europe |
