EC State aid rules: An analysis of the selectivity criterion

The application of Art. 87(1) EC to taxes above all is connected to the application of the derogation method, which appears to be part of the selectivity criterion. This dissertation examines the application of the derogation method and the assessment of the selectivity criterion applied to taxes, primarily de lege lata, but also de lege ferenda. It begins with an analysis of the relationship among the criteria of Article 87(1) EC and continues with an analysis of the relationship between the derogation method and the assessment of the selectivity criterion applied to taxes. Several scholars have criticized the application of the derogation method because of the difficulty of identifying a derogation and of establishing the benchmark against which the derogation should be assessed. In this dissertation both the benchmark and the establishment of a derogation is analyzed…


1 Introduction
1.1 The subject
1.2 The aim and relevant questions
1.3 The scope
1.4 Method and materials
1.4.1 Introduction
1.4.2 The State aid control system The long delay in reaching political
agreements The role of the Commission in the State aid system Value of policy frameworks Summary
1.4.3 Further remarks on method and material
1.4.4 The analysis in a norm-perspective
1.5 Relevant research
1.6 Structure
1.7 The reader
2 Article 87(1) EC – a general overview
2.1 Introduction
2.1.1 The effect principle
2.1.2 The market investor’s principle
2.2 The scope of Article 87(1) EC
2.2.1 Introduction
2.2.2 Transport
2.2.3 Agriculture and fisheries Agriculture Fisheries Summary
2.3 The donor
2.3.1 The concept of “Member State”
2.3.2 State resources
2.3.3 Summary
2.4 The aid measure
2.4.1 Introduction
2.4.2 Aid in any form whatsoever
2.4.3 Distortion of competition and intra-Community trade Introduction State aid – automatic distortion of competition? A trend towards better reasoned decisions?
2.4.4 The intra-Community trade criterion Introduction The intra-Community trade criterion treated together with the competition criterion The character of the market De minimis aid measures
2.4.5 Advantage
2.4.6 Summary
2.5 The recipient
2.5.1 Introduction
2.5.2 The character of the recipient or recipients
2.5.3 The selectivity criterion General measures All undertakings General geographic measures Equal access basis General measures with distorting effects on competition Specificity or selectivity Introduction Material selectivity Geographic selectivity Other forms of selectivity Selection Selective effect Ancillary effects
2.5.4 Summary
2.6 The relationships among the criteria of
Article 87(1) EC
2.6.1 Introduction
2.6.2 The relationships among advantage, selectivity,
and competition
2.6.3 The relationships among selectivity, competition, and intra-Community trade
2.6.4 Summary
2.7 State aid or public service compensation?
2.7.1 Introduction
2.7.2 Services of general interest
2.7.3 Services of general interest and State aid rules
2.8 Concluding remarks
3 Procedure, exemptions, and categorization
3.1 Introduction
3.2 Procedure
3.2.1 Introduction
3.2.2 The obligation to notify
3.2.3 The consequences of not notifying
3.2.4 The dilemma of the Member States
3.3 Article 87(1) – not an absolute prohibition
3.3.1 Introduction
3.3.2 Exemptions granted by the Commission Aid measures compatible with the common market de jure Article 87(2)(a) – Aid having socialcharacter Article 87(2)(b) – Aid to natural disasters Article 87(2)(c) – Aid to the economy
of certain areas of the Federal
Republic of Germany Discretionary derogations Introduction The discretionary powers of the
Commission Article 87(3)(a) – Aid to regions with
abnormally low standard of living or
serious unemployment Article 87(3)(b) – Aid to promote
important projects of common
European interest or to remedy
serious disturbance in the economy
of a Member State Article 87(3)(c) – Aid to facilitate the
development of a region or certain
economic activities Article 87(3)(d) – Aid to
promote culture and heritage
conservation The competition assessment in
Articles 87(3)(c) and (d) EC Various ways to categorise aid Exemptions elsewhere in the Treaty Introduction Aid to undertakings entrusted with
the operation of certain services Crisis in the balance of payment National defence
3.3.3 The Council’s authorisation of aid
3.4 Summary
4 The derogation metho
4.1 Introduction
4.2 The derogation method – a well tried method
4.2.1 Introduction
4.2.2 Derogations Introduction The characteristics of derogation A reduction in the tax base A total or partial reduction in the
amount of tax Deferment, cancellation, or special
rescheduling of tax debt 156 Derogations from taxes in general Introduction VAT Corporate income tax Social security charges Excise duties Personal income tax
4.3 A parallel analysis of derogations in the tax expenditure debate
4.3.1 Introduction
4.3.2 Norm elements in the tax expenditure debate Introduction The 1984 OECD report The McDaniel/Surrey report The Nordic Council of Ministers’
Report The 1996 OECD report Norm elements Provision referring to the
tax base Rate structure Definitions of taxable units liable
for the tax Accounting methods or accounting
conventions and timing Provisions relating to international
fiscal obligations Tax Administration
4.3.3 Norm elements – a method to establish derogations
according to Article 87(1) EC? Introduction Derogation from the tax base Derogation from the rate structure Derogation from accounting conventions
or timing Derogation from the rules on taxation
of foreign income
4.3.4 Concluding remarks
4.4 The necessity of the derogation method
4.4.1 Introduction
4.4.2 Criticism of the derogation method
4.4.3 Consequences of the derogation method that
blur the logic of the State aid rules 181 Introduction Regional taxes Special tax regimes
4.5 The relationship between the derogation method and the
selectivity criterion
Other Commission material
Other material
Subject Index

Author: Aldestam, Mona

Source: Uppsala University Library

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