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Financing Services of General Economic Interest

Part of the book series: Legal Issues of Services of General Interest ((LEGAL))

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Abstract

This chapter explores the complexities of the transport sector and the way it has been influenced by recent legislative developments on Services of General Economic Interest (SGEI). Starting on the different legal bases, the authors examine Article 93 TFEU which applies to land transport and Article 106 TFEU which applies to air and maritime transport. It is argued that Article 93 TFEU takes a more permissible view on State aid. Given the diversity of legal bases in the transport sector, the remainder of the chapter is divided between an initial discussion on the applicable rules and case law in land transport and, lastly, air and maritime transport. With regard to land transport, it is argued that while the Commission is restricted by Articles 93, 91 and 109 TFEU, there are indications that the Commission has started taking a more assertive role here. This part of the chapter focuses on the applicable secondary legislation, including the new de minimis Regulation which exempts small local transport undertakings from notification under certain circumstances. The last part of the chapter examines air and maritime transport with particular focus on the new SGEI Decision which has lowered the notification thresholds and this is felt particularly with regard to airports. The new SGEI Framework applies, other than the 2005 framework, to air and maritime transport. The possible effects of the new rules are assessed on the basis of available figures from the transport sector as well as Commission Decisions and case law.

The views expressed in this chapter are strictly personal to the authors, and can in no way engage the Institution they are working for.

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Notes

  1. 1.

    Article 58 (1) TFEU provides: ‘Freedom to provide services in the field of transport shall be governed by the provisions of the Title relating to transport’.

  2. 2.

    Standing case law since CJEU, Case 97/78 Schumalla [1978] ECR 2311, para 4.

  3. 3.

    ‘Land transport’ is commonly used as a short hand for transport by rail, road and inland waterway, as defined in Article 100 (1) TFEU.

  4. 4.

    OJ 1969 L 156/1 respectively 8. The former has been repealed by Regulation (EC) No. 1370/2007, the latter is still in force. See detailed discussion in Sect. 11.2.

  5. 5.

    Regulation (EC) No. 1370/2007 (land transport), Regulation (EC) No. 1008/2008 (air services) and Regulation (EC) No. 3577/92 (maritime services). These Regulations are discussed in more detail below.

  6. 6.

    CJEU, Case C-206/98 Belgium v Commission [2000] ECR I-3509, para 45.

  7. 7.

    CJEU Joined Cases 209- 214/84 Nouvelles Frontières [1986] ECR 1457, para 42.

  8. 8.

    Regulation EC 1370/2007 OJ 2007 L 315/1.

  9. 9.

    See the openings in State aid cases: C 58/2006 Verkehrsverbund Rhein-Ruhr, OJ 2006 C 74/18; C 16/2007, Postbus AG, OJ 2007 C 162/19; C 31/2007 Córas Iompair Éireann Bus Companies, OJ 2007 C 217/44; C 47/2007 Deutsche Bahn Regio, OJ 2008 C 35/13; C 54/07 Emsländische Eisenbahn GmbH, OJ 2008 C 174/13; C 3/2008 Bus transport CAS services, OJ 2008 C 43/19; C 17/2008 Bus transport in Usti Region, OJ 2008 C 187/14; C 41/2008 Danske Statsbaner, OJ 2008 C 309/14; the opening of the EFTA surveillance authority concerning bus transport in Oslo, nyr in the OJ, press release PR/12/18, following the annulment of a no objection decision by the EFTA Court in Case E-14/10 Konkurrenten.no AS v EFTA Surveillance Authority, EFTA Court Report 2011, p. 266.

  10. 10.

    Commission Decision 2009/845/EC of 26 November 2008 on State aid granted by Austria to the company Postbus in the Lienz district, OJ 2009 L 306/26; Commission Decision 2009/325/EC of 26 November 2008 on State aid concerning public service compensations for Southern Moravia Bus Companies, OJ 2009 L 97/14; Commission Decision 2011/3/EU of 24 February 2010 concerning public transport service contracts between the Danish Ministry of Transport and Danske Statsbaner, OJ 2011 L 7/1; Commission Decision 2011/501/EU of 23 February 2011 on Aid for the Bahnen der Stadt Monheim (BSM) and Rheinische Bahngesellschaft (RBM) companies in the Verkehrsverbund Rhein Ruhr, OJ 2011 L 210/1.

  11. 11.

    SA.33037, SIMET, nyr, see IP/12/518.

  12. 12.

    Commission Decision of 20 December on the application of Article 106(2) 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, OJ L7, C(2011) 9380, Article 2.4.

  13. 13.

    Recital 8.

  14. 14.

    See for example Skovgaard Oelykke 2008; Kekelekis and Rusu 2010; Maxian Rusche and Schmidt 2011; Schröder 2010; Polster 2009, 2010; Pünder 2010a, b, c; Schmitz and Winkelhüsener 2009; Nettesheim 2009; Linke 2010; Saxinger 2010a, b; Scheps and Otting 2008; Ziekow 2009; Olgemöller and Otting 2009; Schön 2009; Wittig and Schimanek 2008; Schröder 2008; Winnes 2009; Bayreuther 2009; Röbke and Rechten 2010; Deuster 2010, p. 591; Kramer 2010; Deuster 2009; Haats and Richter 2010; Hübner 2009; Tegner and Wachinger 2010; Stickler and Feske 2010; Jasper et al. 2008; Winnes et al. 2009; Kaufmann et al. 2010.

  15. 15.

    CJEU, Case C-324/98 Telaustria Verlags GmbH and Telefonadress GmbH v Telekom Austria AG [2000] ECR I-10745, para 60.

  16. 16.

    This is also supported by an e contrario with comparison to the 2012 SGEI Framework. The Framework applies ‘without prejudice to’ the requirements flowing from the Treaty or from sectoral Union legislation, which therefore do not constitute a condition for compatibility, but makes the compliance with Union public procurement rules a condition for compatibility (point 2.6).

  17. 17.

    2012 SGEI framework, recital 39–43.

  18. 18.

    Decision N 588/02, recital 47–49. Note, however, that the Commission concludes in this Decision that the measure at stake, the grant for long-distance coach services, does constitute a public service concession compatible on the basis of Article 93 TFEU.

  19. 19.

    The Commission has recently adopted a number of restructuring aid Decisions concerning regional bus undertakings in Poland; in this context, it has stated that the Polish legislation provides neither for exclusive rights nor for compensation payments; see Decision SA.34088, recital 5; SA.33042, recital 5; SA.32612, recital 5.

  20. 20.

    Commission Decision 2011/3/EU of 24 February 2010 concerning public transport service contracts between the Danish Ministry of Transport and Danske Statsbaner, OJ 2011 L 7/1.

  21. 21.

    Commission Decision 2011/501/EU of 23 February 2011 on Aid for the Bahnen der Stadt Monheim (BSM) and Rheinische Bahngesellschaft (RBM) companies in the Verkehrsverbund Rhein Ruhr, OJ 2011 L 210/1.

  22. 22.

    See the positions expressed by Denmark, Germany and the beneficiaries in the administrative procedure in the cases mentioned in the two previous footnotes.

  23. 23.

    See for example: Maxian Rusche and Schmidt (2011); Linke (2010); Saxinger (2009a, b).

  24. 24.

    GC, Case T 92/11 Andersen v Commission, notice of application published in OJ C 103/28. This application concerns Commission Decision 2011/3/EU of 24 February 2010 concerning public transport service contracts between the Danish Ministry of Transport and Danske Statsbaner, OJ 2011 L 7/1.

  25. 25.

    That is, aid that has been granted in violation of the stand still obligation of Article 108(3) TFEU, see Article 1 letter f of Regulation (EC) Nr. 659/1999 on laying down detailed rules for the application of Article 93 of the EC Treaty, OJ 1999 L 83/1.

  26. 26.

    CJEU, Joined Cases C-465/09 P -C-470/09 P Territorio Histórico de Vizcaya a.o. v Commission [2011] ECR-I 0000, paras 124–127. This has been recently confirmed in CJEU, Case C-167/11 De Poli v Commission [2012] ECR-I-0000, para 51.

  27. 27.

    Regulation (EC) 1192/1969, OJ 1969 L 156/8.

  28. 28.

    GC, Case T-351/02 Deutsche Bahn v Commission [2006] ECR II-1047, para 102.

  29. 29.

    CJEU, Case C-504/07 Antrop [2009] ECR I-3867.

  30. 30.

    This has been held by the Court for Regulation (EEC) No. 1191/1969, which contains comparable wording, see CJEU, Case C-504/07 Antrop [2009] ECR I-3867, paras 19 and 20.

  31. 31.

    GC, Case T-351/02 Deutsche Bahn v Commission [2006] ECR II-1047, para 102.

  32. 32.

    Press release from 20 December 2011: State aid: Commission adopts new rules on services of general economic interest, IP/11/1571.

  33. 33.

    Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, OJ 2006 L 379/5.

  34. 34.

    Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, OJ 2006 L 379, Article 6.

  35. 35.

    OJ 1998 L 142/1.

  36. 36.

    Commission Regulation (EC) No 69/2001, OJ 2001 L 10/30.

  37. 37.

    CJEU, Case C 280/00 Altmark [2003] ECR I-7727, para 80.

  38. 38.

    Article 2(1).

  39. 39.

    Articles 2 (2) and (3).

  40. 40.

    Article 4.

  41. 41.

    Article 3.

  42. 42.

    Articles 4 and 5.

  43. 43.

    Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, OJ 2009 L 379/5, Article 2(2).

  44. 44.

    Ibid, Article 2(4)(d).

  45. 45.

    See for example: CJEU, Case C-313/90 CIRFS v Commission [1993] ECR I-1177, para 36; CJEU, Case C-464/09 P Holland Malt v Commission [2010] ECR I-0000, para 47.

  46. 46.

    CJEU, Case 156/77 Commission v Belgium [1978] ECR 1881, para 10.

  47. 47.

    Commission Communication C(2008) 184, Community guidelines on State Aid for railway undertakings, OJ 2008 C 184/13.

  48. 48.

    Commission communication concerning State aid N 376/01—Aid scheme for cableways—Authorisation of State aid under Articles 87 and 88 of the EC Treaty, OJ 2002 C 172/2.

  49. 49.

    Ibid, recital 16.

  50. 50.

    Ibid, recital 18–28.

  51. 51.

    Ibid, recital 39.

  52. 52.

    OJ L 130/1.

  53. 53.

    CJEU, Case C-280/00 Altmark [2003] ECR I-7747, para 108.

  54. 54.

    Recital 37.

  55. 55.

    GC, Case T-357/02 RENV Freistaat Sachsen v Commission [2011] ECR II-0000, paras 43 and 44.

  56. 56.

    CJEU, Case C-504/07 Antrop [2009] ECR I-3867, para 28.

  57. 57.

    Article 100 TFEU.

  58. 58.

    CJEU, Joined Cases 209–213/84 Asjes [1986] ECR 1425, paras 39 and 42.

  59. 59.

    Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (notified under document C(2011) 9380), 2012/21/EU.

  60. 60.

    Article 3 of both the 2005 and the 2012 Decision.

  61. 61.

    Commission Decision 2005/842/EC, Article 2.1(a).

  62. 62.

    Ibid, Article 2.1(c).

  63. 63.

    Ibid, Article 2.1(d).

  64. 64.

    SGEI Decision, Article 3.

  65. 65.

    Ibid, Article 2.1(a).

  66. 66.

    Commission Decision C(2011) 9380 final, Article 2.1(d).

  67. 67.

    Ibid, Article 2.1(e).

  68. 68.

    Ibid, para 10 of the preamble.

  69. 69.

    Ibid, Article 2.2.

  70. 70.

    Commission Decision 2005/842/EC, Article 3.

  71. 71.

    Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community, OJ 2008 L 293/3.

  72. 72.

    Ibid, Article 16(1).

  73. 73.

    Ibid, Article 16(9).

  74. 74.

    Ibid, Article 16(10).

  75. 75.

    Ibid, Article 17(3).

  76. 76.

    Ibid, Article 17(7).

  77. 77.

    Commission staff working paper: The Application of EU State Aid rules on Services of General Economic Interest since 2005 and the Outcome of the Public Consultation. Brussels, 23.03.2011, SEC (2011) 397, pp. 11–12.

  78. 78.

    Ibid, p. 9.

  79. 79.

    Regulation EEC 3577/92, Article 4(1).

  80. 80.

    Ibid, Article 4(1).

  81. 81.

    CJEU, Case C-205/99 Asociación Profesional de Empresas Navieras de Líneas Regulares (Analir) and Others [2001] ECR I-1271, para 40.

  82. 82.

    Regulation EEC 3577/92, Article 4(2).

  83. 83.

    Ibid, Article 6.

  84. 84.

    Commission Decision 2012/21/EU, para 26 of the preamble.

  85. 85.

    Ibid, Article 2(3).

  86. 86.

    Das teure Sorgenkind der Landesregierung, MDR Thüringen, available at: http://www.mdr.de/thueringen/mitte-west-thueringen/hintergrundflughafen100.html.

  87. 87.

    Flughafen Erfurt erhält Zusatz “Weimar”, published 21/03/2011 http://www.airliners.de/management/marketing/flughafen-erfurt-erhaelt-zusatz-weimar/23685.

  88. 88.

    Bekanntmachung, 25/05/2012, Europäische Kommission: Staatliche Beihilfe SA.26500 (ex 227/2008)—Flughafen Altenburg-Nobitz—Beihilfe zugunsten von Ryanair (Beschwerde des Bundesverbandes der Deutschen Fluggesellschaften), (2012/C 149/02), p. 2.

  89. 89.

    Ryanair gibt Altenburg auf, published 07/01/2011, available at: http://www.airliners.de/verkehr/netzwerkplanung/ryanair-gibt-altenburg-auf/23041.

  90. 90.

    Flughafen Rostock-Laage mit Rekord-Passagierzahlen im Jahr 2010, Reisenews Online, 04/01/2011, available at http://www.reisenews-online.de/2011/01/04/flughafen-rostock-laage-mit-rekord-passagierzahlen-im-jahr-2010/

  91. 91.

    This one had not been notification-exempted and was assessed in Commission Decision 2009/948/EC, OJ 2008 L 346/1.

  92. 92.

    Press release: State aid: Commission opens in-depth investigation into potential State aid at Nîmes airport in France, 25/04/2012, IP/12/400.

  93. 93.

    Press release: State aid: Commission investigates potential state aid at La Rochelle airport in France, 08/02/2012, IP/12/108. For similar investigations see the following Press releases on State aid: Commission opens in-depth investigations in air transport sector in Germany and Austria, 22/02/2012, IP/12/156; Commission opens in-depth investigation in air transport sector in Belgium, France and Germany, 21/03/2012, IP/12/265; Commission investigates potential State aid at Carcassonne airport in France, 04/04/2012, IP/12/350; Commission opens in-depth investigations in air transport sector in France, Germany and Sweden, 25/01/2012, IP/12/44; Commission opens in-depth investigations in air transport sector in Belgium, France and Germany. 21/03/2012, IP/12/265.

  94. 94.

    Public consultation: State aid rules on services of general economic interest, Member States reports on the application of the SGEI package. Ireland: Report on the implementation of the Commission Decision of 28 November 2005, available at http://ec.europa.eu/competition/consultations/2010_sgei/reports.html.

  95. 95.

    Ibid, Sweden: Regeringskansliet, Rapport om genomförandet av kommissionens beslut av den 28 november 2005 om tillämpningen av artikel 86.2 i EG-fördraget på statligt stöd i form av ersättning för offentliga tjänster som beviljas vissa företag som fått i uppdrag att tillhandahålla tjänster av allmänt ekonomiskt intresse, p. 4.

  96. 96.

    Report on the implementation of the Commission Decision of 28 November 2005, comprising a detailed description of the conditions of application in all sectors, including the social housing and the hospital sectors, to be submitted to the Commission by each Member State every three years.

  97. 97.

    Press release: Commission authorises €18 million public financing for new ferry terminal in Lithuania, 22/02/2012, IP/12/155.

  98. 98.

    Supra at 110: Germany: Bericht der Bundesrepublik Deutschland zum, “Altmark-Paket” der Europäischen Kommission, p. 22.

  99. 99.

    Ibid, Sweden: Regeringskansliet, Rapport om genomförandet av kommissionens beslut av den 28 november 2005 om tillämpningen av artikel 86.2 i EG-fördraget på statligt stöd i form av ersättning för offentliga tjänster som beviljas vissa företag som fått i uppdrag att tillhandahålla tjänster av allmänt ekonomiskt intresse, p. 3.

  100. 100.

    Ibid, France, Rapport sur les compensations de services d’intérêt économique général : mise en œuvre de la décision de la Commission européenne du 28 novembre 2005.

  101. 101.

    Ibid, UK: Letter to the State Aid Greffe, 18 February 2009.

  102. 102.

    Ibid, Romania: Department for reporting, monitoring and control of State aid, Raport privind ser viciile de interes economic general din Romania, pp 20–25.

  103. 103.

    Ibid, Annex 15.

  104. 104.

    Ibid and see: Stadt Plauen will Zuschuss kürzen, Studio Franken, published 23/05/2012, available at: http://www.br.de/franken/inhalt/aktuelles-aus-franken/flughafen-hof-cirrus100.html

  105. 105.

    http://www.airport-hof-plauen.de/

  106. 106.

    Hanel (2012).

  107. 107.

    Europe loses four airlines in an unhappy start to 2012, Centre for Aviation, published on 31/01/2012, available at http://www.centreforaviation.com/analysis/europe-loses-four-airlines-in-an-unhappy-start-to-2012-67001.

  108. 108.

    Commission staff working paper: The Application of EU State Aid rules on Services of General Economic Interest since 2005 and the Outcome of the Public Consultation. Brussels, 23.03.2011, SEC(2011) 397, pp 33–35.

  109. 109.

    Communication from the Commission: European Union framework for State aid in the form of public service compensation (2011), OJ 2012 C 08/3.

  110. 110.

    2012 SGEI Framework, paras 7 and 8.

  111. 111.

    2012 SGEI Framework, para 67.

  112. 112.

    2012 SGEI Decision, Article 2 (4).

  113. 113.

    SGEI Framework, recital 10.

  114. 114.

    OJ 1994 C 350/5.

  115. 115.

    Communication from the Commission, Community guidelines on financing of airports and start-up aid to airlines departing from regional airports, 2005/C 312/01.

  116. 116.

    Communication from the Commission, 2005/C 312/01, para 34.

  117. 117.

    Ibid, para 36.

  118. 118.

    Ibid, para 37.

  119. 119.

    Ibid, para 15.

  120. 120.

    Ibid, para 39.

  121. 121.

    Ibid, para 41.

  122. 122.

    C 79/2002, Commission Decision 2005/351/EC, OJ 2005 L 110/56.

  123. 123.

    Commission staff working paper: The Application of EU State Aid rules on Services of General Economic Interest since 2005 and the Outcome of the Public Consultation. Brussels, 23.03.2011, SEC(2011) 397, pp 11–12.

  124. 124.

    GC, Joined Cases, T-265/04, T-292/04, T-504/04, Tirerenia di Navigazione v Commission [2009] ECR II-21.

  125. 125.

    GC Case T-565/08, Corsica Ferries France v Commission [2005] ECR II-2197.

  126. 126.

    Commission Decision 2004/166/EC on aid which France intends to grant for the restructuring of the Société Nationale Maritime Corse-Méditerranée (SNCM), OJ 2004 L 61/13.

  127. 127.

    Community Guidelines on State aid for rescuing and restructuring firms in difficulty, OJ 1999 C 288/2, applicable from 9 October 1999.

  128. 128.

    GC, Case T-17/02, Fred Olsen [2005] ECR II-2031. This judgment has been confirmed on appeal:C-320/05 P Fred Olsen [2007] ECR I-131.

  129. 129.

    Case N 62/2005, contrat de service public sur une ligne maritime Frioul-Vénétie-Juliennes et Slovénie et Croatie, OJ 2007 C 90/10.

  130. 130.

    Case N 265/2006, Aide au transport maritime-Società Ustica Lines e Società N.G.I. OJ 2007 C 196/3.

  131. 131.

    Commission Decision 2011/98/EC OJ 2011 L 45/33.

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Authors and Affiliations

  1. European Commission, Legal Service, BERL 2/82, 1049, Brussels, Belgium

    Tim Maxian Rusche

  2. Clifford Chance LLP, 10 Upper Bank Street, London, E145JJ, UK

    Silvia Schmidt

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  1. Tim Maxian Rusche
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  2. Silvia Schmidt
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Correspondence to Tim Maxian Rusche or Silvia Schmidt .

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Editors and Affiliations

  1. , School of Law, University of Leicester, University Road, Leicester, LE1 7RH, United Kingdom

    Erika Szyszczak

  2. , Faculty of Law, Radboud University, Comeniuslaan 4, Nijmegen, 6525 HP, Netherlands

    Johan Willem van de Gronden

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© 2013 T.M.C. Asser Press, the Hague, the Netherland, and the authors

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Maxian Rusche, T., Schmidt, S. (2013). Transport. In: Szyszczak, E., van de Gronden, J. (eds) Financing Services of General Economic Interest. Legal Issues of Services of General Interest. T.M.C. Asser Press, The Hague, The Netherlands. https://doi.org/10.1007/978-90-6704-906-1_11

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