Description
In 2010 the European Commission initiated public consultation on the revision of the 2005 rules on public service compensation (the so called Altmark package). In December 2011 a new package of legislative and interpretative measures applicable to public service compensation was adopted by the Commission. The package consisted of a Decision, a Framework, a Communication and a draft SGEI de minimis regulation.
In addition to a simplification of the rules (e.g. a de minimis regulation for small size SGEI), the package brings further clarification of relevant concepts through the new Communication. The new Decision and Framework, which follow the diversified approach of the previous package, contain however some novel elements. The net avoided cost methodology, the method of calculating reasonable profit and the rules on the selection of providers are some of the new aspects which differ from the previous regulation.
Objectives
The purpose of this seminar is to examine in depth the interpretation and application of the Treaty provisions on SGEI, the case-law developed by EU Courts in this field and consider how the new rules in the Commission package are likely to be implemented and what challenges public authorities are likely to encounter in this respect. In addition, the seminar includes a session on sectoral studies and national experiences.
More specifically, the seminar will cover among others the following topics:
• Policy and legal developments in the field of SGEI;
• The interpretation of Article 106(2) TFEU and the relationship between state aid and SGEI;
• The manifest error test: case law and clarifications brought by the new Package;
• The methodology for ensuring the necessity and proportionality of state aid: the net avoided costs methodology and the cost allocation methodology,
• In depth analysis of the Altmark criteria, especially of the clarifications provided by the Communication regarding the 4th criterion;
• Application of the Altmark criteria in Commission cases and Court’s jurisprudence;
• The challenges in the application of the Commission Decision and Framework on public service compensation;
• Detailed analysis of the new SGEI de minimis regulation.
This two-day seminar aims to provide participants with a thorough understanding of the concept of SGEI and identify solutions to common problems and difficulties in managing SGEI. It will offer guidance to participants on how to design and implement measures in conformity with the new rules on public service compensation.
Method
A combination of presentations and case studies will be used. The lectures are given by EIPA experts, Commission officials and national representatives. Participants will be supplied with comprehensive documentation and relevant background materials.
Target Group
This seminar is intended for officials of public authorities and of European Institutions, as well as for professionals from the private sector dealing with state aid granted to providers of SGEI. Particularly, it would be of major interest to officials involved in the formulation of public service obligations, the award of contracts, the calculation of compensation and the notification of possible state aid to the European Commission.
Monday 23 April 2012
SESSION 1: GENERAL PRINCIPLES
Services of general economic interest (SGEI) in the EU law and institutional competences
Explanation of the purpose of Article 106(2) and its relation with other provisions on SGEI in the Treaty. Competences of the Commission and the Member States in the field of SGEI
Dr Phedon Nicolaides, Professor, EIPA, Maastricht (NL)
Definition of SGEI, services of general interest (SGI) and social services
Clarification of the main concepts used in the EU jurisprudence and Commission interpretative documents
Dr Ioana Eleonora Rusu, Research Assistant, EIPA, Maastricht (NL)
SESSION 2: THE 2011 SGEI PACKAGE: CONDITIONS FOR ENTRUSTMENT AND COMPENSATION
Background and objectives of the reform
Experience with the application of the 2005 Package, results of the public consultation, objectives of the reform
Dr Adinda Sinnaeve, Deputy Head of Unit, DG Competition, Brussels (BE)
The new Commission Decision for public service compensation
Description of the conditions under which state aid in the form of public service compensation is exempted from notification and explanation of the novel elements of the Decision
Adinda Sinnaeve
Lunch
The new Commission Framework for public service compensation
Description of the conditions under which state aid in the form of public service compensation can be authorised under the Framework and explanation of the novel elements of the Framework
Adinda Sinnaeve
The SGEI de minimis Regulation
Conditions for application of the new regulation, exclusions, relation to general de minimis. Obligations of Member States
Adinda Sinnaeve
Case law on the requirements for entrustment and methods of selection of providers
Analysis of cases on the proper entrustment for an SGEI and the new requirements of the 2011 Package. Overview of the possible methods of selection of providers and the relevance of public procurement rules
Ioana Eleonora Rusu
Reception
Tuesday 24 April 2012
SESSION 3: COMPENSATION FOR SGEI I: RELEVANT COSTS
Identifying and calculating relevant costs
Explanation on how to comply with the new compensation calculations: the net avoided cost methodology and the cost allocation methodology.
Phedon Nicolaides
COMPENSATION FOR SGEI II: REASONABLE PROFIT
Calculating reasonable profit
How to calculate risk, reasonable profit, rate of return on capital, internal rate of return and other benchmarks of profitability
Mr Enno Eilts, Senior Consultant, Oxera, Brussels (BE)
HOW TO DESIGN A COMPENSATION SCHEME WITHOUT STATE AID
Complying with the Altmark ruling: Review of Commission decisions where the Altmark criteria were met or not met and the new guidance from the Commission
Explanation of the clarifications of the Altmark criteria brought by the Package and implications for national authorities
Dr Mihalis Kekelekis, Senior Lecturer, EIPA, Maastricht (NL)
Lunch
SESSION 4: NATIONAL EXPERIENCES AND RECENT DEVELOPMENTS
The obligation to recover incompatible (excessive) public service compensation
Mr Achim Schroeder, Legal Counsel, Deutsche Post, Bonn (DE)
The housing sector in the Netherlands
The Commission control of manifest errors in the definition of social housing provided by a Member State
Prof. Dr Leigh Hancher, University of Tilburg and Counsel Allen & Overy Amsterdam (NL) (to be confirmed)
Evaluation and end of seminar
Programme
The programme will commence on Monday 23 April at 9.30 hrs and finish on Tuesday 24 April 2012 at 17.15 hrs.
Seminar venue
The seminar will take place at the European Institute of Public Administration, O.L. Vrouweplein 22, NL-6211 HE Maastricht, tel.: +31 43 32 96 222, fax: +31 43 32 96 296.
Working language
The seminar will be conducted in English.
Fee
The participation fee is € 875 and includes documentation, 2 lunches, 1 reception and refreshments.Participants will receive a copy of the new 2008 edition of our book “State Aid Policy in the European Community: Principles and Practice”, which is published in cooperation with Kluwer.Accommodation and travel costs are at the expense of the participants or their administration.
EIPA offers its members a reduction of 10% of the registration fee. For details, please click here.
Hotel reservations
The European Institute of Public Administration will be pleased to make reservations for you at a hotel in Maastricht. We have made a block booking at the following hotel:
Hotel Beaumont**** (www.beaumont.nl) at a rate of € 99,99 p.p.p.n. (incl. breakfast and tourist tax).
Should you wish to make use of this possibility, please indicate this and the dates of arrival and departure on the registration form. Payment is to be made directly and personally to the hotel on checking out. Please note that if you register after the closing date, hotel reservations cannot be guaranteed.
Meals
The lunches as well as the reception on Monday evening 23 April will be served at the Institute’s restaurant. Should you require a special menu (e.g. vegetarian, diabetic), please inform the Programme Organiser so that this can be arranged.
Registration
Kindly complete the online registration form before Monday 9 April 2012.
Please submit your application as soon as possible. Since our State Aid seminars and workshops tend to be fully booked well in advance of the registration deadline, EIPA operates a system of first-come, first-served.
Confirmation
Confirmation of registration will be forwarded to participants on receipt of the completed registration form.
Payment
Prior payment is a condition for participation. Please indicate the method of payment on the registration form. For cancellations received after the date indicated on the registration form we will have to charge an administration fee of € 150 unless a replacement participant is found.
Cancellation policy
EIPA reserves the right to cancel the seminar up to two weeks before the starting date. EIPA accepts no responsibility for any costs incurred (travel, hotel, etc.). For EIPA's cancellation policy, please visit our website.