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EU: Draft state aid law dubbed ‘huge mess’

By  |  April 30, 2014

Lawyers are reportedly slamming draft proposals that would change the EU’s state aid rules as “a huge mess” that will likely render rules regarding renewable energy incoherent.

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    According to reports, some lawyers told reporters that the leaked proposals – the General Block Exemption Regulation – undermines some incentives intended to encourage energy efficient developments.

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    The outline was intended to clarify which circumstances that state aid could be used to fund small-scale renewable energy projects. The proposals were prepared by the EU’s Competition directorate.

    According to reports, the discrepancy lies in one area of the rules that offer exemptions of state aid prohibitions to energy-efficient projects, but other clauses contradict guidance on whether “competitive bidding procedures” should be utilized before such exemptions are given.

    According to ClientEarth law firm Maria Kleis, the proposals are a “huge mess” and the Commission should take out the seemingly contradictory language altogether.

    Full content: Euractiv

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