Annexes to COM(2005)107 - State aid action plan - Less and better targeted state aid : a roadmap for state aid reform 2005-2009 (Consultation document)

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annexed to the Treaty of Amsterdam, and reflects the specific public interests attached to these activities. In that respect, it will revisit its Communication on the application of state aid rules to public service broadcasting. Notably with the development of new digital technologies and of Internet-based services, new issues have arisen regarding the scope of public service broadcasting activities. It will also consider reviewing the Communication on certain legal aspects relating to cinematographic and other audiovisual works (cinema communication) . In addition, and on the basis of its experience in this field, the Commission could ask the Council to extend the scope of the Enabling Regulation, so that cinema can also benefit from a block exemption .

63. In addition, the Commission will engage in a broader thinking about the ways in which state aid is given to undertakings. Some aid measures are more transparent than others; some are more directly targeted towards precise objectives. This raises questions about the effectiveness and distortive effects of different forms of aid. Therefore, the Commission will issue a consultation document on the aid element in different forms of aid , in order to collect the view of member states and of undertakings. The consultation could indicate whether the Commission should systematically be stricter towards certain forms of aid than towards others.

64. To complement that general reflection, the Commission will revisit its Notice on state aid in the form of guarantees to incorporate its experience and assess whether the current rules and criteria should be amended. In the same context, the Commission will consider revising its Notice on the application of the state aid rules to measures relating to direct business taxation published in 1998, in particular to examine whether it should be extended to indirect taxation.

65. Finally, the Commission will decide whether a Framework for state aid to shipbuilding is still needed or if the sector should simply be governed by horizontal rules.

66. Following agreement on a new Council regulation on rural development, expected for June 2005, the Commission will undertake a review of the existing specific measures for state aid in the agricultural sector . Draft proposals will be presented in time to allow for formal adoption in 2006 and application from 1 January 2007 onwards.

III.5 Establishing and evaluating the new practice for the future

67. After having finalised the comprehensive review of State aid, the Commission will conduct an evaluation exercise, in order to make sure that the new rules and practice of state aid policy work properly for the benefit of European citizens. If necessary, new actions will be proposed.

68. Figure 1 gives an overview of the road map 2005-2009 with an indicative division in three stages.

Figure 1: Roadmap 2005 -2009 ( indicative )

Modifications | 2005/2006 | 2007/2008 | 2009 |

Substance | Road map for state aid reform 2005-2009 Regional aid guidelines General Block Exemption (SME, employment, training, R&D, de minimis, regional, environment) Communication interest rates Guidelines R&D and Innovation Communication short term credit insurance Communication risk capital Decision and guidelines on the Services of General Economic Interest and transparency directive Guidelines environment Framework on State aid to Shipbuilding | Assessment/modification of the rescue and restructuring aid guidelines. Notice on state aid in form of guarantees Communication on direct business taxation Communication on state aid to public broadcasting. Possible additional block exemptions | Assessment of the reform and review of existing state aid rules |

Consultation documents | Communication on innovation | Consultation document on possible modification of Council Regulation (EC) No 659/99. Consultation document on the different forms of aid |

Procedure | Internal best practices guidelines Promotion of state aid advocacy. Increase monitoring of decisions and recovery Possible proposal for amendment of the Council Regulation (EC) No 994/98 (enabling regulation) | Possible proposal for amendment of Council Regulation (EC) No 659/99 (procedural Regulation) Notice on cooperation between national courts and the Commission in the state aid field |

69. Figure 2 gives an overview of the expected major changes to the architecture of State aid rules.

Figure 2: EXPECTED MAJOR CHANGES TO THE ARCHITECTURE

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