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SW-Version alpha 0.41
Darstellung: System
Sprache: DE

State Aid – Overview and Initial Situation

Source: Dispatch of the Federal Council on the Bilateral III package, Chapter 2.2.1–2.2.4 (pp. 144–150)
PDF of the Dispatch

Summary

The state aid provisions in the Switzerland–EU package concern only three internal market agreements: the Air Transport Agreement (ATA), the Land Transport Agreement (LTA) and the future Electricity Agreement. They ensure that state aid does not distort competition between Swiss and EU undertakings in these areas. The system follows a two-pillar approach: Switzerland monitors with its own authority (aid chamber within COMCO), the EU with its existing system. Public service, the agricultural sector, cultural promotion and numerous other areas remain expressly excluded.

Scope

Aid monitoring covers exclusively aid falling within the scope of the three agreements concerned. Not covered are in particular:

  • Public service (public transport, universal service)
  • Agricultural sector and direct payments to farmers
  • Cultural promotion and film support
  • Investment aid for mountain regions
  • Compensation by the Confederation for services in the general interest
  • Regional policy measures (NRP)
  • Education and research (insofar as not within the scope)

This clear delineation was a central negotiation objective of Switzerland and was fully achieved.

Two-pillar approach

The monitoring system is based on the principle of institutional autonomy of both parties:

Pillar Jurisdiction Monitoring authority
Swiss pillar Aid on Swiss territory COMCO (aid chamber)
EU pillar Aid in EU Member States European Commission

Switzerland does not have to accept any supranational court. Disputes are resolved through the existing dispute settlement mechanisms of the respective agreements.

COMCO as monitoring authority

The Competition Commission (COMCO) receives a new aid chamber with the following features:

  • Independence: authority free from directives, analogous to the existing COMCO structure
  • Composition: specialised members with aid expertise
  • Cantonal involvement: the cantons are involved in preparing the election of the 2 aid chamber members
  • Procedure: own examination procedure (notification, simple examination, in-depth examination)
  • Opinions: non-binding opinions (no binding decisions as in the EU)

Consultation

The consultation showed broad approval of the chosen approach:

  • The majority welcomed the autonomous monitoring system
  • Broad support for COMCO’s competence as a proven institution
  • The cantons approved the approach in principle but requested greater involvement
  • Business supported the strict limitation of the scope
  • Critical voices mainly concerned implementation details, not the basic concept

Transitional period

A generous transitional period applies to the introduction of aid monitoring:

  • 5 years after entry into force of the aid protocols
  • During this period: establishment of the aid chamber, training, adoption of implementing provisions
  • Existing aid is recorded and assessed during this period

Key points

Aspect Details
Agreements concerned ATA, LTA, Electricity Agreement (only 3 out of ~20 agreements)
Monitoring model Two-pillar approach (CH/EU each autonomous)
CH authority Aid chamber within COMCO
Scope Strictly limited to the 3 agreements
Public service Expressly NOT affected
Agricultural sector Expressly NOT affected
Transitional period 5 years after entry into force
Consultation Broad approval
Negotiation objective Fully achieved

References