Procedures and coordination

The European Commission is responsible for controlling State aid granted by EU Member States. As a rule, the Commission must be notified in advance of all aid schemes or individual aid that constitute State aid within the meaning of Article 107 of the Treaty on the Functioning of the European Union (TFEU).

The Commission examines whether the aid is compatible with the internal market, and authorities are only allowed to grant the aid after approval by the Commission. Aid that has been paid out without Commission authorisation is unlawful, and it may have to be recovered with interest from the undertakings that received the aid.

Based on the detailed rules it has issued, the Commission examines whether an aid scheme meets the general compatibility criteria set for all State aid and the specific criteria applied to the form of aid in question.

General compatibility criteria include the following:

contribution to an objective of common interest
need for State intervention
incentive effect of the aid
proportionality of the aid
avoidance of undue negative effects on competition and trade
transparency of the aid

The rules on State aid procedures are laid down in the Procedural Regulation (Council Regulation (EU) No 2015/1589). The Commission has also adopted an Implementing Regulation (Commission Regulation (EC) No 794/2004), which includes the forms to be used for State aid notifications.

In Finland, State aid notifications are submitted to the Commission via the Ministry of Economic Affairs and Employment (MEAE), except in matters falling within the administrative branch of the Ministry of Agriculture and Forestry. The MEAE also acts as the contact link between national authorities and the European Commission.

The MEAE assists in the interpretation of State aid rules, but each authority is responsible for assessing whether a measure constitutes State aid and for following the appropriate procedures.

Significant exemptions from the notification obligation

There are a few major exceptions to the prior notification procedure concerning State aid. A notification to the Commission and prior Commission authorisation are not mandatory, if the aid is covered by the General Block Exemption Regulation (651/2014, GBER) or constitutes de minimis aid under Regulation (EU) No 2023/2831.

Summary information about each aid measure under the GBER and de minimis Regulation must be submitted to the Commission within 20 working days after grating the aid. The Commission monitors compliance with the GBER by ex post control.

Summary information about each aid measure under the GBER must be submitted to the Commission via the MEAE within 20 working days after grating the aid. The Commission monitors compliance with the GBER by ex post control.

Advisory Committee on Business Subsidy

Under the Act on the General Requirements for Granting Support for Economic Activity (429/2016), the granting authority must, as a rule, request a statement from the Advisory Committee on Business Subsidy. A statement must be requested on whether the planned aid scheme or individual aid meets the characteristics of State aid set out in EU legislation, and on the procedure under State aid rules that the granting authority must comply with. A statement may also be requested on whether the aid meets the so-called good aid requirements specified in the act.

The Advisory Committee on Business Subsidy operates under the auspices of the Ministry of Economic Affairs and Employment.

Advisory Committee on Business Subsidy

Further information: elisa.fagerstrom(at)gov.fi and samuli.miettinen(at)gov.fi

National legislation

To transpose the provisions of the Procedural Regulation (Council Regulation (EU) No 2015/1589), Finland has adopted the Act on the Application of Certain State Aid Rules of the European Community (300/2001, available in Finnish and Swedish only). The Act lays down provisions on the recovery of aid, inspections to undertakings and the related executive assistance by the police. The Act also allows for issuing a decree on national arrangements concerning the aid notification procedure.

Act on the Application of Certain State Aid Rules of the European Community (300/2001) (in Finnish and Swedish)

The Government Decree on the aid notification procedure (89/2011, available in Finnish and Swedish only) includes detailed provisions on the procedure for notifying the Commission of aid schemes and individual aid as well as on exemptions from the notification procedure, such as the procedures for de minimis aid and aid covered by the General Block Exemption Regulation. The Decree also covers the submission of information related to the monitoring and control of State aid.

Government Decree on the aid notification procedure (89/2011) (in Finnish and Swedish)

The Act on the Obligation Concerning the Transparency and Information Dissemination of Economic Activities Binding on Certain Undertakings (19/2003, available in Finnish and Swedish only) concerns the Commission’s possibilities of supervising compliance with the EU competition and State aid rules in the Member States. Both public and private undertakings fall within the scope of the information dissemination requirement laid down in the Act. To be included in the scope, private undertakings must tend to public service tasks along with their own commercial activities (‘services of general economic interest’, Article 106(2) of the Treaty on the Functioning of the European Union).

The purpose of the Act is to provide the Commission with a tool for ensuring that no aid is channelled to public undertakings against State aid rules. The Act also ensures that the Commission is able to verify that the compensations paid for meeting public service obligations do not constitute aid for the undertakings’ other commercial activities. The Act is not applicable to e.g. undertakings whose annual turnover remains below EUR 40 million.

Act on the Obligation Concerning the Transparency and Information Dissemination of Economic Activities Binding on Certain Undertakings (19/2003) (in Finnish and Swedish)