European State Aid regulations place restrictions on the amount of public money that can be granted to private companies in order to uphold competition across the EU, and. They therefore have a major impact on local authority economic development and regeneration activities.
The Association monitors the impact of State Aid regulations on the ground and seeks reform in appropriate areas.
Local Authorities play a key role in economic development and regeneration across Wales. The WLGA welcomes the Commission’s publication of its road map for state aid reform 2005-2009 and its recognition that the State aid regime needs to be reformed. In addition, local government is a key stakeholder in the delivery of State aids and therefore welcomes the opportunity to respond to this consultation. Moreover, we will also be responding to the relevant elaboration of each concrete proposal when appropriate.
Overall, state aid regulations need to be far more proportionate, streamlined, and clearer across the whole EU. Uncertainties regarding the scope and application of regulations have acted as a major brake upon regeneration activity in deprived areas, and we fully support current proposals to devolve and simplify the current regulations.
Due to the fact that there are new challenges facing the enlarged European Union, the WLGA believes that any new state aids regime needs to be more aligned with the Lisbon Strategy and the Third Cohesion report, as state aid control plays an important role in the contribution of both these policies throughout Europe.
For more information contact: Lowri Gwilym