France: State aid in R&D to the livestock farming sector
On 16 April 2008, the French authorities notified the European Commission regarding their intention to implement a state aid scheme related to Research and Development in the agricultural sector.
The program is, according to the French authorities, designed to boost R&D in the livestock farming sector in order to improve the general level of sanitation and production technologies.
The aid will amount in total 9.6 million euros over six years. The annual budget will amount 1.6 million euros.
The European Commission gave the following assessment:
The program is aimed to help R&D in the sector of meat, meat products, milk products and egg-related products. Beneficiaries are all companies in the related sectors. The given state aid affects competition and trade since the companies benefit from a strengthened position related to foreign competitors. (par. 34 of the letter from the European Commission to France - Brussels, 27.10.2008 C(2008) 6306 [French])
The Commission concluded that the aid regime will not cause undue trade distortion and declared the aid compatible with art. 87 par. 3 c) of the Treaty. (par. 56 of the letter)
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date of inception: 1 Nov 2008
Duration: 63 months
GTA Evaluation: Red
the letter from the European Commission to France - Brussels, 27.10.2008 C(2008) 6306. Available from : < http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=... >