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SGEI Decision

 

 

 

 

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SGEI Decision

The new SGEI Decision exempts Member States from the obligation to notify public service compensation for certain SGEI categories to the Commission.  The main features are as follows:

  • The exemption allows unlimited spend in the area of social services. This used to just specify funding for social housing and hospitals. Now the Commission have extended this to include “clearly identified services, meeting social needs as regards health and long-term care, childcare, access to and reintegration into the labour market, the care and social inclusion of vulnerable groups.” 
  • For all other SGEI activity the compensation threshold has been lowered from €30 million to €15 million per annum. Any funding given above this threshold would have to be notified to the EC under the SGEI Framework.
  • The period of entrustment with an SGEI provider should be limited to 10 years.
  • Compensation for air and maritime links can be given where average annual traffic does not exceed 300,000 passengers.
  • Compensation to ports where average annual traffic does not exceed 300,000 passengers.
  • Compensation to airports where annual average traffic does not exceed 200,000 passengers.
  • Transparency - Any organisation receiving more than €15m of funding per annum which has commercial activities outwith the scope of the SGEI must publish details via the internet of the entrustment and the amounts of aid being granted to the undertaking on an annual basis.
  • Member States are required to submit a report on the implementation of this Decision every 2 years. The first report has to be submitted by 30 June 2014.

 

The full text of the SGEI Decision can be accessed here

 

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