State aids control in European Union is one of the key pillars on which the EU’s internal market has persisted until today. State aids which distort or threaten to distort competition between Member States are prohibited in general (Art. 107 (1) Treaty on Functioning of the European Union (TFEU)).
Exceptions to this general prohibition refer to possibilities of giving aid for horizontal purposes, achieving goals of common European interest, as well as to activities and services of common economic and public interest.
Due to the importance of transport, state aids in this sector have a special position in the EU acquis (Art. 93 of TFEU). Therefore, besides the possibility of using aids for horizontal goals, such as environment protection, research and development, regional development, reconstruction etc., there are special rules and conditions that apply to allowing aids in rail and road transport, internal waterways, airports, air and maritime transport. At the same time, the transport sector is also an important beneficiary of aids from the European structural funds.
Since the liberalization and introduction of market-based criteria, the possibilities of giving aids in this sector have been decreasing, making it divert towards the usage of horizontal aids. Furthermore, Member States have the possibility to co-finance transport services as services of general economic (public) interest or finance activities in this sector in line with the principle of a private investor.
Within the state aids reform in the EU (SAM), the whole array of principles governing their granting has been changed. This also concerns the transport sector, for example, airports and air transport. Besides, new activities that should bring about a change of conditions for granting aids in other transport branches have also been undertaken. There are further restrictions to be expected in the future regarding the possibility of use of specific state aids in the transport sector, which will consequently require proper preparations or even structural changes in the Croatian transport sector.
