State aid control to be strengthened with EU-funded twinning project
Strengthening the capacities of the Commission for Protection of Competition, harmonising Macedonia's relevant legislation with EU's, ensuring consistent implementation and raising public awareness on state aid and the need to control it, is the goal of a twinning project carried out by the Commission for Protection of Competition (CPC) and the United Kingdom’s Department of Business and Innovation and Skills (BIS), which was presented Wednesday in Skopje.
The European Union has provided funds in amount of one million euros for the project that will be implemented in a period of 18 months (April 2011 – September 2013).
EU Ambassador Aivo Orav said it was necessary to strengthen the capacities of CPC in monitoring state aid in a bid to protect competition.
"Amid the current global financial situation, it is great importance for national administrations to make more efforts in effective spending of public funds and encourage policies aiming at instigating growth, innovation and the creation of new jobs," Orav stated.
Graham Branton, the Director of the BIS Department, shared his opinion, saying that state aid in cretain cases was necessary, but it needed to be controlled.
"In order the situation on the market to be improved, state aid must be included which contributes to acquiring fresh investments. This refers to the financing of small enterprises in case of a financial crisis. European rules approve the use of state aid in all of these cases. To monitor means to point state aid in areas where it is needed the most," Branton said.
Vice PM for European Affairs, Teuta Arifi noted that the policy of protecting competition was a crucial aspect in the EU integration process of Macedonia. The Commission for Protection of Competition plays a key role in implementing the policy of protecting competition.
"Despite the breakthrough in this area, there is a necessity to further strengthen CPC's capacities, thus allowing consistent application of the Law on Control of State Aid. Activities envisaged by the project will enable a functional state aid monitoring, notification and control system in line with European standards and best practices in raising public awareness on the role and jurisdiction of the CPC in the area," Arifi stated.
The project is expected to result in a strengthened fully functioning State Aid monitoring, notification and control system in place within the CPC with enhanced capacity and awareness of state aid issues at the government and local levels.