NOTAT
8. December 2016
16/01843-61
HT.4691 The Danish government’s response to the Commissions sec-
ond consultation on the targeted review of the general block exemp-
tion regulation.
PRELIMINARY REMARKS
The Danish government supports and welcomes the inclusion of airports
and ports in the GBER. The Danish government, however, must once
again express our deep concern for the proposal in article 2, paragraph
61a to include in the GBER regional investment aid for the relocation of
undertakings and jobs from one Member State to another. In our view, the
Member States should not use state aid, i.e. tax payers’ money, to move
jobs around in the EEA. Thus the Danish government cannot support this
proposal.
AID FOR RELOCATION
The second draft of the GBER contains no alterations in respect to the
proposed definition in article 2, paragraph 61a of “closure of the same or
similar activity”. Only aid resulting in “substantial” job losses, i.e. losses
of at least 100 jobs in an establishment or a job reduction of at least 50%
of the workforce are to be notified to the Commission. In the Danish
Government’s view any job losses can in principle be “substantial.” It is
therefore our position that all aid which is granted for the purpose of relo-
cating jobs in the Union should undergo scrutiny of the Commission. We
are convinced that by maintaining this type of aid subject to notification,
it is possible to preserve the deterrent and preventive effect on undertak-
ings, given that they will have to provide detailed information to the
Commission, as well as await the approval of the Commission.
Including this type of very distortional aid in the GBER will eliminate the
deterrent of the notification process and Commission control, and lead to
unfair competition especially in countries where the workforce is mostly
engaged in SMEs.