Special Tax Zones And State Aid Rules New Perspectives For Eu Cohesion Policy

State aid rules do not usually offer sufficient space for territorial tax measures to address the social issues of the most disadvantaged areas of the EU.This article explores the coordinates of a new model of special tax zones that can overcome these limitations on the basis of the concept of social tax incentives through an investigation on the possibilities left by the Altmark criteria and Article 106(2) Treaty on the Functioning of the European Union (TFEU). The literature and other legal sources on the topic are analysed, including the main experiences of the Member States and the key aspects related to the 'social services of general interest'. The article concludes with the presentation of the so-called 'social cohesion zone' as a new instrument for the EU cohesion policy based on social tax incentives, in accordance with the fundamental values of the treaties and the constitutional traditions of Member States. The final recommendation consequently addresses the adoption of a soft law instrument that can give evidence of the social cohesion zone within the field of EU tax law.

Economic recovery from the global financial crisis of 2007–2008 has been sketchy, with some areas within the European Union (EU) still trapped in seemingly irremediable industrial stagnation and job loss. EU institutions are called upon to provide concrete amelioration for these situations, through the design and implementation of effective tax policies in accordance with the fundamental principles of EU law. In this original, innovative book, the author presents a new and expanded view of how special tax zones (STZs) – areas of land where territorial advantages are granted on direct and/or indirect taxation – can deliver growth and mitigate economic and social emergency. Recognizing that, although a number of STZs within the EU have been established, there is still no systematic framework for them in the EU legal system, the author works out a comprehensive theory for STZs in the field of European tax law, dealing incisively with the interface of STZs with such essential legal and tax aspects as the following: customs union provisions; benefits on direct and indirect taxation; State-aid rules; free movement of persons; harmful tax competition; and role of EU social cohesion policies and their implementation. Furthermore, the author develops a new model of STZs for the most disadvantaged areas of the EU – the so-called Social Cohesion Zone – to respond decisively to issues of compatibility with such critical variables of EU law as those dealing with the outer limits set by State-aid rules and fundamental freedoms, clearly demonstrating the model’s practical viability. Detailed reviews of Member States’ practice in existing STZs and their tax regimes are thoroughly described so different variables can be compared. As a comprehensive description of the state of knowledge about STZs, including the relevant background and their current place in EU law, this book has no precedents and no peers. It allows practitioners, policymakers, and academics in tax law to fully understand the relationship between EU law, national legislation, and STZs, focusing on the possibility of reconciling the tax sovereignty of Member States with a supporting and coordinating role of the EU institutions. It will be warmly welcomed by the tax law community.

New Perspectives on Fiscal State Aid Legitimacy and Effectiveness of Fiscal State Aid Control Edited by Carla De Pietro Based on a project co-funded by the European Commission, this book focuses on fiscal state aid – an increasingly important topic – with a number of high-profile cases ongoing and with serious implications for sustainable growth and the future of the internal market. The project, conducted by four universities, consisted in seminars, workshops and a final conference aimed at training national tax judges from the four different countries involved (Austria, Belgium, Italy and the Netherlands), with discussion and reflection by international academics and other tax professionals who participated as speakers and/or discussants. This book presents an in-depth analysis of the topics the project dealt with, taking a giant step towards defining the connection between effective state aid control, its legitimacy and a desirable functioning of the internal market for the twenty-first century. The core elements of this fundamental analysis include the following: selectivity as applied in the case law of the Court of Justice; whether and to what extent state aid law limits European Union (EU) Member States in designing anti-tax avoidance measures; protection of legitimate expectations; to what extent national judges are required to apply state aid rules ex officio; powers of national judges in connection with the national obligation of guaranteeing an immediate and effective recovery on the basis of an order issued by the European Commission; and connection between legitimacy of state aid law and effectiveness of state aid control. The book includes a thorough investigation of the notion of fiscal state aid, also by focusing on the most recent decisions of the European Commission concerning mismatches. Representing, as it does, an important and concrete contribution to the intense debate about the interpretation of the notion of fiscal state aid, with different normative views about the goals and functions of control, this book will stimulate solutions in terms of legitimacy of fiscal state aid control that also take into consideration the most desirable functioning of the internal market. It will be welcomed not only by academics in taxation and EU law but also by national tax judges, tax authorities and practitioners.

ÔErika Szyszczak and the team have come up trumps with a modern comment on state aid and policy. Thank you!Õ Ð Phillip Taylor MBE and Elizabeth Taylor, The Barrister Magazine ÔThis fine collection of essays demonstrates in a very articulate way why EU State aid law has taken the centre stage of EU law. In eighteen chapters the reader is provided with a fascinating snapshot of the main issues and developments of the law. The key elements of the EU policy are analysed in a critical way often leading to new insights. In addition the book contains a wealth of material greatly facilitating further research.Õ Ð Piet Jan Slot, University of Leiden, The Netherlands ÔEuropean state aid law needs more self-questioning and more intellectual debate. In my view, this Research Handbook is a very valuable contribution to this necessary process. It correctly identifies the most intellectually problematic issues within state aid law and asks the right questions. This may be due to the balance in the excellent selection of contributors, coming both from the academia and from practice. This guarantees, on the one hand, that the questions are relevant in practice and not purely theoretical but also provides, on the other hand, for a rigorous analytical approach when confronting the issues. The result is a fresh and interesting new look to many of the basic issues of state aid law.Õ Ð JosŽ Luis Buendia Sierra, Garrigues, Brussels, Belgium, and KingÕs College London, UK ÔThis Research Handbook provides an in-depth exploration of some of the most difficult and controversial issues in current State aid law and policy. It is unusual in providing not only a legal but also an economic and political science perspective on this rapidly developing area of EU law. The Handbook will be a welcome addition to the shelves of State aid practitioners and academics alike.Õ Ð Kelyn Bacon, Brick Court Chambers, London, UK This timely new Handbook reflects on current issues that confront State aid law and policy in the EU. State aid was a neglected area of competition law until attempts to modernise it became central to the Lisbon process 2000 where the aim was to encourage ÔintelligentÕ State aid by reducing aid to specific sectors and by making better use of aid for horizontal projects central to EU integration concerns. This policy framework has underpinned the new approach to State aid policy in the EU in recent years and informs many of the chapters in this book. Contributions from leading academics, regulators and practising lawyers, discuss topics devoted to modernisation, problems faced by recent enlargements of the EU, the role of State aid in the fiscal crisis and recession, the role of the private market investor test, regional aid, environmental aid and the review of the Altmark ruling. Perspectives on State aid law and policy from the disciplines of economics and political science are also explored in detail. Research Handbook on European State Aid Law will appeal to academics, regulators, national and EU government officials, practitioners and postgraduate students who are involved in State aid law.

Introduction - The Law and Economics of EU State Aid Control /Vincent Verouden and Philipp Werner --Advantage /Giuseppe Conte and James Kavanagh --State Measure /Rein Wesseling and Marieke Bredenoord-Spoek --Selectivity /Michael Honoré --Distortion of Competition and Effect on Trade /Jacques Derenne and Vincent Verouden --Compatibility of Aid - General Introduction /Leigh Hancher and Phedon Nicolaides --General Block Exemption Regulation /Koert van Buiren and Alexander Rose --Ex Post Evaluation of Aid /Xavier Boutin and Inkalotta Nuotio-Osazee --Research, Development and Innovation Aid /Pascal Belmin and Hans Zenger --Regional Aid /Hans W. Friederiszick and Massimo Merola --Risk Finance Aid /Isabel Taylor and Albert Bravo-Biosca --Rescue and Restructuring Aid /Ulrich Soltész and Bruce Lyons --Services of General Economic Interest /Philipp Werner and Vincent Verouden --Infrastructure Aid /Penelope Papandropoulos and Elisabetta Righini --State Aid in the Broadband Sector /Hein Hobbelen and Oliver Stehmann --State Aid in the Postal Services Sector /Alessandra Fratini and Khaled Diaw --Transport Aid /Udo Woll and Andrew Meaney --Energy and Environmental Aid /Kai Struckmann and Geza Sapi --Aid to Broadcasting, Culture and Sport /Christine Gerlach and Dimitrios Pikios --Aid in the Banking Sector /Stan Maes and Stephen Mavroghenis --State Aid and Privatisation /Andreas von Bonin and Elisabeth Häringer.

Tax competition in the form of harmful tax practices can distort trade and investment patterns, erode national tax bases and shift part of the tax burden onto less mobile tax bases. The Report emphasises that governments must intensify their cooperative actions to curb harmful tax practices.

This revised and updated Research Handbook on European State Aid Law brings together established academics and practitioners to provide a wide-ranging coverage of the field. Incorporating political science, economics and the law in its analysis, it provides a strong overview of the salient issues in State aid law and policy.

Why do the Member States of the European Union still grant aid and is that aid compatible with the objective of integration which should result in a better allocation of resources? The main purpose of this book is to explain the principles and methods of EC state aid policy in a manner which is both accessible and useful to practitioners and policy makers, by bringing together contributions from officials (both Community and national), industry representatives, and academics. In particular, it examines both theory on the role and objective of public assistance and current practice controlling such assistance. It addresses the issue of state aid from economic, legal and administrative perspectives and offers detailed information on current practice through case studies. It also considers likely future developments in the Community framework of state aid control. Finally, this book identifies major weaknesses in the present system of state aid rules, and paves the way for a proper economic analysis of the effects of forty years of state aid policy in the European Community.