Efficient and transparent state aid system essential for fair competition and free trade, EU-funded project conference concludes

The EU-funded project ‘‘Establishment of State Aid System” saw its final conference on 28 September 2016 in Sarajevo. The project aimed at ensuring a competitive and transparent economic space, greater control of public spending and fulfilment of obligations deriving from international treaties containing provisions on state aid.

Mariangela Fittipaldi, Acting Head of Operations Section for Economic Development Infrastructure and Natural Resources at the EU Delegation to BiH underlined the significance of efficient regulation in the area of state aid. “Maintaining a system of free and undistorted competition is one of the foundations of the European Union. Regulation of the state aid is essential to ensure equal conditions on the internal market in all economic sectors in Europe”, Fittipaldi said, adding that the state aid allocation can affect the behaviour of enterprises as state aid recipients. “Free competition is an important driver of growth”, Fittipaldi said, concluding that “The European Union strongly supports BiH in its efforts to establish a functional state aid system and further encourages all project beneficiaries to now maintain knowledge and capacities, ensuring sustainability of project results in this important area.

Radmila Mihić, President of the BiH State Aid Council commended the efforts of all parties involved in the project. “This project is a perfect example of cooperation between the EU and BiH. The EU has recognised our needs and provided the necessary assistance to the state aid system”, Mihić said. Speaking about the future challenges Mihić finds monitoring of the state aid effects as the one to be improved.

Samir Sabljica, Member of the BiH State Aid Council and representative of the BiH Ministry of Foreign Trade and Economic Relations noted the project assisted BiH in fulfilling obligations deriving from the Stabilisation and Association Agreement and approximating its legislation with the EU. “Besides bringing us closer to EU standards, the project specifically assisted in introducing transparency in the state aid system. It helped us all in the system to understand that budget funds cannot be secret, but the information need to be available to the public”, Sabljica stated.

The conference was attended by representatives of relevant institutions from all government levels.

The EU funded this project in the amount of EUR 1,662,740 through the Instrument for Pre-accession Assistance (IPA 2012) which was implemented by GIZ. It supported the further implementation of the state aid legislation and the development of missing acts as well as the establishment of the functional state aid system. The training activities contributed to enhanced knowledge and skills of civil servants from all levels of government, benefiting the efficiency and operability of the system. The state aid system was also brought closer to the wider public thorough awareness raising activities.

Europa.ba