State aid law in public consultation, supervision by an independent authority
The government intends to transfer control of state aid to an independent authority, which will be established after amendments to the law "On State Aid", which have already been issued for public consultation. The report explains that the amendments aim to bring the domestic system closer to European Union standards.
According to the draft, "The State Aid Control Authority is a public body, independent in the performance of its duties."
The draft provides for the abolition of the State Aid Commission and the transfer of powers to a new structure organized with a Steering Council and Secretariat.
The Steering Council will consist of five members with a 5-year mandate, elected by the Assembly, while candidacies will be proposed by the President, the Council of Ministers, and the Assembly.
The draft law establishes new criteria for members, including a minimum of 10 years of professional experience and documented knowledge of European Union legislation on state aid.
The draft also requires a self-declaration of lack of leadership positions in political parties over the last five years, declaration of economic interests, and verification with the HIDACCI and tax authorities.
The document stipulates that members of the Council "may not exercise any other public or private function" that compromises their independence and impartiality.
One of the changes to the law relates to the imposition of administrative fines on companies that do not cooperate with the authority or provide incorrect information.
According to the draft, the Governing Council can impose fines of up to 1% of the total annual turnover of the enterprise or group of enterprises, in cases where entities provide "inaccurate or misleading information."
The draft law also provides for periodic fines of up to 5% of the average daily turnover for each day of delay in submitting the required information.
Fines will be considered an executive title and will be enforced according to the provisions of the Code of Civil Procedure.
The draft gives the authority the power to “order the recovery of unlawful and impermissible aid”, as well as to supervise the use and economic results of state aid. The draft also provides for a term for rescue aid that refers to an undertaking in difficulty, for a period of time during which a restructuring or liquidation plan must be prepared.
The draft law provides that the authority will be financed through a special item in the State Budget, while the Assembly will approve the tariff levels for its services.
The draft states that the state guarantees "sufficient human, financial and technical resources" for the functioning of the institution.
The changes also include strengthening rules on conflict of interest and a ban on former members representing private entities before the authority for a two-year period after leaving office.
The draft law also tasks the Governing Council to adopt guidelines for the implementation of the law “in accordance with the commitments made by the Republic of Albania in international agreements,” including the Treaty on the Functioning of the European Union.
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