Moldova introduces new “compatibility test” for state aid
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State aides will be given a “compatibility test”

The compatibility with an adequate competitive environment and the effectiveness of state aid will be checked according to new rules. Since May, a new Instruction on the evaluation of state aid according to European standards has been in force in Moldova. The Competition Council draws the attention of providers and beneficiaries of state aid, whatever form it may take.
Irina Covalenco Reading time: 1 minute
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Competition Council

In Moldova, the regulatory framework and the supervision of the application of these standards are regulated by the Competition Council and sector-specific instructions. These instruments are designed to guide providers (ministries, agencies) to better allocate public finances.

The provisions of the new instrument apply to state aid schemes with an average annual budget exceeding the equivalent in MDL of 150 million euros, calculated at the official average exchange rate of the Moldovan leu set by the National Bank of Moldova for the year of state aid.

At the same time, the norms of the Instruction also apply to state aid schemes with new characteristics, to those implemented on markets where significant changes in the market structure, technological evolution or regulatory framework are expected, as well as to situations where the regulatory act of the Competition Council explicitly establishes the obligation of ex post evaluation.

“During the pre-notification phase, the Competition Council has the right to require an ex post facto assessment if it deems it appropriate. In this case, the competition authority shall inform the state aid provider of the need to conduct the assessment as soon as possible,” the departmental report specifies.

The instruction on state aid evaluation establishes a unified methodology, defining the principles, methods and stages of program analysis. The main purpose of this process is to make sure that state aid is effective, transparent and does not distort competition.



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