20
Apr
2023
Watch
Cohesion dimension of EU state aid and de minimis rules (debate)
Madam President, Commissioner, rules such as the de minimis regulation are necessary to preserve the internal market. Limiting the aid that a government can give to its companies should help to avoid unequal competition between Member States. But when we look at the effect that this regulation has de minimis in the economies of the EU islands, we see a paradox: the limits set do not allow States to help island businesses offset the overcharge of insularity. It is very simple to understand what is the overcharge of insularity: an island-based company can only transport its goods by sea or air, which is an additional cost of around 70% compared to road or rail transport. Therefore, companies on the islands of the European Union have to compete within the internal market with a comparative disadvantage and the Regulation de minimis does not allow States to correct it with State aid. This is a dysfunction of the internal market. All companies compete on equal terms except those based on an island; the result is a widespread increase in product prices, a loss of competitiveness of our companies and the deindustrialisation of island economies. We Europeans living on the islands demand, as recognised in the European Parliament resolution of 7 June 2022, that the EU make it possible to compete on an equal footing. That is why we are asking for more flexibility in the Rules of Procedure. de minimis to enable States to compensate for these additional costs of insularity with State aid. We do not ask for a privilege, but for the correction of an inequality.