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State aid - calculated investment or hidden corruption?

The Law on Control of State Aid is effective from 1 January 2010. System of awarding and control of state aid is in collision with some of the most important principles for the prevention of corruption or risks for corruption - legal certainty, violation of competition, management of public funds. Legal solutions were such that the law has not solved the major problems concerning the allocation of state aid in Serbia (absence of standards on control how the funds are allocated as state aid spending, limiting the concept of state aid to some its forms and lack of control of all forms of government assistance not covered by European regulations, the absence of preconditions for effective control), and with the introduction of significant confusion in the domestic legal system, particularly in relation to the institutional framework (unclear legal status of the Commission for state aid control). The aim of the project is to establish an effective mechanism of state aid control in line with European regulations, and determining the appropriateness of spending public funds that are allocated in the form of state aid. In particular, determine to what extent the observed prescribed norms concerning the registration and approval of state aid and comply with the relevant European standards, whether it is achieving the purpose for which the state aid has been granted. Transparency Serbia will advocate for amending regulations and practices in order to establish an effective mechanism for determining the appropriateness of spending public funds to be allocated in the form of state aid and respecting the norms concerning the registration and approval of state aid as well as to raise awareness among the public, especially in the media about the importance of the subject and instructing the media to monitor this area.

 

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