State Aid

Article 107 (1) of the Treaty on the Functioning of the European Union stipulates that “…any aid granted by a Member State or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, insofar as it affects trade between Member States, be incompatible with the internal market”.

Issues of state aid are coordinated by the Public Procurement and State Aid Department of the Ministry of Finance. Aid related to agriculture, forestry and fishery is processed by the Ministry of Agriculture. The Ministry of Economic Affairs and Communications is responsible for processing the aid granted in the transport sector.

The total amount of support granted to entrepreneurs from the resources of the state of Estonia in 2011 (state aid and de minimis aid in total) was 54,020.9 thousand euros, the majority of which (92.1%) was state aid. This comprised 0.11% of gross domestic product (GDP) whilst the EU average was 0.42%. Aid for agriculture, fisheries and transport comprised 0.21% of GDP whilst the EU average was 0.09%. The total amount of state aid granted was 51 million euros or 0.32% of GDP whilst the EU average was 0.5%.
The state aid and de minimis aid granted in 2010 totalled 46,446.9 thousand euros, 92.7% of which was state aid.

Information about the EU legislation, the resolutions of the European Commission et al. that regulate the area of state aid can be found on the website of the Directorate General for Competition of the European Commission.