EUKN - European Urban Knowledge Network - France and State Aid in Urban Development

France and State Aid in Urban Development

Introduction

This overview aims to present the French legal background and current developments in state aid and urban development.
Description

Description

State aid as it is handled in urban development in France (through legal instruments as the SEM, ZFU and SRU). The French public authorities use a range of methods to support urban development and regeneration through several means, including:

Fiscal exemption measures (ZFU);
Public investments;
Public-private partnerships through the creation of national or local public companies (SEM).

Since the French government has to respect European rules, these financial aids have to prove that they do not come under the heading of state aid as defined in the European competition rules (article 87 of the EU Treaty).

This publication adresses the following questions:

What French methods may conflict with European competition rules?
What means are used by the French authorities that conform to EU rules?

Conclusions

The French position on urban development and state aid is mainly based on existing European laws and procedures permitting state aid: Articles 86 and 87 of the EU Treaty on the one hand and other regulations such as de minimis aid on the other.
However, the French government is very keen for the European authorities to recognise urban development (aménagement du territoire) as a service in the public interest and thus for it to be exempted from conforming with the competition rules as set out in article 86.2 of the EU Treaty.
If the SRU law is not condemned by the European Commission, it can be considered a first step towards recognition of urban development as an activity in the public interest.

Contact info

Development Corporation City of Amsterdam
Jeroen den Uyl, tel. +31 655375457

Publication date

15/12/2003

Researcher

Lucie Godayer, Jeroen den Uyl

Links

Development Corporation City of Amsterdam Fédération des SEM

France and state aid in urban development (PDF, English, 1.2 MB)

Document type

research

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Business support