Saatja: "Kersti Kunder" <
[email protected]>
Saaja: "LIAA Invest" <
[email protected]>
Teema: FW: Inquiry Regarding the Application of EU Regulation 651/2014 and Harmonization of Requirements in the Baltic Region
Kuupäev: 2024-10-14 14:56
Dear Colleagues
Thank You for Your questions, what a great initiative to standardize
practices between member states!
I think we can have an open discussion here.
Our answers from Estonian Business and Innovation Agency (Enterprise
Estonia):
1. What financial information do you require from company groups to ensure
that they are not classified as "undertakings in difficulty"?- We use the
last approved annual report. Estonian companies provide their annual reports
to the Estonian Business register by 30 of June every year, and reports are
accessible to all: Search for a legal person | e-Äriregister (rik.ee)
<https://ariregister.rik.ee/eng>
However – if the company is in difficuties based on annual report, we ask
them to provide a more recent report which would show that they are not in
difficulties any more.
If there are foreign companies in the group, we ask applicant to provide
their last approved annual reports.
2. Do you assess related companies, such as other companies owned by the
parent company, using the parent company’s consolidated financial
statements, or do you require individual financial reports from each company
within the group?
– can be done both ways. At first we evaluate on the applicant level and
then on the group level. If we have consolidated data, then group level will
be evaluated on the basis of consolidated data. If the applicant does not
provide us consolidated data, then we take annual reports from Business
register or ask from applicant all the group members annual reports and
evaluate them separately.
We also assess all companies owned through natural person who has majority
stake in other companies (over 50% shares).
We do not consider partner companies (25-50% shares) to be part of the group
when determing undertakings in difficulties.
European Comission has explained:
As already set out in replies to earlier questions, the other criteria of
Article 2(18) for determining whether an undertaking is in difficulty need
to be assessed at both, the level of the legal entity applying for aid and
the level of the group to which such entity belongs. The assessment at the
level of the group should be carried out on the basis of consolidated
financial statements. If such consolidated financial statements are not
available it is possible to carry out a plausibility check of the financial
situation of the group on the basis of stand-alone financial statements of
the individual entities forming the group, by adding up these stand alone
financial statements. It is not necessary to assess separately individual
entities forming a group.
We don`t have regulation or rules written down in one document at the moment
unfortunately regarding UID. But we do use EC User guide to the SME
Definition.
I hope this is information is useful.
We have some questions about your practises regarding the size of the
company:
1. How you determine the number of employees – do you count members of the
management board, owners (shareholders), members of the supervisory board?
They are usually not counted in annual reports.
2. In case one natural person owns the majority shares in company A and also
in companies B and C – do you consider all these companies as linked
companies even if they do not operate on the same or adjacent markets?
3. If the majority of shares is owned by more individuals (acting jointly) –
do you consider the enterprises involved as linked if they operate on the
same or adjacent markets?
4. Do you count same family members acting jointly and having several
companies as single economic entity (a group)? T.ex. if individuals acting
jointly have same surnames, how do you determine they are relatives and
acting jointly?
5. When determing the size of the group, do you have some exceptions for
some group members? T.ex If an aid applicant (company) is part of a larger
group, but he has different field of activity and you don`t count this
applicant to group and he may be small enterprise although group is large
enterprise – is it possible?
Hope all of you find time to answer!
PS! Can we save your contacts in case we have further questions regarding
similar questions about UID and defining the size of the company?
Best regards
Kersti Kunder
Senior Consultant
Reporting and Information
Grant Centre
Estonian Business and Innovation Agency (Enterprise Estonia)
+372 5615 6549
+372 627 9748
[email protected] <mailto:
[email protected]>
Sepise 7, 11415 Tallinn
<http://www.eis.ee/> www.eis.ee
From: LIAA Invest <
[email protected] <mailto:
[email protected]> >
Sent: Friday, October 11, 2024 3:08 PM
To: Klienditeenindus <
[email protected]
<mailto:
[email protected]> >;
[email protected]
<mailto:
[email protected]> ;
<mailto:
[email protected]>
[email protected];
[email protected] <mailto:
[email protected]> ;
[email protected]
<mailto:
[email protected]>
Cc:
[email protected] <mailto:
[email protected]> ; <mailto:
[email protected]>
[email protected];
[email protected] <mailto:
[email protected]> ;
[email protected] <mailto:
[email protected]> ; Andris Blumbahs
<
[email protected] <mailto:
[email protected]> >; Eva
Kalniņa <
[email protected] <mailto:
[email protected]> >
Subject: Inquiry Regarding the Application of EU Regulation 651/2014 and
Harmonization of Requirements in the Baltic Region
Dear Colleagues,
I hope this message finds you well.
On behalf of the Investment and Development Agency of Latvia (LIAA), I would
like to inquire about the current practices regarding the financial
evaluation of company groups and partner enterprises in your country,
particularly concerning the application of EU Regulation 651/2014 on the
status of undertakings in difficulty.
We have identified that EU Member States interpret Commission Regulation
(EU) No 651/2014 of 17 June 2014 , which declares certain categories of aid
compatible with the internal market in accordance with Articles 107 and 108
of the Treaty, in different ways. The document relates to Article 18(2) of
the EEA Agreement. In particular, we are interested in understanding how
your country applies this regulation when evaluating large international
company groups whose subsidiaries apply for support.
<https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014R0651>
https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014R0651
To ensure a harmonized application of the regulation, we kindly request
clarification on the following:
1. What financial information do you require from company groups to ensure
that they are not classified as "undertakings in difficulty"?
2. Do you assess related companies, such as other companies owned by the
parent company, using the parent company’s consolidated financial
statements, or do you require individual financial reports from each company
within the group?
Additionally, we would appreciate if you could share any relevant materials
or guidelines outlining the evaluation principles used in your country.
Please feel free to send them in your local language if necessary, as we can
arrange for translation.
We look forward to receiving your response and learning more about the
approaches taken by your institutions in this area.
Eva Kalniņa
Projektu attīstības nodaļa
Investīciju projektu departaments
Pērses iela 2, Rīga, LV-1442
Mob. Tālr.: +371 26414932
<http://www.liaa.gov.lv/> liaa.gov.lv
latvia.eu
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