EC/Czech Republic Europe agreement: state aids and ECSC products

OBJECTIVE: to determine the position to be taken by the Community within the EU/Czech Republic Association Council with regard to the adoption of the necessary rules for the implementation of the provisions of the Europe Agreement concerning State aid (i.e. Article 64(1) and (2) of the Agreement). SUBSTANCE: the provisions concerning State aid form part of the fundamental provisions of the Europe Agreement between the Communities and the Czech Republic. Their implementation is necessary in order for trade between the 2 parties to develop smoothly. The proposal for a decision, which covers all aid granted by the State or through State resources which might affect trade between the European Community and the Czech Republic, lays down arrangements for cooperation between the two parties' monitoring authorities. According to Article 2(1) of the Decision of the Council and Commission of 19.12.1994 on the conclusion of the Europe Agreement, the position to be taken by the Community within the Association Council is to be laid down in accordance with the corresponding provisions of the Treaties establishing the three Communities. The Commission therefore proposes that Articles 113 and 228 of the EC Treaty, as well as Article 95 of the ECSC Treaty, are an appropriate legal basis for adopting the Community's position in the Association Council with regard to the implementing rules for State aids.