• Overview of the State Aid Law and Secondary Legal Acts
  • August 5, 2014
  • Law Firm: Turcan Cazac Law Firm - Chisinau Office
  • On 7 June 2012, after months of debates, the Parliament of the Republic of Moldova adopted the Law on State Aid (the "Law") as a result of the external commitments undertaken by the Republic of Moldova. The Law came into effect on 16 August 2013. 

    The Law establishes the general legal provisions regarding authorization, monitoring and reporting of state aid in all domains of the economy, except for the agricultural domain. 

    Pursuant to the Law, state aid represents any measure of support offered by from state resources/ resources of administrative units, that confers to the beneficiary an economic advantage (that would not be obtained otherwise by the respective beneficiary, under normal market conditions), that is offered selectively, and distorts or may distort competition. 

    As such, any future state aid schemes shall be notified and authorized by Competition Council, while the authority shall also monitor the existing state aid schemes. 

    The Law also provides the criteria of evaluation of state aid schemes, state aid that is or may be compatible with competition, as well as the exemption of services of general economic interest, with the condition that they are granted pursuant to the Law, and of the de minimis state aid. 

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    Following the entry into force of the Law, the Competition Council adopted on 30 August 2013 numerous Regulations as secondary legal provisions supporting the application of the Law:

    • Regulation of the form of notification, procedure of examination and adoption of decisions on state aid, in force since 27 Sep. 2013;
    • Regulation on de minimis state aid, in force since 11 October 2013;
    • Regulation on the State Aid Registry, in force since 11 October 2013;
    • Regulation on state aid for regional development, in force since 18 October 2013;
    • Regulation on state aid for training of employees and for creation of new work places, in force since 18 October 2013;
    • Regulation on state aid for the rescue of the beneficiaries in need, in force since 1 November 2013;
    • Regulation on state aid for creation of enterprises by female entrepreneurs, in force since 25 October 2013;
    • Regulation on state aid for research, development, and innovation, in force since 29 November 2013;
    • Regulation on state aid for environmental protection, in force since 15 November 2013;
    • Regulation on state aid provided to small and medium enterprises, in force since 8 November 2013;
    • Regulation on state aid granted to beneficiaries that provide services of general economic interest, in force since 1 November 2013;
    • Regulation on state aid intended to remedy a serious disturbance in the economy, in force since 1 November 2013.