STATE AID MONITORING [ S.L.325.07 1
SUBSIDIARY LEGISLATION 325.07
STATE AID MONITORING REGULATIONS
30th April, 2002
LEGAL NOTICE 103 of 2002.
Title.
Regulations.
Interpretation.
Cap. 325.
"Board" means the State Aid Monitoring Board established under
article 57 of the Act;
"existing State aid" means all State aid whether individual aid or
aid under a scheme which existed prior to the entry into force of
these regulations and was put into effect before, and is still
applicable after the entry into force of these regulations, and in the
case of aid under a scheme, includes such aid which may be due
after such entry into force under a scheme put into effect before
such entry into force;
"Gazette" means the Government Gazette;
"interested party" means any person, undertaking or association
of undertakings whose interests might be affected by the granting
of aid, in particular the recipient of the State aid, competing
undertakings and trade associations;
"new State aid" means all State aid, that is to say, aid schemes
and individual aid granted or intended to be granted after the
coming into force of these regulations and which is not existing aid,
and includes any existing State aid modified after such coming into
force;
"non-notified State aid" means any State aid granted without
being notified in accordance with regulation 5 after these
regulations have come into force, or any new State aid granted
prior to the issue of the Board’s opinion;
"provider of State aid" includes the Government, its Ministries
and departments, entities falling under such Ministries and
departments, as well as local councils that, directly or indirectly,
grant or plan to grant State aid, as well as any other bodies
authorized by the State to grant State aid;
"recipient of State aid" means any individual or undertaking
carrying an economic activity granted State aid;
"State aid" includes any individual State aid whether under a
scheme or otherwise, as well as State aid schemes granted or
operated by the provider of State aid, in any form whatsoever,
which, directly or indirectly, results in an economic advantage or
benefit which would not have been received by the recipient of
such aid under normal market conditions;
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"State aid scheme" means any scheme according to which, on the
happening of a predetermined occurrence, and without further
implementing measures to bring the scheme into effect, individual
State aid awards may be made or benefits may be granted to
undertakings as defined in such scheme, as well as any scheme
under which individual aid or benefits may be granted to
undertakings belonging to such class or category as defined in the
scheme, irrespective of the happening of any particular occurrence
or of the existence of any specific project.
Conditions for the 
granting of state 
aid.
3. State aid that distorts or threatens to distort competition
within the relevant market, by favouring certain undertakings or the
production of certain goods or the provision of certain services
shall be prohibited:
Provided that it shall not be prohibited to grant such State
aid in the following cases: 
( a ) where aid, having a social character, is granted to
individual consumers without discrimination regarding
the type of product;
( b ) where aid is aimed at covering losses caused by
natural disasters or exceptional occurrences:
Provided further that such State aid that is compatible with
the principles and practices referred to in article 58(1)( b ) of the Act
may also be granted.
Rights of the 
Board.
4. (1) In exercise of its powers and functions under the Act,
the Board shall have the right of access to all relevant information,
and may seek the clarifications and explanations that it may deem
necessary for its deliberations and conclusions. 
(2) Where the Board considers that the information received
from the provider of State aid is not sufficient, it shall request all
necessary additional information.
(3) The Board may invite any interested party to make
submissions regarding an aid under examination.
Notification of new 
state aid.
5. (1) The provider of new State aid shall notify the Board
with all proposals for any such aid.
(2) The provider of new State aid shall furnish the Board with
all the necessary information required by the Board to issue its
opinion.
(3) The notification shall be made on a return in the form in
accordance with the First Schedule.
Examination 
procedure.
6. (1) The Board shall examine the proposed State aid and
shall, within sixty days from receipt of all information requested by
it, issue to the provider of State aid or any interested party a
preliminary opinion regarding the notified aid. The provider of
State aid as well as any interested party may, within thirty days of
receipt of the preliminary opinion, make further submissions.
(2) Where the Board, after the receipt of further submissions or
after the lapse of time for such submissions finds that the notified
State aid is compatible with these regulations, it shall issue its final
STATE AID MONITORING [ S.L.325.07 3
opinion.
(3) Where the Board after such receipt or such lapse of time for
further submissions is of the opinion that the notified aid may not
be compatible with these regulations, it shall request the provider
of State aid to make all the necessary additional detailed
submissions concerning the said aid.
(4) The Board shall, on receiving all the necessary information,
issue its final opinion within sixty days from receipt of last
submissions and communicate its conclusion in writing to the
provider of State aid and any interested party. 
Standstill clause.
into effect before the Board has issued its final opinion regarding
such aid pursuant to regulation 6(4) or where the Board has issued a
negative opinion.
Non-notified aid.
aid, it shall start examining such aid without delay.
(2) Non-notified State aid shall be examined by the Board in
accordance with the procedure established in regulation 6.
Suspension of non-
notified state aid.
 9. (1) The Board may, after giving the provider of State aid
the opportunity to make its submissions, require the said provider
State to suspend the non-notified State aid until the Board issues its
opinion.
(2) * The Board may, after giving the provider of State aid the
opportunity to make submissions, require the provider of State
recovery of aid to suspend and provisionally recover the non-
notified State aid until the Board issues its opinion, if the following
criteria are fulfilled:
( a ) there is no doubt about the aid character of the
measure concerned; and
( b ) there is an urgency to act; and
( c ) there is a serious risk of substantial and irreparable
damage to competing undertakings.
 Recovery of non-
notified state aid.
10. † (1) Where the Board has indicated in its opinion that non-
notified State aid is not compatible with regulation 3, the provider
of State aid shall take all the necessary measures to recover such
aid from the recipient. 
(2) Such State aid, together with interest thereon, shall be
recovered in accordance with regulations prescribed by the
Minister responsible for finance.
Examination of 
existing state aid.
11. ‡ (1) Within three months from entry into force of these
regulations the provider of State aid shall submit to the Board all
details of any existing State aid on a return in the form in
accordance with the First Schedule.
*this sub-regulation is not yet in force.
†this regulation is not yet in force.
‡this regulation is not yet in force.
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(2) Where the Board, following the information received,
cannot, due to insufficient information give its opinion regarding
the existing State aid, it shall request the provider of such State aid
to make within a reasonable time all the necessary additional
detailed submissions concerning the said aid:
Provided that submissions received regarding any of the
existing State aid listed in the Second Schedule shall not be subject
to examination by the Board for the purpose of regulation 12 and
regulation 14. 
(3) The Board shall examine the information received
regarding the existing State aid and shall within sixty days from
receipt of these submissions issue its opinion regarding the
compatibility of such State aid with regulation 3.
Board’s opinion 
regarding existing 
state aid.
12. (1) Where the Board finds that the existing State aid is
incompatible with regulation 3, it shall in its opinion:
( a ) indicate, where necessary, that modifications be made;
or
( b ) require that the existing State aid be discontinued.
(2) Where the Board is of the opinion that the existing State aid
should be modified, such State aid shall, where the Board deems it
necessary, be temporarily suspended until the necessary
modifications are made.
(3) Where the Board is of the opinion that the existing State aid
should be discontinued, the provider of such State aid shall, on
receipt of the Board’s opinion, take all the necessary measures to
discontinue the granting of the existing State aid.
Non-compliance. 13. Where the provider of State aid fails to comply with the
opinion of the Board, the latter shall refer the matter to the Minister
responsible for the provider of such State aid.
Publication of 
conclusions of 
Board’s opinion.
14. The conclusions of the Board concerning its opinion on
State aid shall be published in the Gazette.
Returns required 
by the Board.
15. The provider of State aid shall, not later than three months
after the end of each calendar year, supply the Board, on a
prescribed form, with details of any State aid granted during the
immediately preceding year. 
STATE AID MONITORING [ S.L.325.07 5
FIRST SCHEDULE
Regulation 5(3) and regulation 11(1)
Notification of State Aid
SECOND SCHEDULE
Regulation 11(2)
Existing State Aid not subject to regulation 12
1. Agriculture and Fisheries sectors,
2. Aid granted up to 31st October, 2000 under both the
Business Promotion Act (Cap. 325), formerly the Industrial
Development Act, and the Malta Freeport Act (Cap. 334),
3. Shipbuilding and ship repair: Malta Drydocks Corporation
and Malta Shipbuilding Company Limited,
4. Tourism: Tour Operator Support Scheme,
5. Transport sector,
6. Utilities: Enemalta Corporation and Water Services
Corporation,
7. Government guarantees.
Summary Information on State Aid
Information requested Explanatory remarks
Name of Recipient of State Aid The name of the recipient or
undertaking receiving the aid.
Title of aid or aid scheme The name of the aid or aid scheme -
a precise indication of the rules and
conditions of application should be
given.
Legal basis The precise legal reference for the
aid.
Annual State aid planned to be
granted to the undertaking. In the
case of existing State aid the annual
aid granted
Amounts in local currency - the
annual overall amount for all aid
instruments.
Maximum aid intensity The maximum aid amount to be
granted.
Date of implementation The date from which the aid will be/
has been granted.
Duration and termination of the aid
or aid scheme
The duration and the date (year and
month) until when the aid will be
granted.
Objective of aid The objectives for which the aid will
be/has been granted.
