European Property Federation

STATE AID
issue	impact	status

EU Guidelines on State Aid for Environmental Protection

¤ August 2008 ¤

Guidelines target areas of specific interest to land and building owners.

The Guidelines are the basis for Commission assessment of environmental aid.

State Aid to Swedish Municipal Housing Companies -Standards & Poor's analyses impact of EPF complaint-

¤ December 2006 ¤

Affects credit rating of municipal housing companies.

Second EPF complaint to the Commission in an ongoing investigation.

Dutch Social Housing

¤ March 2006 ¤

• European Commission curtails the freedom of social housing associations to let their over capacity to normal income tenants.

• Decision combats distortion of competition.

Dutch regime must be adapted in consequence.

Swedish Municipal Housing Companies (C) – Swedish government response to EPF’s 2nd complaint and EPF rebuttal

¤ March 2006 ¤

As, by law, municipal housing companies (MHCs) set the rents for the private sector, state aid to MHCs distorts competition.

2nd EPF complaint to the Commission.

Berlin Transfer Tax Exemption for Housing Companies

¤ November 2005 ¤

• Commission prohibits real estate transfer tax exemption for housing companies in Berlin.

• Delimits new “pockets of deprivation” policy.

Scheme prohibited.

New Rules on State Funding for Social Housing

¤ August 2005 ¤

Clarify the scope of Treaty state aid rules relevant to social housing.

Enter into force immediately.

State Aid Action Plan

¤ June 2005 ¤

New options for EPF state aid complaints.

Consultation document.

State Aid to Swedish Municipal Housing Companies (B)

¤ May 2005 ¤

More than € 1.5 billion of subsidies distorting the market for all private-sector housing, Swedish and non-Swedish.

EPF complaint to the Commission in an ongoing investigation.

UK property tax on telecoms

¤ January 2005 ¤

Difference in UK autorities’ valuation methods for assets of telecom companies leads to disproportionate tax burdens.

Under investigation.

White Paper on Services of General Interest

¤ June 2004 ¤

Important for defining the limits of state funding of market-based systems for delivering housing.

More detailed proposals in 2005.

State Aid to Swedish Municipal Housing Companies (A): Following an EPF complaint, the Commission is discussing with the Swedish authorities amendments to bring the Swedish scheme into line with European law

¤ April 2004 ¤

The State aid causes distortion of competition to the detriment of all private property investors including the large and expanding number of non-Swedish investors.

Ongoing investigation.

UK “Stamp Duty Exemption” and UK “Support for Land Remediation”

¤ August 2003 ¤

Helps property developers’ land remediation efforts.

Commission approval extends to end 2006.

European Commission authorises UK Partnership Support for Regeneration (of derelict land and buildings)

¤ August 2001 ¤

Sets limits on State aid to developers of derelict land.

Commission Decision.

Building Renovation

¤ December 2000 ¤

Concerns renovation to improve indoor air quality.

Commission Decision.

Sale of Land at Below Market Prices

¤ November 1999 ¤

EPF members possess Secretariat guide for complainants.

Ten cases so far in Germany, France, Spain and UK.