Stabilisation and Association Agreement - Official Documents

1. The Parties recognise the need that Bosnia and Herzegovina addresses
promptly any structural weaknesses of its steel sector to ensure the global
competitiveness of its industry.
2. Further to the disciplines stipulated by Article 71(1)(c) of this Agreement, the
assessment of the compatibility of State aid to the steel industry as defined in
Annex I of the Guidelines on national regional aid for 2007-2013 shall be made on
the basis of the criteria arising from the application of Article 87 of the EC Treaty
to the steel sector, including secondary legislation.
3. For the purposes of applying the provisions of Article 71(1)(c) of this
Agreement with regard to the steel industry, the Community recognises that, during
five years after the entry into force of this Agreement, Bosnia and Herzegovina
may exceptionally grant State aid for restructuring purposes to steel producing
firms in difficulties, provided that:
(a) it leads to the long-term viability of the benefiting firms under normal
market conditions at the end of the restructuring period, and
(b) the amount and intensity of such aid are strictly limited to what is
absolutely necessary in order to restore such viability, and aid is, where
appropriate, progressively reduced;
(c) the country presents a restructuring programme that is linked to a
global rationalisation which includes the closing of inefficient capacity.
Every steel producing firm benefiting from restructuring aid shall, as
far as possible, provide for compensatory measures balancing the
distortion of competition caused by the aid.
4. Bosnia and Herzegovina shall submit to the European Commission for
assessment a National Restructuring Programme and individual business plans for
each of the companies benefiting from restructuring aid which demonstrate that the
above conditions are fulfilled.
The individual business plans shall have been assessed and agreed by the public
authority established under Article 71(4) of this Agreement in view of their
compliance with paragraph 3 of this Protocol.
The European Commission shall confirm that the National Restructuring
Programme is in compliance with the requirements of paragraph 3.
5. The European Commission shall monitor the implementation of the plans, in
close cooperation with the competent national authorities, in particular the public
authority established under Article 71(4) of this Agreement.
If the monitoring indicates that aid to the beneficiaries which is not approved in the
National Restructuring Programme or any restructuring aid to steel firms not
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