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EC Approves Social Aid For Air Travel Between Madeira And Portugal,
by Ulrika Lomas, Tax-News.com, Brussels
Wednesday, December 12, 2007
The European Commission has approved changes to a social state aid scheme proposed
by the Portuguese authorities for air transport services between mainland Portugal
and the Autonomous Region of Madeira.
The scheme, approved by the Commission in 1998, is available to residents of
the Autonomous Region of Madeira and students meeting certain criteria.
The eligible applicants must be resident, without discrimination on grounds
of nationality, or students who make journeys by air between continental Portugal
and Madeira.
Students must meet one of the following additional conditions: attendance at
a teaching establishment in continental Portugal or another EU Member State,
with last habitual residence in Madeira, or attendance
at a teaching establishment in Madeira, with last habitual
residence in continental Portugal.
The modified scheme introduces a fixed subsidy of EUR60 per return journey,
as long as the fares used by the residents and students are higher than this
amount. Other modifications to the existing aid scheme rely on liberalisation
of passenger air fares, bringing an end to the maximum amounts to be paid, currently
set at EUR151 and EUR113 respectively. Another new feature is that the payment
of the subsidy will occur after the event, with beneficiaries having to request
its payment from the public body, subject to proof of eligibility.
The Commission has found that the measure is compatible with the EC Treaty, which provides that aid of a social character granted to individual
consumers without discrimination as to the origin of the service provider is
compatible with the common market. The aid measure is similar in scope and application
to aid measures which have been previously approved by the Commission on the
same grounds.
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