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14 November 2019
From 1 January 2020, Serbia will have a new state aid regime under the new Act on State Aid Control.
One of the goals of the new act is to harmonise Serbia's state aid legal framework with EU law, which will help to advance the EU accession process and the implementation of Negotiation Chapter 8 – Competition Policy.
Until now, market participants have not focused on compliance with the state aid rules, likely due to a lack of awareness and relatively lenient enforcement; this is expected to change under the new act.
Although the new act largely mirrors the pertinent EU legal framework, it contains the following novelties:
For the private sector, the overhauled state aid set up ultimately means that particular caution must be paid in each transaction with state bodies (including other entities managing or disposing of public funds). Such transactions should be carefully assessed for:
The risk of failing to undertake a proper assessment is now significant, as the State Aid Agency can oblige the state aid grantor to undertake measures to recover any incompatible aid within 10 years from the date on which such aid was granted.
For further information on this topic please contact Srdjana Petronijević, Zoran Šoljaga or Jelena Obradović at Moravčević Vojnović and Partners in cooperation with Schoenherr telephone (+381 11 320 26 00) or email (email@example.com, firstname.lastname@example.org or email@example.com). The Moravčević Vojnović and Partners in cooperation with Schoenherr website can be accessed at www.schoenherr.rs.
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