23 Aug 2019

Be it for Better, be it for Worse – the New State Aid Control Act is Coming!

Alea iacta est! Serbia is in line for a new State Aid Control Act.

Ten years ago, when enacted, the first (and still the only) act was welcomed as a long-awaited and indispensable piece of legislation.  Today, and following ten-years’ implementation, we are about to get a new one.

What lessons have we drawn from implementation of the current act (apart from the fact that we need a new one)?

The reasons for adopting a new act, according to its drafters, are as follows:

  • Harmonization with the EU acquis – Well, that’s a turn-up for the books!  Can you think of an act going through legislative procedure in Serbia and not being justified by referring to “the need to harmonize national legislation with EU law”?  For some time now “harmonization” has proven to be a magical word in Serbia.  It is enough for a lawmaker to tinker with it for a while, and there you go – a new piece of legislation passed.  Truth be told, while a well-known “harmonization argument” gives cause for rapturous applause from some quarters, it makes others reject a new piece of legislation with utter disdain.
  • Compliance with the General Administrative Procedure Act – if you say so… but administrative law experts would probably like to have their say on it.

In sum, ratio legis as presented by the drafters is quite ordinary but some of the Draft content is rather surprising.  Will this legislative revamp improve the new State aid legal framework? Time will tell.  The die is cast but hangs in the air.

Finally, those having a good memory probably remember that some time ago we promised an analysis of the draft act – not to keep you waiting too long, here is our take on it.

*Our comments on the Draft State Aid Control Act are available in PDF format here.


Authors: Ivana StojanovićJelena Škorić, Nikola Nikodinović and Nadja Kosić