13 Jul, 2018

Case Closed: Energy Community Drops Dispute Against EPS and Republic of Serbia Over Kolubara B Project

Gecić Law has successfully advised the Republic of Serbia and EPS, one of the largest energy companies in the region, in a probe led by Energy Community Secretariat regarding alleged State support for the multi-million-euro Kolubara B project. On Monday, June 25, 2018, the Energy Community Secretariat announced the parties reached an amicable solution bringing the two-year long case to an end. The Kolubara B power plant project will enable EPS to add 700 MW of electricity annually, constituting the most important investment in the Serbian energy infrastructure in the last four decades. The ruling not only confirmed our team’s […]

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08 Nov, 2017

Gecić Law Advises in Yet Another Landmark Decision Before the European Commission

Gecić Law acted as legal counsel to the Government of Serbia and the Železara Smederevo steel mill with respect to an European Commission (EC) investigation on the historical State aid received by the old company, and the potential responsibility of Hesteel Serbia to reimburse it, under the Stabilisation and Association Agreement (SAA).  On Wednesday, November 8, 2017, Johannes Hahn, Commissioner for European Neighborhood Policy and Enlargement Negotiations, informed the Prime Minister of the Republic of Serbia, Ana Brnabić, that the European Commission concluded that “the HeSteel-owned steel mill does not have to reimburse any state aid received in the past” (link).  […]

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15 Sep, 2017

Serbia and Montenegro: state aid spotlight on corporate profit tax

Both Serbia and Montenegro have come under pressure from the European Commission to amend their respective Corporate Profit Tax Acts to bring tax incentives in line with EU law. This update provides a closer look and analysis, which suggests that amendments are an option worth considering for both Serbia and Montenegro. However, any such legislative change would need to be implemented in a manner that takes into account the interests of all stakeholders, including the interests of investors benefiting from the existing incentive schemes. The European Commission in Chapter 8 of its Screening Report for Serbia, emphasized that specific aid […]

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27 Sep, 2016

EU State Aid: European Commission Bitting More Than It Can Chew?

McDonald’s might be the next company facing the obligation to pay back taxes, only this time to Luxembourg, in the amount of approximately $500 million, according to Financial Times estimates. In December 2015, the European Commission has opened a formal investigation of Luxembourg’s tax treatment in case of McDonald’s. It held a preliminary view that “a tax ruling granted by Luxembourg may have granted McDonald’s an advantageous tax treatment in breach of EU State aid rules.”1  The Commission is yet to render a decision that would conclude said formal investigation against American fast food giant and contain its final judgment […]

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05 Jan, 2016

A State Aid Perspective: Amendments to the Act on Incentives in Agriculture and Rural Development

On 12 December 2015, the Serbian Parliament enacted the amendments to the Act on Incentives in Agriculture and Rural Development.  The law was promulgated on 22 December and will be enforced as of 1 January 2016. Before we review the changes the Act on Incentives in Agriculture and Rural Development introduces, we will address the burning issue that all beneficiaries of agricultural subsidies might feel threatened by – whether these subsidies are currently caught by state aid rules (the “State Aid Act”) leaving beneficiaries open to potential recovery claims from the State Aid Authority? Тhe purpose of the Act on Incentives in […]

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