Gov't: New Rules to Apply to State Aid for Cleaning Up Environmental Damage

Bratislava, 20 May (TASR) - The provision of state aid in connection with removing environmental damage should be subject to new rules, primarily in justified cases in which such work is carried out by the state at its own expense, with a new mechanism to be put in place for determining the amount of excessive aid arising from an increase in the value of restored land, whereby the state would be required to recover such excessive aid from the beneficiary, according to a legislative amendment approved by the government at its session on Wednesday. "The reason for submitting the bill is to deal with certain problems with application in the current wording of the law; for example, in proceedings to determine the person liable and the schedule of work. The bill also defines and regulates state aid arrangements with regard to environmental damage," states the Environment Ministry's explanatory report accompanying the amendment to the law on certain measures in the field of environmental damage. Under current legislation, if there's an imminent threat to human life, health or the environment and if the source of the damage or the person liable fails to rectify the situation in a due and timely fashion, the state must carry out such measures with the use of public funds, while the costs must subsequently be refunded to the state by the source of the damage, or the person liable if the entity that caused the damage has ceased to exist or died, stated the ministry. The amendment thus aims to clarify the mechanism for determining the person liable who is responsible for drafting and implementing the schedule of work; for instance, in cases involving the transfer of ownership title to land contaminated by environmental damage. Furthermore, a mechanism should be established for determining the amount of excessive aid arising from an increase in the value of restored land, as set by an expert opinion. The ministry responsible will then be obliged to recover such excessive aid from the beneficiary. "These provisions are in line with the European Commission's requirements in the context of the State Aid Scheme for clearing up environmental damage on company land in cases in which the obligation to remove such damage has passed to the state," added the ministry. Slated to be become effective as from 1 January 2027, the bill also amends the Geological Works Act. jrg/df