State Aid for Environmental Protection Contra the Community Competition Rules

Entry to the EU will be denied to those countries that do not meet the legal, institutional and technical criteria of environmental protection. This article deals with state aid for environmental protection. It is known that the EC treaty prohibits government financial assistance to specific enterprises or industries that distorts competition and may affect trade between member states. The article analyses the approach followed by the commission in the assessment pursuant to article 92 EC treaty of state aid for the following purposes in the environmental field: investment, information activities, training and advisory services, temporary subsidies towards operating costs and purchase or use of environmentally products. The final part of article describes the government financial assistance for environmental protection in the Czech Republic and compares its with criteria mentioned above. Attention is paid also to the methodological improvement in the field of environmental expenditure specifications and public budget system.