Public funding and state aid for services of general economic interest: EU legislation and the Czech Republic

Abstract

Since I May 2004, the Czech Republic has been a member state of the EU. Therefore, it is governed by EU legislation. On 20 December 2011, the European Commission adopted new legislation regulating the provision of compensatory payment for services of general economic interest. This legislation replaces the previous legislation in 2005 known as the Altmark package. Most of these regulations came into force on 31 January 2012. It is a highly important topic, as services of general economic interest are provided to the general public and the public is dependent on the provision of these services. For example, such services might include telecommunications, gas and electricity supplies, public transport, postal services, social housing and health. This paper deals with select problem areas and aims to shed light on such issues, especially with regard to current legislation.