Article 1

Article 1 Official translation REPUBLIC OF LITHUANIA L A W ON MONITORING OF STATE AID TO UNDERTAKINGS 18 May 2000, No VIII-1689 Vilnius CHAPTER I GENERAL PROIVISIONS Article

1. Objectives of the Law
2. The objectives of this Law are to establish the procedure of granting State aid which would help avert major distortions of competition and affecting trade between the Republic of Lithuania and the Member States of the European Union or the states with which the Republic of Lithuania has concluded free trade or other international agreements with appropriate provisions on State aid .
3. Under the requirements of the Europe Agreement establishing an association between the European Communities, their Member States, of the one part, and the Republic of Lithuania, of the other part (hereinafter - the Europe Agreement), this Law shall lay down the terms and conditions under which a provider of State aid may grant such aid to undertakings, and the procedure of monitoring State aid. Article
4. Definitions
5. State aid - measures of aid directly applied or supported by providers of State aid, financed from the state or municipal budgets or monetary sources and intended for certain undertakings or for the production of certain goods, or provision of certain services, giving to undertakings economic advantage which would be impossible under the conditions of a free market without these measures. Forms of State aid shall include grants (subsidies), tax exemptions, reduction and deferral of taxes, writing off of late fees and penalties, different types of increase of the state-owned equity at enterprises or increase of its value, soft loans, state guarantees and other forms of aid provided in the manner laid down by laws and other legal acts.
6. Provider of State aid - institutions of state administration and local government, agencies or undertakings who provide or envisage to provide State aid.
7. Recipient of State aid - any undertaking receiving State aid.
8. Existing State aid - State aid authorised by the Competition Council of the Republic of Lithuania (hereinafter - the Competition Council) after the entry into force of this Law, also State aid which existed prior to the entry into force of this Law (but not before the entry into force of the Europe Agreement) and is still continuing.
9. New State aid - intended State aid which has not yet been authorised by the Competition Council, also existing aid which is to undergo substantive alterations. Existing State aid which is to undergo substantive alterations shall be such aid the value whereof shall be increased by more than 20 percent annually as against the annual value of the authorised aid or which shall have a substantial revision of its aims, terms and conditions of existing aid.
10. Unnotified State aid - State aid granted after the entry into force of this Law, which has not been notified to the Competition Council under the requirements of this Law.
11. Grant (subsidy) - a non refundable state financial assistance.
12. Grant equivalent - State aid in its monetary expression. The procedure for calculating the grant equivalent shall be established by the Competition Council. The net grant equivalent is State aid in its monetary expression after tax.
13. Intensity of State aid - the net grant equivalent expressed as a percentage of the gross investment (expenses) of the recipient of State aid, and when State aid is intended for job creation - of the expenses for work remuneration over a period of two years.
14. De minimis aid - State aid expressed in the form of grant equivalent, not exceeding LTL 400, 000 for one aid recipient over a three-year period beginning when the first aid is granted.
15. Export aid - State aid intended for support of export of goods and services, the setting up and operation of a distribution network for exported goods, or to cover export related expenses of undertakings. Aid shall not be regarded export aid where it is granted for the purpose of conducting market research, for participation in various exhibitions and fairs, for export related training and consultancy help.
16. State aid scheme - a plan establishing for a group of undertakings certain conditions under which they are to receive State aid for the attainment of specific aims. Several State aid schemes and other expenses which are not treated as State aid may constitute a programme aimed at the implementation of state policies at the level of distinct territorial units or economic sectors.
17. Aid for an undertaking (individual aid) - State aid granted to one recipient of State aid.
18. Small or medium-sized enterprise: 1) a micro-enterprise - an enterprise which has fewer than 10 employees; 2) a small enterprise - an enterprise which has fewer than 50 employees; has an annual income not in excess of LTL 28,000,000 or its total assets not in excess of LT 20,000,000; 3) a medium-sized enterprise - an enterprise which has fewer than 250 employees; has an annual income not in excess of LT 160, 000, 000 or its total assets not in excess of LT 108, 000,
20. Independent small or medium-sized enterprise - a small or medium-sized enterprise which is not owned as to more than 25 % of the capital or the voting rights by other enterprises, falling outside the definition of a small or medium-sized enterprise, with the exception of investment companies
21. Region - part of the territory of the Republic of Lithuania the undertakings whereof may be awarded State aid consistent with the aims of regional policy.
22. Large-scale investment - an investment the total value whereof is in excess of LTL 200,000,000 and intensity of the aid, including aid from the Structural Funds, exceeds half of the intensity of the aid for regional development, and when State aid is intended for job creation - it exceeds LTL 160, 000 for a single job, or an investment in which State aid constitutes more than LTL 200, 000,
24. State aid intended for rescuing an undertaking - State aid granted for a temporary support of an insolvent undertaking or an undertaking in difficulty before the economic condition of the undertaking is analysed and a plan for its restructuring or liquidation is prepared.
25. State aid for restructuring an undertaking - State aid aimed at restructuring the activities of an undertaking and ensuring its long-term viability within a reasonable time scale.
26. State aid for regional development - State aid intended to support investment projects of undertakings in regions or job creation linked to the carrying out of a new investment project, and awarded in compliance with the provisions of Article 11 of this Law. 21 Operating aid - State aid which is not related to investments, job creation, restructuring of an undertaking, staff training, research, acquisition of patents and transfer of new technologies.
27. Undertaking - enterprises, their combinations (associations, amalgamations, consortiums etc.), agencies and organisations, legal or natural entities which are conducting or may conduct economic activities in the Republic of Lithuania. Article
28. Scope
29. This Law shall apply to all sectors of manufacturing and services and all possible forms of aid, with the exception of cases referred to in paragraphs 2, 3, and 4 of this Article, also when other laws provide otherwise.
30. Provisions of this Law shall apply to enterprises which under the law and other legal acts of the Republic of Lithuania have special or exclusive rights related to provision of universal services, or are entrusted, accordingly, to perform specific functions, insofar as they do not contradict the performance of the principal functions of these enterprises. The Competition Council may authorise state aid intended for compensation of losses incurred by the enterprises during performance of their main functions.
31. Provisions of this Law shall not apply to agriculture and fisheries.
32. This Law shall not apply to State aid measures which are granted and are accessible to all undertakings under equal terms and conditions, including certain manufacturing and services sectors, also infrastructure development, provided this development does not give exclusive advantage to one or several undertakings. Article
33. Basic Principles of Monitoring State Aid
34. Monitoring of State aid shall be exercised by the Competition Council of the Republic of Lithuania. State aid may be granted subject to the authorisation of the Competition Council.
35. Providers of State aid are obliged to ensure transparency of the aid granted and notify the Competition Council about new and existing aid and submit annual reports about the aid granted.
36. State aid granted to individual undertakings or for the production of certain goods or provision of certain services, which distorts or threatens to distort competition and affects trade between Lithuania and the Member States of the European Union, or the states with which Lithuania has signed free trade agreements or other international agreements with appropriate provisions on State aid, shall be prohibited.
37. State aid shall be permitted without authorisation of the Competition Council in the following cases: 1) aid of social nature is provided for individual consumers without discrimination related to the origin of products concerned, as well as aid to make good the damage caused by natural disasters or other exceptional occurrences (force majeure); 2) de minimis aid, with the exception of such aid granted to ship building, transport, the steel industry, and export; 3) aid which has been authorised under the procedure laid down in paragraph 3, Article 64 of the Europe Agreement, though it does not comply with the provisions of this Law on granting State aid to distinct sectors of economy, for regional development or attainment of certain aims. CHAPTER II PROVISIONS ON STATE AID FOR ATTAINMENT OF CERTAIN AIMS, REGIONAL DEVELOPMENT AND DISTINCT SECTORS OF ECONOMY Article
38. Aid to Export It shall be prohibited to grant aid to export, with the exception of cases when such aid does not contravene paragraph 5, Article 64 of the Europe Agreement, and other international agreements. Article
39. State Aid to Small or Medium-Sized Enterprises
40. State aid to small or medium-sized enterprises may be authorised by the Competition Council provided the following conditions are met: 1) State aid promotes the activity of an enterprise but does not have as its object covering its current expenses; 2) the aid is necessary to attain general economic aims; 3) State aid is proportional, i.e. not bigger than it is necessary to attain a certain aim; 4) a small or medium-sized enterprise is independent.
41. State aid intended to pay for consultancy services, training, and dissemination of experience acquired, may be authorised by the Competition Council provided that the intensity of the aid does not exceed 50 percent of the requisite costs. If State aid is granted to small or medium-sized enterprises in the areas designated as eligible for State aid under Article 11 of this Law, the intensity of the aid may be increased by 25 percentage points. State aid to reduce current expenses of undertakings may be granted only in accordance with the provisions of Article 12 of this Law.
42. State aid intended for investments into fixed assets when it is granted to small or medium-sized enterprises in the areas designated as eligible for aid under Article 11 of this Law, may be authorised by the Competition Council provided that the intensity of the aid is higher by 15 percentage points than the highest permissible intensity level of State aid for regional development. In determining the intensity level, the purchasing price of land, buildings and fixed assets (when creating new enterprises, modernising or restructuring the existing enterprises, when introducing new types of products or technologies) shall be regarded as expenses.
43. State aid intended for supporting export, environmental protection, research, acquisition of patents and transfer of technologies may be authorised by the Competition Council provided that such aid is granted in accordance with the provisions of this Law (Articles 5, 7, and 10 ). When providing State aid to small or medium-sized enterprises for environmental protection, the intensity of the aid may be additionally increased by 15 percentage points in comparison with the norms specified in Article
44. Article
45. State Aid for the Promotion of Environmental Protection, Energy Efficiency and Production of Energy from Renewable Sources
46. State aid intended for additional investments in land, buildings and equipment may be authorised only where these investments are designed to reduce environmental pollution or to introduce new environment-friendly methods of production (excluding general investment costs which are not attributable to environmental protection).
47. The investments specified in paragraph 1 of this Article which are designed to help undertakings to adjust to the new requirements in the sphere of environmental protection may be authorised by the Competition Council provided the undertaking has been operating for at least two years when the new standards enter into force, and if the intensity of the aid does not exceed 15 percentage of the costs specified in paragraph 1 of this Article. If State aid is provided to undertakings in the regions designated as eligible for State aid under Article 11 of this Law, the intensity of such aid may be increased up to the highest permissible intensity level of the State aid for regional development.
48. State aid provided for the investments specified in paragraph 1 of this Article, designed to reduce pollution of the environment caused by an undertaking may be authorised provided the intensity of the aid does not exceed 30 percent of the costs specified in paragraph 1 of this Article. If State aid is provided to undertakings in the regions designated as eligible for State aid under Article 11 of this Law, the intensity of such aid may be increased up to the highest permissible limit of the State aid for regional development.
49. State aid granted to undertakings operating in the sector where environmental protection standards are not mandatory but which seek to reduce substantially the level of pollution on their own initiative may be authorised, provided the intensity of State aid does not exceed the limits set forth in paragraph 3 of this Article.
50. State aid designed to cover the costs of training and consultancy help to undertakings on environmental protection may be authorised provided the intensity of State aid does not exceed 50 percent of the expenses designed for training and consultancy help.
51. State support designed to spread information and increase general environmental awareness among the general public (research and development of technologies that cause less pollution, consultancy services about introduction of new technologies, environmental audits in enterprises, etc.), to launch environmental publicity campaigns, to make polluted sites again fit for use in cases when the persons responsible for the pollution cannot be identified or when there is no possibility to recover damages from them, and to purchase environmentally friendly products shall not be regarded as State aid except in cases when such support results or may result in changes of the competitive position of the recipient or a market sector of the relevant market.
52. State aid for energy conservation (for the design, construction, obtaining or modernising of energy conservation equipment etc.) shall be treated like aid for environmental purposes if it achieves significant benefits for the environment. The intensity level of State aid for energy conservation shall be determined in the manner specified in paragraphs 2 and 3 of this Article.
53. The level of permissible intensity of State aid designed for the promotion of energy from renewable sources (solar, wind, hydro, and biomass) of energy shall be determined in the manner set forth in paragraph 3 of this Article.
54. State aid for scientific research in the environmental field may be authorised provided it is granted in accordance with the manner specified in Article 10 of this Law. Article
55. State Aid to Promote Employment
56. State aid designed to promote employment may be authorised provided it is intended to maintain jobs or to create new jobs not linked to the realisation of new investment projects, and is granted in compliance with the rules of providing State aid to increase employment approved by the Competition Council.
57. State aid aimed at job creation linked to the realisation of new investment for undertakings may be authorised provided it is granted in accordance with the stipulations of Article 11 of this Law.
58. After granting State aid for job creation, the overall number of employees must be increased. The new jobs must be maintained for at least two years after the end of a State aid scheme or individual aid.
59. The amount of State aid for job creation shall be calculated on the basis of the number of new jobs but it may not exceed the levels set forth in this Law.
60. The amount of State aid to maintain jobs shall be calculated on the basis of the number of employees at an undertaking at the time the aid is granted. This aid shall be regarded as operating aid and it may be authorised if it is necessary and if it is being granted in the manner prescribed by Article 12 of this Law , with the exception of cases specified in subparagraph 1, paragraph 4, Article 4 of this Law (natural disasters and other exceptional occurrences).
61. When providing State aid designed to maintain jobs at enterprises in difficulty it is essential to adhere to the provisions of Article 9 of this Law. Article
62. State Aid for Rescue and Restructuring of an Enterprise
63. State aid intended for the rescue of an enterprise may be authorised under the following conditions: 1) the aid comprises only state loans or state guarantees for loans extended to undertakings, and in both cases the interest rate shall not be lower than the annual average interest rate on five-year loans announced by the Bank of Lithuania; 2) the aid is not bigger in scale than is necessary for maintaining the enterprises activity and it is provided under the rules of State aid for rescue and restructuring of enterprises in difficulty approved by the Competition Council; 3) the aid is temporary (not longer than 6 months) until a plan for restructuring (liquidation) of the enterprise is designed and submitted to the Competition Council. If during this period the enterprise fails to submit said plan, it must submit to the Competition Council documents evidencing that the loans extended have been repaid or that state guarantees have been terminated. If the plan for restructuring the enterprise has been submitted to the Competition Council , said period shall be extended until the Council adopts a decision under paragraph 1 of Article 18 of this Law; 4) loans extended to the enterprise will be repaid within 12 months from the extension of the loan; 5) aid is intended to avert serious social and economic consequences; 6) aid for rescue of the enterprise is granted only once (usually once in ten years);
64. State aid for the restructuring of an enterprise may be authorised where a plan for restructuring of the enterprise has been designed and submitted to the Competition Council and where the following conditions have been met: 1) the restructuring plan contains provision for measures of restructuring and long-term viability guarantees; 2) during the period of implementation of the restructuring plan State aid shall not be provided for enhancing the enterprise’s production capacity, with the exception of cases when this is essential for restoring the enterprise’s long-term viability without distortions of competition; 3) when granting State aid to an enterprise in a sector experiencing excess capacity the plan for the restructuring of an enterprise shall also provide for measures which, in the event of necessity, could reduce the enterprise’s production capacity; 4) a considerable contribution of the recipients of State aid is anticipated (all possible means which the recipients of State aid are capable of carrying out) in designing and implementing the restructuring plan of the enterprise providing only for the means indispensable for restoring the enterprise’s long-term viability and which are proportionate to the anticipated benefit; 5) providers of State aid shall notify the Competition Council about the course of restructuring of the enterprise.
65. State aid where the State or the municipality directly or indirectly compensate restructuring-related costs for social needs and which, under the existing laws, must be covered by the enterprise, may be authorised provided the restructuring measures stipulated in the restructuring plan conform to the provisions of this Law. Article
66. State aid for Research, Acquisition of Patents and Transfer of Technologies
67. State aid for fundamental research, i.e. research activities of experimental or theoretical character which are not directly intended for the attainment of specific industrial or business aims may be authorised by the Competition Council when the intensity of State aid is up to 100 percent of the costs specified in paragraph 12 of this Article.
68. State aid for applied research, i.e. research intended for acquisition of knowledge the objective being that such knowledge may be useful in developing new or bringing about a significant improvement in existing products, services or technologies may be approved provided the intensity of State aid does not amount to more than 50 percent of the costs specified in paragraph 12 of this Article.
69. State aid for pre-competitive development activity, i.e. for projects aimed at a direct use of the results of applied research for developing new or bringing about a significant improvement in existing products, services or technologies intended for selling or using may be authorised by the Competition Council provided the intensity of State aid is not in excess of 25 percent of the costs specified in paragraph 12 of this Article.
70. State aid designed for both applied research and pre-competitive development activity may be approved by the Competition Council where the intensity of State aid is not in excess of the intensity average stipulated in paragraphs 2 and 3 of this Article.
71. State aid for applied research and pre-competitive development activity, for feasibility studies may be authorised by the Competition Council provided the intensity of State aid for applied research does not exceed 75 percent, and for pre-competitive activity - 50 percent of the costs set out in paragraph 12 of this Article.
72. The intensity of State aid for small and medium-sized enterprises intended for applied research or for pre-competitive development activity may be 10 percentage points higher than laid down in paragraphs 2 and 3 of this Article.
73. State aid for applied research or pre-competitive development activity may exceed the level set out in paragraphs 2 and 3 of this Article where the aid is granted to undertakings in the areas designated as eligible for aid under Article 11 of this Law.
74. State aid for applied research or pre-competitive development activity may exceed the level set out in paragraphs 2 and 3 of this Article if both undertakings, non-profit-making organisations, higher education and research institutions or foreign enterprises take part in the implementation of the project.
75. Intensity of State aid intended for the implementation of research projects authorised in the European Union may be 15 percentage points higher than that set out in paragraphs 2 and 3 of this Article. Where both undertakings and non-profit-making organisations, higher education and research institutions or foreign enterprises take part in the implementation of the project, and the results of the projects are published, the intensity of State aid may be 25 percentage points higher than that specified in paragraphs 2 and 3 of this Article.
76. The intensity of State aid for applied research may not exceed 75 percent, and the intensity of State aid for pre-competitive development activity - 50 percent of the costs specified in paragraph 12 of this Article where the intensity of State aid set out in paragraphs 2 and 3 of this Article is increased by percentage points under paragraphs 6, 7, 8, and 9 of this Article.
77. The intensity of State aid designed for acquisition of patents and transfer of technologies may not exceed 25 percent of the costs related to acquisition of patents and transfer of technologies. Where State aid is granted to small or medium-sized undertakings its intensity may be increased by 10 percentage points.
78. When calculating the intensity of State aid under this Article, the costs related to research or pre-competitive development activity and specified in paragraphs 1, 2, 3, 5, and 10 of this Article shall be included: 1) costs of personnel employed solely on the research activity; 2) costs of instruments, equipment, premises and land used solely on a continual basis for the research activity (where instruments, equipment and land are used not solely for research purposes - the share of research costs); 3) costs of consultancy or services used for the research activity; 4) additional overhead expenses incurred directly as a result of the research activity; 5) other operating expenses incurred directly as a result of the research activity (materials and similar products). Article
79. State Aid for Regional Development
80. State aid for regional development may be authorised provided it corresponds to the country’s regional policy goals and is granted in conformity with the rules of State aid for regional development approved by the Competition Council.
81. State aid for regional development designed to support investment or job creation may be granted in the form of grants, subsidies, soft loans or tax incentives. The new jobs and investments shall be maintained for at least five years.
82. The ceiling of the intensity of State aid for regional development shall be up to 50 percent of the investment amount (i.e. the investment into fixed assets of an enterprise, expansion of the existing enterprise, transfer of new products and technologies) or up to 50 percent of the wage costs of newly created jobs calculated over a period of two years, with the exception of cases set out in paragraph 3, Article 6 of this Law. Article
83. Operating Aid
84. Operating aid may be authorised by the Competition Council if the aid is granted to undertakings in the areas eligible for regional development aid under Article 11 of this Law provided the following requirements are met: 1) the aid is progressively reduced and limited in time; 2) the aid is granted for a long-term sustainable growth; 3) the aid is indispensable, and its amount is justified; 4) the aid is granted in conformity with the provisions of Article 9 of this Law. Article
85. State aid for Individual Sectors State aid for individual sectors may be authorised by the Competition Council where State aid is in conformity with Community law and adheres to the rules of State aid for these particular sectors which are determined and approved by the Competition Council. CHAPTER III MONITORING OF STATE AID Article
86. Notification of State Aid
87. The provider of State aid must notify the Competition Council, in a format established by the Competition Council, of new State aid projects as well as of existing aid which started before entry into force of this Law but not prior to entry into force of the Europe Agreement and which is continuing until now. Notification of new State aid must be submitted before provision of the aid starts. Existing State aid which started prior to entry into force of this Law (but not prior to entry into force of the Europe Agreement) and which is continuing until now must be notified to the Competition Council within six months after entry of this Law into force.
88. State aid must be notified where State aid provided to individual recipients or within the State aid scheme, exceeds de minimis aid.
89. State aid for export where export is one of the conditions for granting State aid, also aid for shipbuilding, transport, the steel industry where this is set out in the rules for State aid for individual sectors, must be notified in advance even in those cases when this is de minimis aid.
90. State aid need not be notified in the case specified in subparagraph 1, paragraph 4, Article 4 of this Law. State aid to make good losses caused by natural disasters or other exceptional occurrences (force majeure) must be notified to the Competition Council under the requirements of this Law only where the amount of State aid exceeds the damage sustained.
91. State aid for non-profit organisations, higher education and research institutions to carry out research need not be notified in the cases where the results of research are to be made public, except in cases set out in paragraphs 8 and 9, Article 10 of this Law.
92. Providers of State aid must notify the Competition Council of State aid for large-scale investment projects (this requirement shall also apply in cases when the aid is granted under the schemes which have already been authorised by the Competition Council) and provide information about the implementation of said projects. The procedure of notification large-scale investment projects and information about the implementation of said projects shall be determined by the Competition Council.
93. The provider of State aid shall have no right to perform actions related to the implementation of the new State aid project until the Competition Council adopts an appropriate decision under subparagraphs 1 and 2, paragraph 1, Article 18 of this Law. Article
94. Provision of Information about State Aid
95. Providers of State aid must submit to the Competition Council all information for it to be able to give a reasoned assessment of the aims, economic impact and intensity of the State aid project or State aid provided.
96. The Competition Council shall be entitled to request all necessary additional information from the provider or recipient of State aid if the information provided in the notification of State aid is not sufficient for an in-depth analysis. Additional information must be provided within a prescribed time period. Article
97. Annual Report on State Aid Within six months after the end of the calendar year during which aid was granted, the provider of State aid must submit to the Competition Council an annual report, (including de minimis aid) on State aid in the format established by the Competition Council. Article
98. Block Exemptions
99. The Competition Council may, in accordance with the requirements Community law, adopt rules for application of block exemptions for certain categories of State aid (small or medium-sized enterprises, research, environmental protection, employment, training, and regional development) where State aid shall not be subject to the notification requirements of Article 14 of this Law.
100. In formulating the conditions for application of block exemptions, the Competition Council shall specify: 1) the purpose of the aid; 2) the categories of recipients of aid; 3) the maximum amount and intensity of State aid granted to one recipient; 4) the conditions governing the cumulation of aid where aid is granted from several financial sources or where several types of aid are used; 5) the conditions of monitoring of aid. Article
101. Assessment of State Aid by the Competition Council
102. The Competition Council shall examine the notification of new and existing State aid, also the unnotified State aid in violation of the requirements of Article 14 of this Law but which has been detected, and shall determine whether the State aid complies with the provisions of the Europe Agreement, this Law and other legal acts, and shall take a decision in the manner prescribed by the Competition Council: 1) to authorise State aid ; 2) to authorise state subject to certain conditions; 3) not to authorise State aid because of its non-compliance with the provisions of the Europe Agreement, this Law and other legal acts.
103. Where the Competition Council does not take a decision within the period laid down by itself, the provider of State aid may start putting new aid into effect or continue the implementation of existing aid after giving the Competition Council prior notice thereof. Article
104. Powers of the Competition Council
105. The Competition Council: 1) upon notification of State aid, may act on its own initiative or following the receipt of complaint lodged by the third parties; 2) shall have the right to obtain from the providers and recipients of State aid all the information necessary for the assessment of State aid ; 3) shall determine the type and nature of State aid (new aid, existing aid or unnotified aid) on the basis of the information obtained and in accordance with this Law; 4) in order to determine the economic situation in different regions may draw up a map of the social and economic condition of the country on the basis of the data of the Department of Statistics under the Government of the Republic of Lithuania. The map shall be drawn up on the basis of the GDP per capita, and on the basis of other specifically selected criteria reflecting the social and economic condition of the regions. In accordance with this map the Competition Council, with the consent of the Government of the Republic of Lithuania or a body authorised by it, shall determine the maximum intensity of State aid provided to each region. The map shall be revised every three years; 5) may require that, pursuant to paragraph 1, Article 18 of this Law, providers of State aid do not provide aid temporarily before the Competition Council has taken a decision authorising such aid; 6) shall have the right to require that the provider of State aid, with account of the conditions specified in the decision of the Competition Council, change his decision to grant State aid or revoke a decision taken pursuant to subparagraphs 2 and 3, paragraph 1 of Article 18 of this Law; 7) may require suspension of State aid and require to recover State aid if the provider of State aid is granting it in contravention of paragraph 7, Article 14 of this Law or of decisions of the Competition Council taken pursuant to subparagraphs 2 and 3, paragraph 1, Article 18 of this Law, or if the provider of State aid is not complying with the instruction of the Competition Council to suspend State aid provisionally; 8) may appeal to the Higher Administrative Tribunal against the actions of the provider of State aid when he fails to comply with the decision of the Competition Council to suspend or recover State aid .
106. Decisions of the Competition Council referred to in paragraph 1, Article 18 of this Law shall enter into effect on the next day after the publication of their operative part in the “Valstybės žinios” (Official Gazette). CHAPTER IV THE RIGHT OF APPEAL TO COURT BY THIRD PARTIES Article
107. Appeal against Decisions of the Competition Council
108. Providers and recipients of State aid as well as third parties shall have the right to appeal the decisions of the Competition Council to the Higher Administrative Tribunal.
109. The written complaint shall be lodged within 20 days following the publication of the operative part of decisions by the Competition Council in the “Valstybės žinios” (Official Gazette). Article
110. Compensation for Damage Damage caused to undertakings due to unlawful State aid shall be compensated for in the manner established by law. CHAPTER V FINAL PROVISIONS Article
111. Effectiveness of Other Legal Acts Within 3 months following entry into force of this Law, the Competition Council shall prepare and approve the procedure of assessment of State aid and the format of annual reports. Prior to entry into force of this procedure, monitoring of State aid shall be carried out by the Competition Council in accordance with the time limits laid down in April 30, 1999 Resolution No 505 of the Government of Lithuania “On the Approval of the Monitoring of State Aid Procedure” and on the basis of the State aid notification and annual report formats established by the Competition Council. I promulgate this Law passed by the Seimas PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS …………………………………………………………………………….