Overview
Simon Hirsbrunner was quoted in an article published in the French-Language newspaper Le Temps. The February 9 article cites Mr. Hirsbrunner on the huge gap between the EU ban on state aid and the subsidy policies applied by the Swiss public authorities at all levels of administration. To reconcile positions, the European Commission suggested to have an independent federal institution monitor the application of state aid rules in Switzerland. The Swiss cantons and the communes fear that this arrangement might jeopardize their sovereignty in favor of the Swiss federal state. Mr. Hirsbrunner pointed out that a ban of state aid is often problematic for small public entities that do not master its mechanisms. It has had a huge impact on the French, German and Austrian municipalities, which have lost their leverage in local investment projects. In Mr. Hirsbrunner’s view, even though it is impossible to predict which cantonal and municipal practices would be considered illegal under European state aid law, the alpine regions would be exposed with subsidies in the hydroelectric power sector particularly at risk. He added that the introduction of state aid rules in Switzerland would be tantamount to embarking on a ship without a rudder.
The full article is available to read in French at Le Temps.