European Commission adopts revised state aid de minimis regulation

The European Commission last month adopted a revised regulation on small aid amounts that fall outside the scope of EU state aid control.

The main criteria of the current regulation ­– exempting aid amounts up to €200,000 per undertaking over a three-year period – remains unchanged.

There was no evidence after three public consultations that a higher ceiling would be justified, the Commission said.

The monitoring system of de minimis measures – allowing member states the choice between a declaration of the aid by beneficiaries or a central register – has also been left unchanged.

Many member states had suggested that a mandatory register would entail a significant administrative burden, especially during the set-up phase. The Commission will instead study such a register’s feasibility first.

However, Brussels has sought to simplify the treatment of small aid measures.

In this respect:

  • Companies undergoing financial difficulties are no longer excluded from the scope of the regulation and will therefore be allowed to receive de minimis aid;
  • The definition of what constitutes an ‘undertaking’ has been simplified and clarified;
  • Subsidised loans of up to €1m may also benefit from the de minimis regulation if certain conditions are met.

Measures that fulfil the criteria of the revised regulation do not constitute "state aid" in the meaning of EU rules and therefore do not need to be notified to the Commission for approval before they are implemented.

The text of the revised regulation can be viewed here.

The reform – part of the state aid modernisation intiative – “will significantly reduce the administrative burden for companies and member states”, the Commission said.

As part of the initiative Brussels is also reviewing instruments such as the General Block Exemption Regulation and most of its guidelines.