Brussels, 20/06/2013 (Agence Europe) - On Wednesday 19 June, the European Commission adopted guidelines on how member states granting state aid to companies in order to support the development of disadvantaged regions in Europe between 2014 and 2020 should draw up maps of the geographical areas for which companies can obtain investment aid, how the aid is granted and what sums are available. The new guidelines come into force on 1 July 2014 and differ from the current guidelines in the following areas: - the overall share of regions where regional aid can be granted will increase from 46.1% to 47.2 % of the EU population. At present, only about one out of four Europeans lives in less developed regions (regions with GDP below 75% of the EU average) compared to one in three at the time when the previous guidelines for 2007-2013 were adopted, but the Commission has taken account of the effects of the economic crisis and therefore increased the population coverage; - fewer aid measures will be subject to Commission scrutiny as more aid categories will be exempted from the obligation of prior notification to the Commission, with tighter scrutiny of cases likely to distort competition; - large aid measures will be subject to in-depth assessment of their incentive effect, proportionality, contribution to regional development and effects on competition. The Commission will examine such aid in detail to ensure that it is granted only and to the extent it is necessary for the investments that would not have taken place without the aid; - aid to large enterprises in transition areas with GDP of above 75% and below 90% of the EU average will only be allowed for investment that brings new economic activity, the diversification of existing establishments into new products or for new process innovation. In the poorest regions (regions below 75% of average EU GDP), the guidelines continue to allow aid for other types of investment by large companies; - the maximum levels of aid (the aid intensity) will remain unchanged at 50% for the least developed regions (with GDP of below 45% of the EU average), but will fall by 5% to 35% and 25% respectively for other aided regions (GDP of below 60% and 75% of the EU average), with flexibility for small businesses and the outermost regions. In “transition” regions with low population density, or industrial decline, and for small islands, aid intensity may not exceed 30% for small businesses and 20% for mid-cap businesses; - aid leading to relocation of an identical or similar business within the European Economic Area will be banned; - to increase transparency and accountability, member states will have to publish on the internet data on how much regional aid they grant and to whom. The current guidelines, due to expire on 31 December 2013, have been extended until 30 June 2014 to give member states time to draw up the aid maps. Member states have been given room for manoeuvre when it comes to defining aid maps that address regional disparities, such as high levels of unemployment. (FG/transl.fl)