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Europe Daily Bulletin No. 10890
Contents Publication in full By article 22 / 36
ECONOMY - FINANCE - BUSINESS / (ae) competition

Consultation on reform of de minimis regulation

Brussels, 17/07/2013 (Agence Europe) - After amendments resulting from a public consultation in March 2013, the European Commission decided on Wednesday 17 July to invite comments on a second draft for a revised regulation on small state aid amounts (known as “de minimis” aid). According to this regulation, aid measures below a certain ceiling will not constitute state aid in the meaning of EU rules because they have no impact on competition and trade in the internal market (the current cap is €200,000) and measures that fulfil the criteria of the regulation therefore will not need to be notified to the Commission for approval before they are implemented.

Comments can be submitted until 9 September 2013. In light of the submissions, the Commission will then adopt a new regulation at the end of 2013. The review is part of the Commission's state aid modernisation initiative.

The Regulation has greatly simplified the treatment of small aid measures and has given legal certainty to granting authorities and aid beneficiaries. The Commission explains in a press release, however, that “it has to strike the right balance between simplification, on the one hand, and avoiding competition distortions in the internal market and promoting efficient public spending, on the other hand”.

Main elements of the revision

The proposal maintains the current ceiling of €200,000 over three years. On the basis of the Commission's experience and all data gathered so far, including through public consultations, there is no indication that a higher ceiling would be justified. Above that level, aid may have an impact on competition in the internal market. This is all the more true in times of crisis when member states have uneven spending capacity. The Commission will further analyse this question in the on-going review process, which includes an impact assessment.

Furthermore, the Commission proposes to introduce a compulsory de minimis register. This would be an indispensable tool for ensuring that the ceiling is respected and for gathering data on the use of de minimis aid. A suitable transitional period is envisaged for the set up.

The draft also substantially clarifies and simplifies the rules, in line with recurring requests from stakeholders. For example, it introduces a safe-harbour for loans up to €1 million and simplifies the definition of “undertaking” in order to increase legal certainty and reduce the administrative burden. (LC/transl.fl)

 

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