In large measure, the objectives of the individual State Aid rules have proved to be fit for purpose within the EU, but they do not fully reflect recent developments in EU policies and the Commission’s priorities for the future, particularly the ‘Green Deal’ and Digital and Industrial Strategies: this is the main lesson that can be taken from the European Commission Staff Working Document, published on Friday 30 October, that summarises the results of an evaluation of the State Aid rules adopted as part of the State Aid Modernisation package.
The evaluation concludes that, overall, the State Aid control system and rules are fit for purpose.
The evaluation of the State Aid rules was launched in January 2019, in the form of a ‘fitness check’ (involving internal analyses by the Commission, public consultations and studies prepared by external consultants, etc.)
The ‘fitness check’ concludes that, overall, the State Aid rules are fit for purpose.
However, the individual rules need revisions, including clarifications, further streamlining and simplification, as well as adjustments to reflect recent legislative developments, current priorities, changes in markets and technological developments.
For example, the Commission will propose clarifications and simplifications to the practical application of certain provisions, such as how to calculate indirect eligible costs for research and development projects in a simplified manner.
With regard to Important Projects of Common European Interest (IPCEIs), it may be appropriate to facilitate SMEs’ participation in IPCEIs, both directly and indirectly.
The Commission published draft regional State Aid guidelines for consultation in July this year.
Environmental and energy rules need to be further adjusted in light of new technologies and novel support types, as well as recent legislation in this area.
The Commission believes that State Aid can, and should, contribute even further to the European Green Deal, as well as to the EU’s Digital and Industrial Strategies. In particular, the revision of the energy and environmental rules will have to facilitate appropriate measures to further promote a modern decarbonised and circular economy, while ensuring limited distortions of competition and adequate safeguards to the integrity of the single market.
The Commission plans to bring forward the review of the relevant State Aid guidelines to the end of 2021. These include the Regional Aid Guidelines, the IPCEI Communication, the Research, Development and Innovation (RDI) Framework, the Risk Finance Guidelines, the Guidelines on State Aid for Environmental Protection and Energy and relevant provisions of the General Block Exemption Regulation (GBER).
The other rules that were part of the ‘fitness check’ will be revised in the medium term. Public consultations on these rules are taking place between the second half of 2020 and the beginning of 2021.
The documents can be found at: https://bit.ly/35KRT2c (Original version in French by Lionel Changeur)