On Monday 19 April, the European Commission presented revised EU guidelines on regional State Aid (the “Regional Aid Guidelines”), which will enter into force on 1 January 2022.
the adjustments are intended to simplify and reflect experience gained from the application of the previous rules, as well as to reflect new policy priorities (the European Green Deal and the European Industrial and Digital Strategies).
Key elements of the revised Guidelines are:
- increased overall regional aid coverage to 48% of the EU population (previously 47%) and updated list of assisted ‘a’-areas and predefined ‘c’-areas based on the latest available Eurostat statistics on GDP (2016-2018) and unemployment (2017-2019). The assignment criteria for assisted areas remain unchanged. Member States will have increased flexibility to assign so-called “non-predefined ‘c’-areas” on the maps: in addition to the criteria which were already in place, the Commission introduced a simplification to allow Member States to easily assign the non-predefined ‘c’-area qualification to Just Transition Areas, which are facing particular transition challenges;
- maximum aid intensities are increased by enabling additional incentives for investments in the disadvantaged areas of the EU. The guidelines provide for an increase in aid intensity bonuses in several situations (outermost regions, border areas and Just Transition Areas located in the most disadvantaged areas and for areas experiencing a population loss). SMEs continue to benefit from higher maximum aid intensities;
- the regional aid maps are valid for the period 2022-2027 (mid-term review in 2023).
A general simplification of the structure of the Guidelines, a clarification of some definitions and terminology and targeted changes are introduced in light of the European Green Deal and the EU’s Industrial and Digital Strategies.
For more information: https://bit.ly/3eiCgDg (Original version in French by Lionel Changeur)