The Netherlands, the Czech Republic, Germany, Latvia, Luxembourg, Poland, Slovakia and Spain will use the ‘Competitiveness’ Council meeting on Thursday 28 May to address the issue of undertakings in difficulty and how they are taken into account in the ongoing revision of the EU State aid framework, notably the General Block Exemption Regulation (GBER).
According to a public note dated 27 May, the Netherlands initiated and co-ordinated a group of seven other Member States, calling for a revision of the definition of ‘undertakings in difficulty’ (UID).
“The main problem lies in the unintended consequences of the current definition of UID for undertakings such as SMEs, start-ups, scale-ups, particularly advanced technology undertakings, and social enterprises”, these countries say.
“Start-ups and scale-ups are often classified as ‘undertakings in difficulty’, despite strong long-term economic and often strategic potential, illustrated in particular by their ability to raise substantial investment, including quasi-equity. The current rules create unnecessary administrative complexity, both for undertakings and for the competent authorities.”
A revision of the current definition of UID should therefore help strengthen Europe’s competitiveness, innovation and strategic autonomy, according to the signatories.
They propose, among other things, new definitions for undertakings not financed by equity, notably in order to assess accurately an undertaking’s financial viability.
Portugal and Latvia will also speak on the General Block Exemption Regulation. The Commission will also explain its plans.
Link to the note: https://aeur.eu/f/m2e (Original version in French by Solenn Paulic)