Brussels, 06/12/2000 (Agence Europe) - For the first time, the European Commission has used its ability to decide on "group exemptions" in the aid sector of Member States, deciding that the latter will not have to notify certain types of aid; they are authorised a priori. The group exemption is an instrument by which the Commission decides that certain agreements are automatically exempt from the implementation of rules of competition; the Commission has been using it since the 60s for certain types of concerted agreements. This time, it is using it for:
State aid to small and medium-sized enterprises (SMEs). The regulation defines the medium-sized enterprises (less than 250 employees, turnover not exceeding 40 million euro or annual balance sheet not exceeding 27 million euro) and small enterprises (fewer than 50 people, turnover not exceeding 7 million or annual balance sheet not exceeding 5 million euro) and sets out the type of aid authorised a priori. They must cover the investments in land, buildings, equipment, etc., or spending linked to the transfer of technology or the sharing of knowledge, training, etc. The amount of aid allowed varies according to the region and according to the type of aid. They go from 7.5% of costs for investment aid up to 50% for training, knowledge sharing and consulting aid
training aid. These are largely legal, to cover training (in the company or in training centres), the costs linked to teachers, current expenditure, etc. Even large companies can benefit from aid, up to 25% of admissible costs. The standard rates are increased for SMEs, the poorest regions, and disadvantaged workers.
De Minimis aid. Already now, aid below a certain ceiling (EUR 100,000 per company over a three year period) are authorised automatically. The new regulation gives a legal solid basis to the present rule.
Three regulations will enter into force 20 days after their publication in the Official Journal and will be applicable until 31 December 2006. The Member States will be able to grant targeted aids without having to notify them nor await the Commission's authorisation to grant them. The Commission services will be freed from the heavy and unnecessary administrative burden of examining cases of aid whose compatibility with the common market does not pose, in general any problem, and could concentrate on the major cases. If one Member State makes illegal use of these regulations, the competitors of the beneficiary companies will be able to address the Commission over the application of exemptions per category, and their reports will be accessible to other Member States.
The Commission, before deliberating (basing itself on the simplification regulation of 7 May 1996) consulted in an in-depth manner the Member States.