Brussels, 12/12/2006 (Agence Europe) - The Commission has adopted a regulation exempting small subsidies from having to be notified to the Commission in advance for clearance. This new regulation allows for aid not exceeding €200,000, granted over aperiod of three years, not to be considered as state aid. Loan guarantees will also be covered as long as the guaranteed part of the loan does not go above €1.5 million. The regulation will come into effect in January 2007, when the previous regulation expires.
SME representatives have expressed satisfaction with the regulation which is “perfectly in line with the spirit of the EC State Aid Action Plan”, according to a press release from the European Association of Craft, Small and Medium-sized Enterprises (UEAPME). The aim is to simplify the management of aid granted by States to SMEs and to lighten the administrative burden on Brussels. These objectives will be backed up by the group exemption regulation currently being drawn up and expected for the start of next year. (cd)