The European Commission has approved a new set of guidelines on regional aid for the period between 2014 and 2020 (the "Regional Aid Guidelines"). Regional aid covers operating and investment aid granted by public authorities to enterprises in Europe's most disadvantaged regions and regions undergoing economic restructuring. With this aid, investment, job creation and economic growth is supported in such areas.
Following two rounds of public consultations in January 2012 and January 2013, the European Commission has now adopted the Regional Aid Guidelines which enter into force on 1 July 2014 as the current rules expire by mid 2014. The new rules are in line with the European Commission's envisaged modernisation of state aid control, focussing on enhanced scrutiny with respect to cases with the biggest impact on competition, a streamlining of the rules and a faster decision-making process.
In particular, the Regional Aid Guidelines exempt more aid categories from mandatory prior notification to the European Commission, allowing Member States to spend smaller aid amounts without high administrative burden. On the contrary, large aid measures (as defined in paragraph 20 (n) of the Regional Aid Guidelines) will be subject to an in-depth assessment by the European Commission.
Moreover, the overall share of regions eligible for regional aid will increase from the current level of 46.1% to 47.2 % of the European population. Whilst the Regional Aid Guidelines develop a stricter approach on aid for investments made by large enterprises in more developed areas, state aid will be easier available to companies operating in outermost regions and sparsely populated areas. The provisions in relation to anti-relocation are also strengthened. Aid can under no circumstances be compatible with the internal market if a causal link can be established between (i) the relocation of the same or a similar activity from an area in the EEA to another region within the EEA and (ii) the grant of aid in the latter region.
The least developed regions will benefit from unchanged maximum levels of aid. For other assisted regions, however, the maximum levels are lowered. Finally, the obligation for Member States to publish online the amount and the beneficiary of the regional aid granted is aimed at enhancing transparency and accountability.
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