Irish Regions Office Website

July 21, 2008

Changes in State Aid

A newly-approved General Block Exemption Regulation (GBER) adopted on 7 July will allow Member States the freedom to grant a host of aid measures without first notifying the Commission. 26 categories of aid focussed on job creation and competitiveness as well as reducing the administrative burden for businesses and public authorities - have been designated. All are applicable to small and medium-sized enterprises (SMEs) and indeed preferential ‘‘top-ups’’ apply to SMEs in instances where larger firms are also deemed eligible beneficiaries. This initiative is in line with both the Commission’s 2005 State Aid Action Plan which aims to create a coherent, and user-friendly set of rules for aid and with provisions allowing Member States to support SME development under the new Small Business Act (see above). The Regulation authorises aid in favour of regional investment and employment; research and development – particularly in the agricultural and fisheries sectors; training initiatives; technical feasibility studies; risk capital; and wage subsidies for the employment of disabled/ disadvantaged workers. Aid measures promoting entrepreneurship such as support for young innovative enterprises, newly created small businesses in assisted regions, innovation advisory and support services, and tackling difficulties faced by female entrepreneurs are also now authorised. Additionally the Regulation offers an environmental dividend by exempting from notification a varied set of subsidies promoting environmental protection (including investment towards the attainment of standards) and energy generation/saving. Further details: http://ec.europa.eu/comm/competition/state_aid/reform/reform.cfm

Posted by iroronan at July 21, 2008 03:36 PM