Commission to simplify rules for small state subsidies 10-03-2006 The European Commission has made proposals to extend the scope of the “de
minimis” rule. Under this rule, subsidies of an amount smaller than 100,000
euros granted over a period of 3 years do not constitute “State Aid”. Subsidies
below that ceiling are presumed to have hardly any effect on competition and
trade between Member States. Therefore such measures do not need to be notified
to the Commission for approval. The Commission now proposes raising the “de
minimis” threshold to 150,000 euros. Aim of the proposal is to help small and
medium-sized enterprises.
The scope of the proposed regulation is limited to certain types of aid, for
which it is possible to determine in advance the precise aid amount. The
proposal also includes a number of safeguards designed to prevent abuse.
The “de minimis” proposal forms part of the Commission's implementation of
its June 2005 State Aid Action Plan. This plan outlines the guiding principles
for a comprehensive reform of state aid rules over the next five years. The aim
is to encourage member states to contribute to the strategy for growth and jobs
by reducing overall aid levels while focusing remaining aid on improving the
competitiveness of EU industry, creating sustainable jobs, ensuring social and
regional cohesion, and improving public services.
The “de minimis” proposal will be sent to the member states for a first
consultation. Further consultations are planned from June to November.
LinksSource: European Information Service back |
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