EU Adopts Revised Regulations on Small Amounts of Aid

The European Commission has adopted two regulatory amendments that will reshape the landscape of small amounts of aid. The revised regulations, affecting both the general de minimis Regulation and aid for Services of General Economic Interest (SGEI de minimis Regulation), are set to come into force on January 1, 2024, and will be effective until December 31, 2030.

Executive Vice President Margrethe Vestager, responsible for competition policy, highlighted the key changes aimed at enhancing the efficiency and fairness of the aid distribution process. “The revised de minimis regulations raise the exemption ceilings to cater for inflation, making it easier and faster to provide small amounts of aid. The revised rules will also introduce a central register to facilitate the control of the de minimis ceilings,” said Vestager.

One of the primary modifications is the adjustment of exemption ceilings to account for inflation, ensuring that they remain relevant and effective. This move is expected to streamline the process of providing small amounts of aid, acknowledging the evolving economic landscape.

A notable feature of the revised regulations is the introduction of a central register to enhance the control of de minimis ceilings. This innovative measure is designed to reduce the administrative burden on businesses, particularly Small and Medium-sized Enterprises (SMEs). The central register will play a pivotal role in monitoring compliance, relieving businesses from the need for extensive self-monitoring.

The changes are strategically aimed at empowering SMEs by eliminating the necessity for self-monitoring compliance. Recognizing the challenges faced by these enterprises with limited resources, the European Commission seeks to create an environment that allows businesses to concentrate on their core activities, thereby promoting economic growth.

Executive Vice President Margrethe Vestager underscored the importance of maintaining fair competition in the Single Market. The revised regulations strike a balance between providing assistance to businesses and preventing unfair advantages, fostering a level playing field that encourages innovation, efficiency, and healthy competition among market participants.

Source: EU Reporter