EU Commission Invites Comments On Revised Regional Aid Guidelines

The European Commission has launched a public consultation inviting all interested parties to comment on draft revised EU guidelines on regional State aid (the “Regional Aid Guidelines”). Stakeholders can respond to the consultation until September 30, 2020.

Executive Vice President Margrethe Vestager said, “The Regional Aid Guidelines aim to promote the economic development of disadvantaged regions in the EU, while ensuring a level playing field between member States. Regional aid is an important instrument used by member states to enhance regional development. We invite stakeholders to comment on our draft revised Guidelines which, besides the objective of regional development, will also support the twin transition to a green and digital economy.”

The Regional Aid Guidelines aim to promote the economic development of disadvantaged regions in the EU, while ensuring a level playing field between member States. Regional aid is an important instrument used by member States to enhance regional development.

The current Regional Aid Guidelines are under revision in the context of the Commission’s “fitness check” of the 2012 State aid modernization package, which aims to evaluate if the current rules are still fit for purpose.

The draft revised guidelines take into account the preliminary results of the fitness check exercise.These preliminary results show that the current Regional Aid Guidelines have worked well in principle. At the same time, the Commission is proposing a number of targeted adjustments to simplify and reflect experience gained from the application of the current rules.

Furthermore, the draft revised Guidelines reflect new policy priorities related to the European Green Deal and the European Industrial and Digital Strategy. For example, given the large investment needs for the twin transition, and to enable regions to bounce back from the economic effects of the coronavirus outbreak, the Commission is proposing to increase maximum aid intensities by enabling additional incentives for private investments in the most disadvantaged regions, while ensuring a level playing field between member States. The Commission is also proposing additional procedural simplifications for State aid to Just Transition Areas that member States are in the process of defining.

Full Content: EU Reporter

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