Proposed renewal of de minimis State aid regulation

European Commission draft regulation (8 pages, PDF) proposing to renew the assumption than, other than for transport, some agriculture activities and export-related aid, assistance from public funds that falls below a financial threshold does not affect international trade or does not distort competition, and is therefore not State aid under Article 87. An information note details the rationale of the proposal and the procedure for adoption of a new regulation.

The threshold for 2007-2013 would be euro 150,000 of aid over three years. The increase from the figure of euro 100,000 used between 2001 and 2006 is equivalent to more than 6 per cent a year, which seems somewhat greater than economic growth (given 3 per cent real growth, 2 per cent euro inflation, and the admission of new lower-GDP member states meaning that lower levels of aid may now affect cross-border trade). For non-cash aid (e.g. loan guarantees), the exemption would apply only where the financial equivalent of the aid is clear, or where the transaction as whole falls below the financial threshold.

For further information or advice please contact Franck Latrémolière.

Filed under DG Competition, State aid.

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