Major move forward for the state aid regime

As part of its ongoing State Aid Modernisation initiative, the European Commission recently published amendments to the state aid Enabling Regulation (Council Regulation 994/98) and the state aid Procedural Regulation (Council Regulation 659/99) in the Official Journal. These amended Regulations both came into force on 20 August 2013.

The Enabling Regulation gives the commission power to declare that certain categories of aid should be compatible with the internal market and therefore not subject to notification requirements under the Treaty of the Functioning on the European Union, while the Procedural Regulation sets out the rules and procedures to deal with such cases. As part of its State Aid Modernisation initiative, the commission has been keen to review these regulations as it looks to increase the types of aid that could benefit from simplified control (without weakening the position on supervision) and modernise procedure. As a result, the following changes have been made.

The amended regulation has been extended and will now cover, among others, the following new categories of aid in favour of: social aid for transport for residents of remote regions; conservation of marine and freshwater biological resources; certain broadband infrastructure; innovation; culture and heritage conservation and sports; and multifunctional infrastructure…

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