The European Commission has adopted and published amendments to the rules on de minimis State aid for companies in the form of two new regulations. For more on the revised rules and their practical implications, read on here.
Under the State aid de minimis regime, Member States are allowed to grant small amounts of aid exempt from EU State aid control. There are currently two de minimis State aid regulations, but they are both of them set to expire by 31 December 2023.
The European Commission has decided to adopt two new regulations to replace them, revising and amending the rules in the process. Among the changes introduced are an increase in the ceiling for de minimis State aid and the introduction of a central register in which Member States must register de minimis aid. The new regulations have yet to be issued regulation numbers but will take effect on 1 January 2023 and will apply until 31 December 2030.
What is new in the revised regulations?
Our comments
The recently adopted changes to the de minimis State aid regime will be effective from January 2024 and are set to remain in force for seven years. The most significant change is the increased thresholds, which significantly increases the cap on the amount of aid per company over a three-year period. During the process, there were considerations about raising the ceiling further. The AECM (European Association of Guarantee Institutions), for example, argued for raising the ceiling to EUR 500,000 for ordinary de minimis aid, but in the end a smaller increase was adopted.
Also of interest, from a practical perspective, is the swapping of the "solemn declarations" for a centralised register in which grants of de minimis aid are to be registered. The change is expected to make the practical administration of the regime more uniform and to enhance transparency and control with this type of aid.
The raising of the thresholds does not make it any less important for public bodies and private enterprises to be vigilant and mindful of the thresholds for granting and accepting State aid. Any failure to comply with the rules, whether substantive or procedural, can lead to demands for repayment of aid received unlawfully, including demands for payment of substantial illegality interest. Even recipients of de minimis aid therefore have every interest in ensuring compliance with the new rules, including the registration obligation.