Brussels, 31 May 2024
The European Commission has adopted an amendment to the Guidelines on Regional State aid (‘RAG’) to allow Member States to grant higher amounts of regional aid for investment projects covered by the Strategic Technologies for Europe Platform (‘STEP’). The STEP aims to support the development and manufacturing of critical technologies relevant to the EU green and digital transitions, as well as the EU’s strategic sovereignty.
The amendment to the Regional Aid Guidelines
Regional aid is an important instrument used by Member States to enhance regional development.
The RAG set out the rules under which Member States can grant State aid to companies to support investments in the less advantaged regions of Europe. Member States notify regional maps, which are assessed and approved by the Commission, defining the regions where regional investment aid is allowed and establishing the maximum amount of State aid that can be granted, expressed as a percentage of eligible investment costs.
Today’s amendment allows Member States to amend their regional aid maps to allow increased levels of regional aid for investment projects covered by the STEP by up to:
- 10 percentage points in the regions eligible for aid under Article 107(3)(a) of the Treaty on the Functioning of the European Union (so-called ‘a’ areas); and
- 5 percentage points in the regions eligible for aid under Article 107(3)(c) of the Treaty on the Functioning of the European Union (so-called ‘c’ areas).
Background
Europe is characterised by significant regional disparities in terms of economic well-being, income and unemployment. Regional aid aims to support economic development in disadvantaged areas of Europe, while ensuring a level playing field between Member States.
On 19 April 2021, the Commission adopted the revised EU guidelines on regional State aid that entered into force on 1 January 2022.
In the RAG, the Commission sets out the conditions under which regional aid may be considered to be compatible with the internal market and establishes the criteria for identifying the areas that fulfil the conditions of Article 107(3)(a) and (c) of the Treaty on the Functioning of the European Union (‘a’ and ‘c’ areas, respectively). On that basis, the Commission approved the notified regional aid maps where Member States identified in which geographical areas companies can receive regional State aid (assisted areas) and at what level (aid intensity).
On 20 June 2023, the Commission proposed the Strategic Technologies for Europe Platform to enhance EU industrial competitiveness by focusing on projects in the development and manufacturing stages in critical technologies, in the fields of digital technologies and deep tech innovation, clean technologies and biotechnologies, for a sustainable and competitive future. he Regulation establishing the STEP entered into force on 1 March 2024.
Quote(s)
Today’s amendment to the Guidelines on Regional State aid will allow Member States to increase support for investments in critical technologies in the less advantaged European regions. This will enable investments in clean tech, bio tech, digital and deep tech that are key to strengthen Europe’s competitiveness, whilst preserving cohesion objectives.
Margrethe Vestager, Executive Vice-President in charge of competition policy
Source – EU Commission