EU clears national aid linked to EU funded programmes from state aid checks

The Council today adopted a regulation that enables the Commission to exempt two additional categories of national subsidies from the standard checks required under EU i state aid rules.

The two new categories are :

• a) 

  national funds combined with EU centrally managed funds, such as the InvestEU Fund or 'Seal of Excellence' projects provided for by the next framework programme on research and innovation;

• b) 

  national funds for projects supported by EU European Territorial Cooperation programmes.

The new rules will significantly simplify the national financing of projects co-financed by the new EU funds provided for by the next multiannual financial framework.

The adopted regulation will improve the interaction of EU funding programmes with state aid rules. It will enable the Commission to make targeted modifications to its general block exemption regulation so that nationally managed funds and centrally managed EU funds can be combined as smoothly as possible, without having to prove that they do not distort competition in the single market.

The regulation will apply as from the twentieth day after its publication in the Official Journal.

The new rules will be part of the so-called 'enabling regulation', which constitutes the legal basis for the Commission declaring certain categories of aid compatible with the internal market and enabling member states to directly finance certain projects without prior Commission approval.

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