What is de minimis state aid rules?
The de minimis regulation recognises that some State Aids are too insignificant in size to be a concern. The limit for de minimis is €200K over any rolling three year period for any one business.
What is horizontal state aid?
Horizontal State aid rules The categories are aimed at solving problems that may arise in any industry and country: Regional Aid. Research and development and innovation. Aid for Environmental Protection and Energy. Training aid.
What is indirect state aid?
state aid. Indirect state aid (or second level state aid) occurs when the final recipient of the programme funds is not the Beneficiary of the project but a third entity carrying out economic activities. The Beneficiary of the project is then the aid granting body while the third entity is the aid’s final recipient.
What is state aid scheme?
State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU). It is anything which an undertaking (an organisation engaged in economic activity) could not get on the open market.
What is de minimis state aid threshold?
De minimis aid indeed refers to small amounts of state aid to undertakings (essentially companies) that EU countries do not have to notify the European Commission about. The maximum amount is EUR 200 000 for each undertaking over a 3-year period.
What does de minimis threshold mean?
A de minimis threshold is a value set by a country to apply customs duty and tax rates on imported goods. If the value of the shipment is below the threshold, it can be cleared without incurring customs duties or taxes.
How does State aid affect competition?
Article 107(1)2 declares that State aid, in whatever form, which could distort competition and affect trade by favouring certain undertakings or the production of certain goods, is incompatible with the common market – unless the Treaty allows otherwise.
Where does State aid originate?
State aid is exactly what it sounds like: financial aid that comes from your state instead of the federal government or a private party. State aid is usually offered to residents who are planning on attending an in-state institution, but out-of-state students may be eligible for some state-based financial aid.
Do EU State aid rules still apply?
The EU State aid rules will no longer apply to most aid provided by government departments and other public authorities in England, Scotland and Wales, unless this relates to Northern Ireland companies and is within the scope of Article 10 of the Northern Ireland Protocol.
Does State aid still apply in UK?
The previous law on State aid that applied while the UK was a member of the European Union was repealed at 11pm on 31 December 2020 by the State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 and so no longer binds UK public bodies.
Is R&D de minimis state aid?
Crucially though, the research and development expenditure credit (RDEC) is not considered state aid. And this is where you can often find a way forward that means you can make use of both types of funding.
What are the challenges of state aid law and SGEI?
Current Challenges for Responsible Authorities The link between State Aid Law and the provision of SGEI causes uncertainty among public authorities as they face a conflict of interests: On the one hand, public bodies are obligated to guarantee the supply of public services.
How do you apply the SGEI rules correctly?
Typically, the most important aspect of applying the SGEI rules correctly is to put in place an act of entrustment between the funder and the recipient.
What is SGEI and why does it matter?
This article explains the rules in broad terms. SGEI are those that can be identified as being of particular importance to the public. They are typically delivered under public service obligations because the market does not provide them to the extent desired.
Are services of general economic interest (SGEI) really exempt?
The European Commission’s rules around services of general economic interest ( SGEI) are commonly relied on as one such exemption. However, it can be tempting to use these without meeting their detailed requirements, and so create a risk of challenge that in many cases could have been avoided. This article explains the rules in broad terms.