European State Aid Law11.01.2024 Newsletter
Important changes in state aid law: an overview of the new de minimis regulations
State subsidies from EU member states are subject to EU state aid law (Art. 107 et seq. TFEU). According to this, state aid is generally prohibited as it can distort competition. It can only be justified in exceptional cases. State aid is therefore subject to a so-called "notification and standstill requirement". This means that state aid must be notified to the EU Commission by the member states and may only be implemented once the EU Commission has authorised it.
However, there are exceptions to this "notification and standstill requirement". For example, small amounts of aid are exempt from this notification requirement. Because of their low volume, it is assumed that they do not affect competition and trade in the internal market. The EU's de minimis regulations define what constitutes such minor aid (de minimis aid).
With the expiry of the de minimis regulations (Regulation (EU) No 1407/2013 and Regulation (EU) No 360/2012) on 31 December 2023, two new de minimis regulations entered into force on 1 January 2024 containing amendments to the general rules for de minimis aid and the rules for de minimis aid for services of general economic interest (SGEI).
Below, we are providing you an overview of the changes in the new de minimis regulations.
New regulation on general de minimis aid
(Link to the de minimis regulation of 13 December 2023)
A significant - if not the most important - change as of 1 January 2024 is the increase in the maximum amounts for de minimis aid from the previous EUR 200,000 to EUR 300,000. This means that a company can receive aid totalling up to EUR 300,000 per member state over a period of three years without the notification requirement applying.
In addition, the maximum amount of de minimis aid of EUR 100,000 for companies operating in commercial road freight transport was completely abolished on 1 January 2024, meaning that in future, aid for these companies up to an amount of EUR 300,000 over a period of three years does not have to be notified.
Another significant change is the introduction of a central register in which information on de minimis aid granted is to be recorded. From 1 January 2026, member states must ensure that the aid recipient, the aid amount, the date of granting, the granting authority, the aid instrument and the economic sector concerned are recorded in such a register. Such a register must be set up by the member states at national level. Alternatively, from 1 January 2026 the member states can use a register provided by the EU Commission.
The new de minimis regulation also includes a new paragraph in Article 4 containing precise rules on state aid and financial intermediaries.
New de minimis regulation for companies providing services of general economic interest (SGEI)
(Link to the SGEI de minimis regulation of 13 December 2023)
The SGEI de minimis regulation also contains amendments that essentially correspond to the amendments to the general de minimis regulation. The SGEI de minimis regulation applies to stateaid to companies that provide services of general economic interest. These are public services in particular.
The maximum amounts of de minimis aid in the area of SGEI services is also being increased from 1 January 2024. Companies may now be granted a total of up to EUR 750,000 in SGEI aid by a member state over a period of three years as opposed to the previous EUR 500,000.
In addition, member states must also record SGEI de minimis aid in a central register from 1 January 2026.
We will keep you informed. Further information on our advice in the area of state aid law can be found here.