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Commission launches consultations on simplified rules for block exemptions

The Commission has presented for consultations new draft rules to exempt more subsidies from the notification obligation laid down in EC Treaty state aid rules.

The new so-called Block Exemption Regulation would on the one hand simplify and consolidate into one text five existing block exemptions for aid to SMEs, research and development aid in favour of SMEs, aid for employment, training aid and regional aid. In addition, the new Regulation would also allow the block exemption of three new types of aid: environmental aid, aid in the form of risk capital and Research and Development aid (R&D) in favour of large enterprises as well. Subsidies which fulfilled the conditions laid down in the new Regulation would be considered as compatible with state aid rules without requiring prior notification to the Commission. Following a further round of consultations, the Commission intends to adopt the final version of this regulation before the summer of 2008.

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