‘State aid’ is transfers of public resources to specific businesses or productions, aimed at solving particular critical issues or encouraging development in certain sectors. This aid may include direct grants, tax breaks, soft loans, and other forms of economic support. The rules and limits for state aid are established by the European Union, which ensures that the conditions of competition in the single market are not distorted
.
What is included in state aid
State aid can take different forms, including:
- Direct grants
- Tax breaks
- Concessional loans
- Reductions in fees or market prices
News 2024
In 2024, the European Commission approved an Italian aid scheme for renewable energy. This scheme aims to support the production of 4,590 MW of new electricity capacity from renewable sources, in line with the European Green Deal and the RepowerEU plan. The scheme, financed through a levy from consumers’ electricity bills, will be in effect until 31
December 2028.
Types of State aid
State aid is divided into three main categories:
- Non-emergency aid with the obligation to notify the EU: These require prior authorization from the European Commission to ensure that they do not distort competition.
- Non-emergency aid without notification to the EU: Some aid is exempt from notification, such as aid for regional development, research and development, environmental protection and SMEs, as long as it complies with certain limits.
- Emergency aid: Designed for crisis situations, such as the Covid emergency or the war in Ukraine, this aid may be granted in derogation from ordinary rules.
State aid with the obligation to notify the EU
Non-emergency state aid that requires notification must be authorized by the European Union. This aid must:
- Allow us to achieve objectives of common interest.
- Be the right tool to correct market failures without distorting competition.
State aid without notification
Some State aid is exempt from the notification requirement, such as those intended for regional development, research, employment, training and environmental protection, provided that it complies with established limits. De minimis aid, for example, must not exceed 200,000 euros in three years for a company, with different thresholds for specific sectors
.
Emergency State Aid
Emergency state aid is designed to deal with temporary and urgent crises. During the Covid emergency and the war in Ukraine, the EU authorized special derogations to support the economic fabric. This aid includes direct grants, tax breaks, soft loans, and cash support. The deadline for these grants has been extended until 30 June 2024
.
National Register of State Aid
The National Register of State Aid is a fundamental tool for ensuring transparency and compliance with EU rules. Operating since 2017, it allows you to monitor the aid granted and verify that the expected ceilings are not exceeded. Responsible authorities and grantors must be accredited to access the Register and manage aid
.
How to verify state aid
It is possible to verify the State aid granted through the National Register of State Aid, managed by the Ministry of Enterprises and Made in Italy. The service offers detailed research on authorized aid, with the possibility of consulting specific information after registration.
Regulatory references
The main regulations governing state aid include the Treaty on the Functioning of the European Union, the GBER Regulation 651/2014, the De Minimis Regulation 1407/2013 and communications from the European Commission relating to the Temporary Framework and emergency measures.
Conclusions
State aid is crucial for supporting the economy and fostering development in key sectors. It is important that businesses understand the rules and limitations of this aid in order to be able to use it properly and benefit from
the opportunities offered.