Proposal for a COUNCIL REGULATION amending Council Regulation (EU) 2015/1588 of 13 July 2015 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to certain categories of horizontal State aid
1. This is a legislative proposal from the European Commission (“the Commission”) to amend the Enabling Regulation Council Regulation (EU) 2105/1588.
2. The Enabling Regulation allows the Commission to declare, by means of further Commission regulations, that certain categories of State aid are compatible with the common market and are exempted from the advance notification requirement provided for in Article 108(3) of the Treaty on the Functioning of the European Union (“TFEU”). We would expect that as with other exemptions that the separate regulations which create any new exemptions will contain monitoring and reporting requirements.
3. Those categories include, for example, aid to SMEs, aid for research and development or aid for local infrastructure. The Commission now proposes to add two additional categories.
4. The proposal to include two new categories in the Enabling Regulation enables the Commission to adopt block exemptions, based on a definition of clear compatibility criteria, ensuring that the effect on competition and trade between Member States is limited. The adoption of such block exemptions would simplify the granting of aid by Member States, as measures falling within the block exemptions would not require advance notification and approval by the Commission.
5. The two categories that the Commission proposes for inclusion in the Enabling Regulation are:
• Member States’ financing channelled through or supported by EU centrally managed financial instruments or budgetary guarantees managed centrally by the Commission.