The European Commission has adopted and published amendments to the rules on de minimis State aid for companies in the form of two new regulations. For more on the revised rules and their practical implications, read on here.

Under the State aid de minimis regime, Member States are allowed to grant small amounts of aid exempt from EU State aid control. There are currently two de minimis State aid regulations, but they are both of them set to expire by 31 December 2023.

The European Commission has decided to adopt two new regulations to replace them, revising and amending the rules in the process. Among the changes introduced are an increase in the ceiling for de minimis State aid and the introduction of a central register in which Member States must register de minimis aid. The new regulations have yet to be issued regulation numbers but will take effect on 1 January 2023 and will apply until 31 December 2030.

What is new in the revised regulations?

The current de minimis Regulation exempts from the general requirement of notification and approval of State aid amounts that are deemed to have no adverse impact on competition. With the new de minimis regulation, the European Commission has adopted the following changes to the current rules:

  • The ceiling for de minimis aid will be increased from EUR 200,000 per company over a three-year period (in force since 2008) to EUR 300,000, in order to cater for inflation.
  • Member States will be under an obligation to register de minimis aid in a central register set at national or EU level as of 1 January 2026, aiming to reduce reporting obligations for companies. Intended to simplify the documentation requirement, the new register replaces the previous obligation to obtain a "solemn declaration" from the beneficiary, though not until three years after the new register has been established. The Commission will set up a central register, and Member States will also be able to set up national registers of their own. Member States using a national register will be required annually to submit aggregated data to the Commission on all de minimis aid granted in the previous year.
  • De minimis aid 'safe harbours' will be introduced for financial intermediaries to further facilitate aid in the form of loans and guarantees. It must be ensured in this connection that the relevant intermediaries do not thereby themselves receive State aid. Until now, this has been achieved by requiring them to pass on all benefits received. Under the new rules, it will be considered achieved if the total loan portfolio does not exceed certain thresholds.

The other de minimis regulation, the SGEI de minimis regulation, specifically concerns de minimis aid to providers of so-called Services of General Economic Interest. These include, among other entities, providers of public transport and healthcare providers, subject to certain conditions, as even in their cases it will be subject to assessment if they qualify as SGEIs for purposes of State aid law. In this regulation, the main changes are the following:

  • An increase of the ceiling for lawful aid per company from EUR 500,000 (in force since 2012) to EUR 750,000 over three years, also to cater for inflation.
  • A corresponding obligation for Member States to register de minimis aid in a central register set at national or EU level as of 1 January 2026 to reduce reporting obligations for companies.

Our comments

The recently adopted changes to the de minimis State aid regime will be effective from January 2024 and are set to remain in force for seven years. The most significant change is the increased thresholds, which significantly increases the cap on the amount of aid per company over a three-year period. During the process, there were considerations about raising the ceiling further. The AECM (European Association of Guarantee Institutions), for example, argued for raising the ceiling to EUR 500,000 for ordinary de minimis aid, but in the end a smaller increase was adopted.

Also of interest, from a practical perspective, is the swapping of the "solemn declarations" for a centralised register in which grants of de minimis aid are to be registered. The change is expected to make the practical administration of the regime more uniform and to enhance transparency and control with this type of aid.

The raising of the thresholds does not make it any less important for public bodies and private enterprises to be vigilant and mindful of the thresholds for granting and accepting State aid. Any failure to comply with the rules, whether substantive or procedural, can lead to demands for repayment of aid received unlawfully, including demands for payment of substantial illegality interest. Even recipients of de minimis aid therefore have every interest in ensuring compliance with the new rules, including the registration obligation.

De minimis and SGEI de minimis Regulation (europa.eu).

Link to new de minimis regulations (all languages).

Link to new SGEI de minimis regulation (all languages).

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