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Brussels, |
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Competition for Regional development
REGIONAL & URBAN DEVELOPMENT POLICY
Cohesion and regional policy financing within the EU must adhere to state aid rules as outlined in Article 107 of the Treaty on the Functioning of the European Union (TFEU). Article 107 prohibits state aid measures that:
Exemption Clauses
These exemptions are detailed in the regional state aid guidelines, which outline the maximum permitted grant rates for certain designated regions.
In the context of the current financial and economic crisis, the European economic recovery plan includes a temporary framework that simplifies the rules governing state aid schemes co-financed by cohesion policy. This means that, in some cases, advances to state aid schemes could be reimbursed up to 100%.
- Involve a transfer of state resources.
- Provide an economic advantage to businesses.
- Distort competition by selectively favoring certain beneficiaries.
- Affect trade between EU countries.
Exemption Clauses
- Article 107(3)(a): Permits aid to promote economic development in areas where living standards are abnormally low or where there is serious underemployment.
- Article 107(3)(c): Allows aid to facilitate the development of specific economic activities, provided it does not adversely affect trading conditions contrary to the common interest.
These exemptions are detailed in the regional state aid guidelines, which outline the maximum permitted grant rates for certain designated regions.
In the context of the current financial and economic crisis, the European economic recovery plan includes a temporary framework that simplifies the rules governing state aid schemes co-financed by cohesion policy. This means that, in some cases, advances to state aid schemes could be reimbursed up to 100%.
