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THE EUROPEAN COMMISSION PUBLISHED THE NEW REGULATION ON GENERAL BLOCK EXEMPTION OF CERTAIN CATEGORIES OF AID

30.06.2014

The European Commission published the adopted on 17 June 2014 Commission Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty. The regulation replaces Regulation (EC) No 800/2008, which expires on 30.06.2014.

The Regulation should allow for better prioritisation of State aid enforcement activities, greater simplification and should enhance transparency, effective evaluation and the control of compliance with the State aid rules at national and Union levels, while preserving the institutional competences of the Commission and the Member States.

Aid administrators developing and implementing aid measures that strictly abide by the requirements of the Regulation will be exempt from the notification requirement and waiting for the EC approval.

Measures developed in accordance with the Regulation are subject to consultation under Article 9 of the State Aid Law.

Announcing the new measures Commission vice president Joaquín Almunia, who is responsible for competition policy, said: "These new rules will cut red tape for member states and encourage them to put in place smart aid measures which contribute to economic growth and do not harm fair competition. If Member States make full use of the possibilities for granting aid under the extended exemptions from notification, most aid measures could be immediately implemented, without prior approval from the Commission".

The Regulation enters into force on 1 July 2014 and will be applied until 31 December 2020.

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