European State Aid regulations place restrictions on the amount of public money that can be granted to private companies in order to uphold competition across the EU. As a result they have a major impact on local authority economic development and regeneration activities.
The Association monitors the impact of State Aid regulations on the ground, assists in informing European policy and provides up-to-date information on policy implications and practical approaches for local government in Wales.
State Aid regulations need to be far more proportionate, streamlined, and clearer across the whole EU. Uncertainties regarding the scope and application of regulations have acted as a major brake upon regeneration activity in deprived areas, and we fully support the European Commission's approach to simplify the regulations.
Due to the fact that there are new challenges facing the enlarged European Union, the WLGA believes that any new State Aids regime needs to be more aligned with the Lisbon Strategy and the Third Cohesion report, as State Aid control plays an important role in the contribution of both these policies throughout Europe.
General Block Exemption Regulation (GBER)
The General Block Exemption Regulation (GBER), which was formally adopted by the European Commission in July 2008 and which came into force on 29 August 2008, provides automatic approval for a range of aid measures, allowing aid administrators to grant aid without the need to notify the Commission on condition that the measures comply with the requirements set out in the regulation.
Existing block exemptions (SME, employment aid, training aid and regional aid) have been consolidated into one text under GBER with some amendments to allowable aid levels and notification thresholds allowing continuation of support in the areas of capital investment, training, research and development and SME consultancy support.
Aid schemes registered under the old block exemption ended on 31 December 2008 thus these schemes have now been brought in line with the new GBER (please see further details below).
General Block Exemption Regulation
Welsh Local Government Registered Schemes:
The links below will take you directly to the details of the three new schemes for local government registered with the European Commission in line with the new General Block Exemption Regulation (GBER) which will govern the awarding of aid from 2009 until the end of 2013:
- Welsh Local Government Support for Employment (Disadvantaged/Disabled Workers) Scheme X62/2010
- Welsh Local Government Capital Investment Aid and Employment Aid Scheme X98/2009
- Welsh Local Government SME Development Scheme X100/2009
- Welsh Local Government Training Support Scheme X97/2009
Recent briefings on State Aids:
- January 2007 - Block exemption extended
- January 2007 - Clarification of Regional aid and block exemptions working together
- January 2007 - Regional aid maps for 2007-2013 published
WLGA Consultation responses on State Aids:
- June 2007 - Environmental Aid Guidelines
- May 2007 - General Block Exemption Regulation
State Aid links:
- Welsh Assembly Government website on State Aids
- BERR website on State Aids
- European legislation concerning State Aids
For more information contact: Iwan Williams