Commission publishes De-minimis Regulation for Services of General Economic Interest

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The European Commission has adopted a De-Minimis Regulation for companies providing services of general economic interest (SGEI). This is the last pillar of a new package of state aid rules for SGEI, the bulk of which has been adopted in December 2011.

The SGEI de minimis Commission Regulation sets out the conditions under which support granted to SGEI providers does not constitute state aid within the meaning of Article 107 of the Treaty on the Functioning of the European Union (TFEU). Amounts of up to € 500 000 over three years are now deemed not to constitute aid because it does not affect competition or trade between Member States. This threshold is higher than the general de minimis thresholds in the field of state aid (€ 200 000 over three years) because according to the Commission it can be assumed that the support measures are at least in part compensating for the extra costs incurred for the provision of a public service.

The new Regulation is seen as a major simplification for both public authorities and service providers, because it will considerably reduce the administrative burden for granting public service compensation for small SGEI. At the same time, it increases legal certainty, because it establishes a clear threshold, below which SGEI compensation does not constitute state aid within the meaning of EU rules.

The de minimis Regulation will be in force until 31 December 2018.

Link: http://ec.europa.eu/competition/state_aid/legislation/sgei.html

Source: Midday Express