State of play, main conclusions, outlook

In 2012, the Commission launched the State aid modernisation reform considering that a more focused framework for the assessment of State aid measures will allow Member States to better contribute both to the implementation of the Europe 2020 strategy for sustainable growth as well as to budgetary consolidation.

The objectives of the modernisation of State aid control were threefold: 1) to foster sustainable, smart and inclusive growth in a competitive internal market; 2) to focus the Commission's ex ante scrutiny on cases with the biggest impact on the internal market; and 3) to streamline the rules and provide for faster decisions.

In view of these objectives, the Commission has revised several State aid rules in 2013 and 2014 and announced its intention to revise at a later stage other existing rules in light of the objectives of State aid modernisation.

The aim of the fitness check was to analyse the relevance, effectiveness, efficiency, coherence and EU-added value of these State aid rules; and to evaluate and assess their contribution to achieving the EU 2020 policy objectives. In doing so, the fitness check assessed if these State aid rules are still "fit for purpose" taking into account the general State aid modernisation objectives, the specific objectives of the legal framework (including the “future” legislation already adopted), the current and (already known) future challenges and whether the objectives of the State aid modernisation have been met.

REFIT Platform

In its opinion XXII.8.b on the alignment of the rules on the state aid and the European Structural and Investment Funds, the REFIT Platform recommended the European Commission to:

1. Harmonise approval procedures;

2. Interconnect MS monitoring/reporting information systems;

3. Insert clear definitions;

4. Harmonise State aid and De Minimis aid rules in relation to monitoring, calculation of eligible costs, etc.

5. Streamline the application of the “incentive effect” requirement in Cohesion policy operations;

6. Align obligation for aid recipients from Cohesion policy and State aid rules.

In its opinion V.8.a on state aid and ESIF, the REFIT Platform recognized that the combination of State aid rules and other legal or financial instruments, such as the ESI-funds, can possibly cause unnecessary administrative burdens. The REFIT Platform suggested the European Commission to take adequate notice of the complexity and discouragement in ESIF funded projects. The Stakeholder group also acknowledged the Commission’s ambition to address the possible interconnection of State aid and other instruments as per quote in the MFF 2021-2027 proposal “to simplify and streamline State aid rules to make it easier to link up instruments from the EU budget with national funding”.

Estimated savings and benefits

The 2018 State Aid Scoreboard shows that since 2015, over 96% of new implemented aid measures fell under the General Block Exemption Regulation (GBER) allowing more rapid implementation by the Member States and the focus of State aid control being more "big on big things and small on small things". The growing share of spending falling under the GBER also implies that, on average, State aid measures registered by the Commission have been implemented by Member States much faster than in the past: compared to 2013, the average time to implement State aid measures decreased by 15%.

The fitness check assessed to what extent the current regime has contributed to achieving a reduction of the administrative burden.