On 13 December 2023, the European Commission issued revised De Minimis Aid Regulations (Regulations) which are applicable from 1 January 2024 until 31 December 2030. These revisions have brought about some positive changes that aim to adapt the rules more to the current economic reality faced by businesses, such as inflation, and to improve the accountability and transparency of the awarding of aid.
Below are some salient changes brought about by these Regulations.
What is De Minimis Aid?
The EU Regulations on De Minimis Aid allow Member States to provide small amounts of aid without the need to notify the European Commission of the aid awarded, on the premise that such amounts are considered to have no impact on competition and trade in the EU internal market.
Local notable schemes which are regulated under the De Minimis Aid Regulations include the MicroInvest Scheme, SME Enhance (De Minimis) Scheme and Digitalise Your Business Scheme. More support measures are expected to be issued by the national authorities in the foreseeable future.
Amendments to De Minimis Aid Regulations
- Higher amounts of permissible aid
- Introduction of a centralised register
- Safe harbours for financial intermediaries
Higher amounts of permissible aid
The most positive change in these Regulations relates to an increase in the ceiling of De Minimis Aid from €200,000 to €300,000 per single undertaking (as defined) over a three-year rolling period.
There is also no longer a separate threshold for commercial road freight transport, meaning that a single undertaking performing road freight transport for hire or reward may benefit from De Minimis aid of up to €300,000 over a three-year rolling period (an increase from €100,000 under the previous De Minimis regulations).
Introduction of a centralised register
Another significant change in the administration of aid awarded under these Regulations is the introduction of a centralised register at the national or EU level in which information on De Minimis Aid awarded is to be recorded. This centralised register is required to make the practical administration of the regime more uniform and to enhance transparency and control. As from 1 January 2026, Member States must ensure that the relevant information, including the beneficiary’s name, the aid amount awarded, the date of awarding the aid, the granting authority, the aid instrument and the economic sector concerned, are recorded in such a register.
Safe harbours for financial intermediaries
De Minimis aid safe harbours were introduced for financial intermediaries to further facilitate aid in the form of loans and guarantees. Whereas these were previously required to completely pass on the benefits received to the end beneficiaries, under the new rules certain exceptions were introduced for total loan portfolios not exceeding certain thresholds.
De Minimis Aid Regulations for providers of Services of General Economic Interest (SGEI)
Another set of De Minimis regulations specifically applicable for providers of SGEI, such as providers of public transport and healthcare providers (subject to conditions), were also revised. The updates include similar requirements for a centralised register, and an increase of the ceiling from €500,000 to €750,000 over a rolling three-year period.
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