Commission proposes new rules on state aid for small companies

The European Commission is next week (20 September) expected to try to appease small- and medium-sized companies with fresh proposals for changes to the de minimis regulation covering small amounts of state aid.

The draft will contain new provisions for so-called non-transparent aid, which includes credit guarantee schemes. Previous proposals published at the beginning of June would have excluded such schemes, one of the main instruments used by SMEs to gain access to vital capital.

Revision of the regulation, which sets the threshold beneath which state aid is deemed acceptable, has stirred considerable discontent among SMEs. "The Commission kicked out aid for credit schemes," said Gerard Huemer, director of economic and fiscal policy at UEAPME, the European association representing SMEs. "It promised a solution. I hope it will come up with concrete, workable proposals."

According to a Commission official, proposals should now prove satisfactory to SMEs.

"The proposals on non-transparent aid are quite different," he said. "They should solve 95% of SMEs’ issues."

The official confirmed that the threshold for aid would be set at €200,000, double the previous limit.

The European Commission is next week (20 September) expected to try to appease small- and medium-sized companies with fresh proposals for changes to the de minimis regulation covering small amounts of state aid.

• Primary Source