Clearer rules for services of general economic interest

By Aoife White

Date: 07/07/05

Clearer rules and less red tape for granting state aid to bus companies, swimming pools and social housing are to be adopted by the European Commission on 13 July.

The guidelines for giving money to businesses which provide services of general economic interest (SGEI) are the first to take into account the key 2003 ruling from the European Court of Justice on public support for the German bus firm Altmark.

The new rules will exempt many small firms from notifying possible state aid to the Commission, with a likely threshold of €15million in an overall budget of €40-50m.

Individual member states have the right to define what they believe are services of general economic interest.

Article anticipates the adoption of new rules by the European Commission on 13 July 2005 which would exempt many small firms from notifying possible state aid to the Commission, with a likely threshold of €15million in an overall budget of €40-50m.