Press Release: State aid: 24 Member States accept new regional aid guidelines (2007-2013); Commission opens formal investigation against Germany

The European Commission on 27 June 2006 opened a formal investigation into all German regional aid schemes following Germany’s refusal to accept the Commission’s December 2005 guidelines on the application of EC Treaty state aid rules to national regional aid from 2007 onwards. Regional aid granted by Member States after 1 January 2007 must comply with the new rules, and Member States were invited to close regional aid schemes operating under the old rules by 31 December 2006, the expiry date of the previous guidelines. All Member States except Germany had accepted the Commission’s new guidelines which were in line with EU cohesion policy and European Council requests for less and better targeted state aid. The December 2005 guidelines re-focused regional aid on the most deprived regions of the enlarged Union, while allowing for the need to improve competitiveness and to provide for a smooth transition.