The European Commission has adopted revised EU guidelines on regional State aid (the “Regional Aid Guidelines”), setting out the rules under which Member States can grant State aid to companies to support the economic development of disadvantaged areas in the EU, while ensuring a level playing field between Member States. The revised Guidelines will enter into force on 1 January 2022.

The EC’s decision results is increased maximum aid intensities to support the European Green Deal and Digital Strategy objectives by enabling additional incentives for investments in the disadvantaged areas of the EU. In addition, the Guidelines include several aid intensity bonuses: (i) for outermost regions, (ii) for border areas, (iii) for Just Transition Areas in the most disadvantaged areas, and (iv) for areas experiencing a population loss. Small and medium-sized enterprises (SMEs) also maintain higher maximum aid intensities than large enterprises.