Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (Text with EEA relevance)
Date: 2008-08-06
Institutions: European Commission
Subjects: State aid, control of State aid, employment aid, environmental protection, female work, investment aid, regional development, research and development, vocational training, worker with disabilities

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Official Journal of the European Union

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COMMISSION REGULATION (EC) No 800/2008

of 6 August 2008

declaring certain categories of aid compatible with the common market in application of Articles 87
and 88 of the Treaty (General block exemption Regulation)

(Text with EEA relevance)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 994/98 of 7 May
1998 on the application of Articles 92 and 93 of the Treaty
establishing the European Community to certain categories of
horizontal State aid (1), and in particular Article 1(1) points (a)
and (b) thereof,

Having published a draft of this Regulation (2),

(3)

After consulting the Advisory Committee on State Aid,

Whereas:

(1)

Regulation (EC) No 994/98 empowers the Commission
to declare, in accordance with Article 87 of the Treaty
that under certain conditions aid to small and medium-
sized enterprises (‘SMEs’), aid in favour of research and
development, aid in favour of environmental protection,
employment and training aid, and aid that complies with
the map approved by the Commission for each Member
State for the grant of regional aid is compatible with the
common market and not subject
to the notification
requirement of Article 88(3) of the Treaty.

(2)

The Commission has applied Articles 87 and 88 of the
Treaty in numerous decisions and gained sufficient
experience to define general compatibility criteria as

(1) OJ L 142, 14.5.1998, p. 1.
(2) OJ C 210, 8.9.2007, p. 14.

regards aid in favour of SMEs, in the form of investment
aid in and outside assisted areas,
in the form of risk
capital schemes and in the area of research, development
and innovation, in particular in the context of the imple­
mentation of Commission Regulation (EC) No 70/2001
of 12 January 2001 on the application of Articles 87 and
88 of the EC Treaty to State aid to small and medium-
sized enterprises (3), and as regards the extension of the
scope of that Regulation to include aid for research and
development, the implementation of Commission Regu­
lation (EC) No 364/2004 of 25 February 2004 amending
Regulation (EC) No 70/2001 (4), the implementation of
the Commission communication on State aid and risk
capital (5) and the Community guidelines on State aid
to promote
in small and
medium-sized enterprises (6), as well as the implemen­
tation of the Community framework for State aid for
research and development and innovation (7).

risk capital

investments

The Commission has also gained sufficient experience in
the application of Articles 87 and 88 of the Treaty in the
fields of training aid, employment aid, environmental aid,
research and development and innovation aid and
regional aid with respect to both SMEs and large enter­
prises, in particular in the context of the implementation
of Commission Regulation (EC) No 68/2001 of
12 January 2001 on the application of Articles 87 and
the EC Treaty to training aid (8), Commission
88 of
Regulation (EC) No 2204/2002 of 12 December 2002
on the application of Articles 87 and 88 of the EC Treaty
to State aid for employment (9), Commission Regulation
(EC) No 1628/2006 of 24 October 2006 on the appli­
cation of Articles 87 and 88 of the Treaty to national
investment aid (10) the Community framework
regional
the
for State aid for
Community Framework for State aid for research and
development and innovation,
the 2001 Community
guidelines on State for environmental protection (12),
the 2008 Community guidelines on State aid for envi­
ronmental protection (13) and the Guidelines on national
regional aid for 2007-2013 (14).

research and development (11),

(3) OJ L 10, 13.1.2001, p. 33. Regulation as last amended by Regu­

lation (EC) No 1976/2006 (OJ L 368, 23.12.2006, p. 85).

(4) OJ L 63, 28.2.2004, p. 22.
(5) OJ C 235, 21.8.2001, p. 3.
(6) OJ C 194, 18.8.2006, p. 2.
(7) OJ C 323, 30.12.2006, p. 1.
(8) OJ L 10, 13.1.2001, p. 20. Regulation as last amended by Regu­

lation (EC) No 1976/2006.

(9) OJ L 337, 13.12.2002, p. 3. Regulation as last amended by Regu­

lation (EC) No 1976/2006.

(10) OJ L 302, 1.11.2006, p. 29.
(11) OJ C 45, 17.2.1996, p. 5.
(12) OJ C 37, 3.2.2001, p. 3.
(13) OJ C 82, 1.4.2008, p. 1.
(14) OJ C 54, 4.3.2006, p. 13.

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(4)

(5)

(6)

reasons of

In the light of this experience, it is necessary to adapt
some of the conditions laid down in Regulations (EC)
Nos 68/2001, 70/2001, 2204/2002 and 1628/2006.
For
simplification and to ensure more
efficient monitoring of aid by the Commission, those
Regulations should be replaced by a single Regulation.
Simplification should result from, amongst other things,
a set of common harmonised definitions and common
horizontal provisions laid down in Chapter I of
this
In order to ensure the coherence of State
Regulation.
aid legislation,
the definitions of aid and aid scheme
should be identical to the definitions provided for these
concepts in Council Regulation (EC) No 659/1999 of
22 March 1999 laying down detailed rules for the appli­
cation of Article 93 of the EC Treaty (1). Such simplifi­
cation is essential
in order to ensure that the Lisbon
Strategy for Growth and Jobs yields results, especially
for SMEs.

This Regulation should exempt any aid that fulfils all the
relevant conditions of
this Regulation, and any aid
scheme, provided that any individual aid that could be
granted under
the relevant
such scheme fulfils all
conditions of this Regulation. In order to ensure trans­
parency, as well as more efficient monitoring of aid, any
individual aid measure granted under this Regulation
should contain an express reference to the applicable
provision of Chapter II and to the national
law on
which the individual aid is based.

In order to monitor the implementation of this Regu­
lation, the Commission should also be in a position to
obtain all necessary information from Member States
concerning the measures implemented under this Regu­
lation. A failure of the Member State to provide infor­
mation within a reasonable deadline on these aid
measures may therefore be considered to be an indi­
cation that
the conditions of this Regulation are not
being respected. Such failure may therefore lead the
the
Commission to decide that
relevant part of this Regulation, should be withdrawn,
for the future, as regards the Member State concerned
and that all subsequent aid measures, including new indi­
vidual aid measures granted on the basis of aid schemes
previously covered by this Regulation, need to be notified
to the Commission in accordance with Article 88 of the
Treaty. As soon as the Member State has provided
correct and complete information,
the Commission
should allow the Regulation to be fully applicable again.

this Regulation, or

subject to the notification requirement of Article 88(3) of
the Treaty. This Regulation should be without prejudice
to the possibility for Member States to notify aid the
objectives of which correspond to objectives covered by
this Regulation. Such aid will be assessed by the
Commission in particular on the basis of the conditions
set out in this Regulation and in accordance with the
criteria laid down in specific guidelines or frameworks
adopted by the Commission wherever the aid measure
at stake falls within the scope of application of such
specific instrument.

(8)

(9)

(10)

This Regulation should not apply to export aid or aid
favouring domestic over imported products. In particular,
it should not apply to aid financing the establishment
and operation of a distribution network in other
countries. Aid towards the cost of participating in trade
fairs, or of studies or consultancy services needed for the
launch of a new or existing product on a new market
should not normally constitute export aid.

This Regulation should apply across virtually all sectors.
In the sector of fisheries and aquaculture, this Regulation
should exempt only aid in the fields of research and
development and innovation, aid in the form of risk
capital,
training aid and aid for disadvantaged and
disabled workers.

in view of the special rules
In the agricultural sector,
which apply in the primary production of agricultural
products, this Regulation should exempt only aid in the
fields of research and development, aid in the form of
risk capital, training aid, environmental aid and aid for
disadvantaged and disabled workers to the extent that
these categories of aid are not covered by Commission
Regulation (EC) No 1857/2006 of 15 December 2006
on the application of Articles 87 and 88 of the Treaty to
State aid to small and medium-sized enterprises active in
the production of agricultural products and amending
Regulation (EC) No 70/2001 (2).

(7)

State aid within the meaning of Article 87(1) of the
Treaty not covered by this Regulation should remain

(11)

In view of the similarities between the processing and
marketing of agricultural products and of non-agri­
cultural products this Regulation should apply to the
processing and marketing of
agricultural products,
provided that certain conditions are met.

(1) OJ L 83, 27.3.1999, p. 1. Regulation as last amended by Regulation

(EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(2) OJ L 358, 16.12.2006, p. 3.

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should be
the purposes of

(12) Neither on-farm activities necessary for preparing a
product for the first sale, nor the first sale to resellers
considered processing or
or processors
marketing for
this Regulation. The
Court of Justice of the European Communities has estab­
lished that, once the Community has legislated for the
establishment of a common organisation of the market
in a given sector of agriculture, Member States are under
an obligation to refrain from taking any measure which
might undermine or create exceptions to it. This Regu­
lation should therefore not apply to aid, the amount of
which is fixed on the basis of price or quantity of
products purchased or put on the market, nor should
it apply to aid which is linked to an obligation to
share it with primary producers.

(13)

In view of Council Regulation (EC) No 1407/2002 of
23 July 2002 on State aid to the coal industry (1), this
Regulation should not apply to aid favouring activities in
training aid,
the coal
research and development and innovation aid and envi­
ronmental aid.

sector with the exception of

(16)

rather

targeted at

(14) Where a regional aid scheme purports to realise regional
objectives, but
is targeted at particular sectors of the
economy, the objective and likely effects of the scheme
than horizontal. Therefore,
may be sectorial
regional aid schemes
specific sectors of
economic activity, as well as regional aid granted for
in the shipbuilding sector,
activities in the steel sector,
communication
as
in
concerning the prolongation of
the Framework on
State aid to shipbuilding (2), and in the synthetic fibres
sector, should not be covered by the exemption from
notification. However,
tourism sector plays an
important role in national economies and in general
has a particularly positive effect on regional development.
Regional aid schemes aimed at tourism activities should
therefore be exempt from the notification requirement.

the Commission

foreseen

the

(15) Aid granted to undertakings in difficulty within the
meaning of the Community guidelines on State aid for
rescuing and restructuring firms in difficulty (3) should be
assessed under those Guidelines in order to avoid their
circumvention. Aid
should
therefore be excluded from the scope of this Regulation.
In order to reduce the administrative burden for Member
States, when granting aid covered by this Regulation to

undertakings

such

to

(1) OJ L 205, 2.8.2002, p. 1. Regulation as last amended by Regulation

(EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

(2) OJ C 260, 28.10.2006, p. 7.
(3) OJ C 244, 1.10.2004, p. 2.

(17)

(18)

for

should be

in difficulty

the definition of what

is to be considered an
SMEs,
undertaking
simplified as
compared to the definition used in those Guidelines.
Moreover, SMEs which have been incorporated for less
the
than three years should not be considered,
to be in difficulty with
purposes of
this Regulation,
regard to that period, unless they fulfil
the criteria
under the relevant national law for being the subject of
collective insolvency proceedings. That
simplification
should be without prejudice to the qualification of
those SMEs under those Guidelines with regard to aid
not covered by this Regulation and without prejudice
to the qualification as undertakings in difficulty of large
enterprises, under this Regulation, which remain subject
to the full definition provided in those Guidelines.

subject

The Commission has to ensure that authorised aid does
not alter trading conditions in a way contrary to the
general interest. Therefore, aid in favour of a beneficiary
which is
to an outstanding recovery order
following a previous Commission Decision declaring an
aid illegal and incompatible with the common market,
should be excluded from the scope of this Regulation. As
a consequence, any ad hoc aid paid out to such a bene­
ficiary and any aid scheme not containing a provision
explicitly excluding such beneficiaries remains subject to
the notification requirements of Article 88(3) of
the
Treaty. That provision should not affect the legitimate
expectations of beneficiaries of aid schemes which are
not subject to outstanding recovery orders.

the

consistent

to ensure

application of
In order
Community State aid rules, as well as for reasons of
administrative simplification,
terms
the definitions of
which are relevant
to the various categories of aid
covered by this Regulation should be harmonised.

instalments

For the purposes of calculating aid intensity, all figures
used should be taken before any deduction of tax or
other charge. For the purpose of calculating aid inten­
should be
sities, aid payable in several
discounted to its value at the moment of granting. The
interest rate to be used for discounting purposes and for
calculating the aid amount in aid not taking the form of
a grant, should be the reference rate applicable at the
time of grant, as laid down in the Communication
from the Commission on the revision of the method
for setting the reference and discount rates (4).

(4) OJ C 14, 19.1.2008, p. 6.

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(19)

(20)

tax
In cases where aid is awarded by means of
exemptions or reductions on future taxes due, subject
to the respect of a certain aid intensity defined in gross
grant equivalent, discounting of aid tranches should take
place on the basis of the reference rates applicable at the
various times the tax advantages become effective. In the
case of tax exemptions or reductions on future taxes, the
applicable reference rate and the exact amount of the aid
tranches may not be known in advance. In such a case,
in advance a cap on the
Member States should set
the aid respecting the applicable
discounted value of
aid intensity. Subsequently, when the amount of
the
aid tranche in a given year becomes known, discounting
can take place on the basis of
the reference rate
applicable at that time. The discounted value of each
aid tranche
should be deducted from the overall
amount of the cap.

For the purposes of transparency, equal treatment and
effective monitoring, this Regulation should apply only
to aid which is transparent. Transparent aid is aid for
is possible to calculate precisely the gross
which it
grant equivalent ex ante without a need to undertake a
risk assessment. Aid comprised in loans,
in particular,
should be considered transparent where the gross grant
equivalent has been calculated on the basis of
the
laid down in the Communication
reference rate as
from the Commission on the revision of the method
for
rates. Aid
comprised in fiscal measures should be considered trans­
parent where the measure provides for a cap ensuring
that the applicable threshold is not exceeded. In the case
of reductions in environmental
taxes, which are not
subject
to an individual notification threshold under
this Regulation, no cap needs to be included for the
measure to be considered transparent.

and discount

setting the

reference

(21) Aid

after

schemes

adoption

comprised

in the case of regional

should
in guarantee
be
to
considered transparent when the methodology
calculate the gross grant equivalent has been approved
this methodology to the
following notification of
Commission, and,
investment
aid, also when the Commission has approved such meth­
odology
(EC) No
1628/2006. The Commission will examine such notifi­
cations on the basis of the Commission Notice on the
application of Articles 87 and 88 of the EC Treaty to
State aid in the form of guarantees (1). Aid comprised in
guarantee schemes should also be considered transparent
where the beneficiary is an SME and the gross grant
equivalent has been calculated on the basis of the safe-
harbour premiums laid down in points 3.3 and 3.5 of
that Notice.

of Regulation

(22)

the difficulty in calculating the grant
In view of
equivalent of aid in the form of repayable advances,
such aid should be covered by this Regulation only if
the total amount of the repayable advance is inferior to

(1) OJ C 155, 20.6.2008, p. 10.

the applicable individual notification threshold and the
maximum aid intensities provided under this Regulation.

(23) Due to the higher risk of distortion of competition, large
amounts of aid should continue to be assessed by the
Commission on an individual basis. Thresholds should
therefore be set
for each category of aid within the
scope of this Regulation, at a level which takes into
account
the category of aid concerned and its likely
effects on competition. Any aid granted above those
thresholds
notification
the
subject
requirement of Article 88(3) of the Treaty.

remains

to

(24) With a view to ensuring that aid is proportionate and
should,
limited to the amount necessary,
whenever possible, be expressed in terms of aid inten­
sities in relation to a set of eligible costs. Because it is
based on a form of aid for which eligible costs are
difficult to identify, the threshold with regard to aid in
the form of risk capital should be formulated in terms of
maximum aid amounts.

thresholds

(25)

(26)

at

strikes

The thresholds in terms of aid intensity or aid amount
the Commission’s
in the light of
should be fixed,
experience,
appropriate
that
level
a
balance between minimising distortions of competition
in the aided sector and tackling the market failure or
cohesion issue concerned. With respect
to regional
investment aid, this threshold should be set at a level
taking into account the allowable aid intensities under
the regional aid maps.

the

In order to determine whether the individual notification
thresholds and the maximum aid intensities laid down in
this Regulation are respected, the total amount of public
support for the aided activity or project should be taken
into account,
is
regardless of whether
financed from local, regional, national or Community
sources.

support

that

(27) Moreover,

this Regulation should specify the circum­
stances under which different categories of aid covered
by this Regulation may be cumulated. As regards cumu­
lation of aid covered by this Regulation with State aid
not covered by this Regulation, regard should be had to
the Decision of the Commission approving the aid not
covered by this Regulation, as well as to the State aid
rules on which that decision is based. Special provisions
should apply in respect of cumulation of aid for disabled
workers with other categories of aid, notably with
investment aid, which can be calculated on the basis of
the wage costs concerned. This Regulation should also
make provision for cumulation of aid measures with
identifiable eligible costs and aid measures without iden­
tifiable eligible costs.

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(28)

In order to ensure that the aid is necessary and acts as an
incentive to develop further activities or projects, this
Regulation should not apply to aid for activities in
which the beneficiary would already engage under
market conditions alone. As regards any aid covered by
this Regulation granted to an SME, such incentive should
be considered present when, before the activities relating
to the implementation of the aided project or activities
are initiated, the SME has submitted an application to the
Member State. As regards aid in the form of risk capital
the conditions laid down in this
in favour of SMEs,
Regulation, notably with respect
the
investment tranches per target enterprise, the degree of
involvement of private investors, the size of the company
the risk
and the business stage financed, ensure that
capital measure will have an incentive effect.

to the size of

(29) As regards any aid covered by this Regulation granted to
a beneficiary which is a large enterprise, the Member
State should, in addition to the conditions applying to
SMEs, also ensure that the beneficiary has analysed, in an
internal document, the viability of the aided project or
activity with aid and without aid. The Member State
should verify that
this internal document confirms a
material increase in size or scope of the project/activity,
a material
increase in the total amount spent by the
beneficiary on the subsidised project or activity or a
the
material
aid,
project/activity concerned. As
incentive effect may also be established on the basis of
the fact that the investment project would not have been
carried out as such in the assisted region concerned in
the absence of the aid.

increase in the speed of completion of
regional

regards

that

(30) As regards aid for disadvantaged or disabled workers, an
incentive effect should be considered to be present by the
fact
the aid measure concerned leads to a net
increase in the number of disadvantaged or disabled
workers hired by the undertaking concerned or leads to
additional costs in favour of
facilities or equipment
devoted to disabled workers. Where the beneficiary of
an aid for the employment of disabled workers in the
form of wage subsidies was already benefiting from aid
for employing disabled workers, which either fulfilled the
conditions of Regulation (EC) No 2204/2002 or had
been individually approved by the Commission,
is
presumed that the condition of a net increase in the
number of disabled workers, which was fulfilled for the
pre-existing aid measures, continues to be fulfilled for the
purpose of this Regulation.

it

(31)

to specific
Fiscal
aid measures
conditions of incentive effect,
in view of the fact that
they are provided on the basis of different procedures

should be

subject

the

taxation of

fulfilling the

than other categories of aid. Reductions in environmental
taxes
conditions of Council Directive
2003/96/EC of 27 October 2003 restructuring the
Community framework for
energy
products and electricity (1) and covered by this Regu­
lation should be presumed to have an incentive effect
in view of fact that these reduced rates contribute at
least
indirectly to an improvement of environmental
protection by allowing the adoption or the continuation
of the overall tax scheme concerned, thereby incenti­
vising the undertakings subject
to the environmental
tax to reduce their level of pollution.

(32) Moreover, as the incentive effect of ad hoc aid granted to
large enterprises is considered to be difficult to establish,
this form of aid should be excluded from the scope of
application of
this Regulation. The Commission will
examine the existence of such incentive effect in the
context of the notification of the aid concerned on the
basis of
applicable
guidelines, frameworks or other Community instruments.

established in the

criteria

the

(33)

In order to ensure transparency and effective monitoring
in accordance with Article 3 of Regulation (EC) No
994/98,
it is appropriate to establish a standard form
to be used by Member States to provide the Commission
in pursuance of
with summary information whenever,
this Regulation, an aid scheme or ad hoc aid is im­
plemented. The summary information form should be
used for the publication of the measure in the Official
Journal of the European Union and on the internet. The
summary information should be sent to the Commission
in electronic format making use of the established IT
should
application. The Member
publish on the internet
such aid
measure. In the case of ad hoc aid measures, business
secrets may be deleted. The name of the beneficiary and
the amount of aid should however not be considered a
business secret. Member States should ensure that such
text remains accessible on the internet as long as the aid
measure is in force. With the exception of aid taking the
form of fiscal measures, the act granting the aid should
also contain a reference to the specific provision(s) of
Chapter II of this Regulation relevant to such an act.

concerned
text of

State
the full

(34)

In order to ensure transparency and effective monitoring,
the Commission should establish specific requirements as
regards the form and the content of the annual reports to
be submitted to the Commission by Member States.
Moreover, it is appropriate to establish rules concerning
the records that Member States should keep regarding the
aid schemes and individual aid exempted by this Regu­
lation, in view of the provisions of Article 15 of Regu­
lation (EC) No 659/1999.

(1) OJ L 283, 31.10.2003, p. 51. Directive as last amended by Directive

2004/75/EC (OJ L 157, 30.4.2004, p. 100).

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(35)

It is necessary to establish further conditions that should
be fulfilled by any aid measure exempted by this Regu­
lation. Having regard to Articles 87(3)(a) and 87(3)(c) of
the Treaty, such aid should be proportionate to the
market failures or handicaps that have to be overcome
in order to be in the Community interest. It is therefore
appropriate to limit the scope of this Regulation, as far as
it concerns investment aid, to aid granted in relation to
certain tangible and intangible investments. In the light
of Community overcapacity and the specific problems of
distortion of competition in the road freight and air
transport sectors, so far as undertakings having their
main economic activity in those transport sectors are
concerned, transport means and equipment should not
Special
be
provisions should apply as regards the definition of
tangible assets for the purpose of environmental aid.

investment

regarded

eligible

costs.

as

(39)

this Regulation relating to SME
The provisions of
investment and employment aid should not provide, as
was the case in Regulation (EC) No 70/2001, any possi­
bility for increasing the maximum aid intensities by
it should be
means of a regional bonus. However,
possible for the maximum aid intensities laid down in
the provisions concerning regional investment aid to be
granted also to SMEs, as long as the conditions for
granting regional
investment and employment aid are
fulfilled. Similarly, the provisions relating to environmen­
tal investment aid should not provide any possibility for
increasing the maximum aid intensities by means of a
regional bonus.
the
maximum aid intensities laid down in the provisions
investment aid to be applied to
concerning regional
projects which have a positive impact on the environ­
ment, as long as the conditions for granting regional
investment aid are fulfilled.

should also be possible for

It

(36)

Consistent with the principles governing the aid falling
within Article 87(1) of
the Treaty, aid should be
considered to be granted at the moment the legal right
to receive the aid is conferred on the beneficiary under
the applicable national legal regime.

(40)

(37)

In order not to favour the capital factor of an investment
over the labour factor, provision should be made for the
possibility of measuring aid to investment in favour of
SMEs and regional aid on the basis of either the costs of
the investment or the costs of employment directly
created by an investment project.

By addressing the handicaps of
the disadvantaged
regions, national regional aid promotes the economic,
social and territorial cohesion of Member States and
the Community as a whole. National regional aid is
designed to assist the development of the most disad­
vantaged regions by supporting investment and job
creation in a sustainable context.
the
It promotes
the extension of
setting-up of new establishments,
existing establishments, the diversification of the output
of an establishment into new additional products or a
fundamental change in the overall production process of
an existing establishment.

(41)

(38)

Environmental aid schemes in the form of tax reductions,
investment aid,
aid for disadvantaged workers, regional
aid for newly created small enterprises, aid for enterprises
newly created by female entrepreneurs or aid in the form
of risk capital granted to a beneficiary on an ad hoc basis
may have a major impact on competition in the relevant
favours the beneficiary over other
market because it
undertakings which have not received such aid. Because
it is granted only to a single undertaking, ad hoc aid is
likely to have only a limited positive structural effect on
the environment, the employment of disabled and disad­
vantaged workers, regional cohesion or the risk capital
market failure. For this reason, aid schemes concerning
those categories of aid should be exempted under this
Regulation, whilst ad hoc aid should be notified to the
Commission. This Regulation should however exempt ad
hoc regional aid when this ad hoc aid is used to
supplement aid granted on the basis of a regional
investment aid scheme, with a maximum limit for the
ad hoc component of 50 % of the total aid to be granted
for the investment.

a

large

investment project

In order to prevent large regional
investment projects
from being artificially divided into sub-projects, thereby
escaping the notification thresholds provided under this
should be
Regulation,
considered to be a single investment project
the
if
investment is undertaken within a period of three years
by the same undertaking or undertakings and consists of
fixed assets combined in an economically indivisible way.
To assess whether an investment is economically indi­
the
visible, Member States should take into account
technical,
the
and
and
immediate geographical proximity. The economic indivi­
sibility
from
assessed
ownership. This means that to establish whether a large
investment project
investment
constitutes
project, the assessment should be the same irrespective
of whether the project is carried out by one undertaking,
by more than one undertaking sharing the investment
costs or by more undertakings bearing the costs of
separate
investment
project (for example in the case of a joint venture).

investments within the

independently

functional

strategic

should

single

same

links

be

a

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(42)

(43)

(44)

In contrast to regional aid, which should be confined to
assisted areas, SME investment and employment aid
should be able to be granted both in assisted and in
non-assisted areas. The Member States should thus be
investment aid as
in assisted areas,
able to provide,
long as they respect either all conditions applying to
regional
all
conditions applying to SME investment and employment
aid.

employment

investment

aid or

and

reducing

achievement of substantive rather than formal equality
facto
between men and women by
inequalities existing in the area of entrepreneurship,
in
line with the requirements of the case-law of the Court of
Justice of the European Communities. At the expiry of
this Regulation the Commission will have to reconsider
whether the scope of this exemption and the categories
of beneficiaries concerned remain justified.

de

investment aid,

The economic development of
the assisted regions is
hindered by relatively low levels of entrepreneurial
activity and in particular by even lower than average
rates of business start-ups. It is therefore necessary to
include in this Regulation a category of aid, which can
be granted in addition to regional
in
order to provide incentives to support business start-
ups and the early stage development of small enterprises
in the assisted areas. In order to ensure that this aid for
newly created enterprises in assisted regions is effectively
targeted,
this category of aid should be graduated in
accordance with the difficulties faced by each category
of region. Furthermore, in order to avoid an unacceptable
risk of distortions of competition, including the risk of
the aid should be
crowding-out existing enterprises,
strictly limited to small enterprises,
limited in amount
and degressive. Granting aid designed exclusively for
newly created small enterprises or enterprises newly
created by female entrepreneurs may produce perverse
incentives for existing small enterprises to close down
and re-open in order to receive this category of aid.
Member States should be aware of this risk and should
design aid schemes in such a way as to avoid this
problem, for example by placing limits on applications
from owners of recently closed firms.

(45)

(46)

The economic development of the Community may be
hindered by low levels of entrepreneurial activity by
certain categories of the population who suffer certain
disadvantages, such as getting access to finance. The
Commission has
reviewed the possibility of market
failure in this respect as regards a variety of categories
of persons, and is at this stage in a position to conclude
that women, in particular have lower than average rates
of business
is
evidenced,
statistical data of
Eurostat. It is therefore necessary to include in this Regu­
lation a category of aid providing incentives for the
creation of enterprises by female entrepreneurs in order
to tackle the specific market failures women encounter
most notably with respect to access to finance. Women
also face particular difficulties linked to bearing caring
costs for family members. Such aid should allow the

compared to men, as

amongst others, by

start-ups as

of

energy

security

is based,

Sustainable development is one of the main pillars in the
together with
Lisbon Strategy for Growth and Jobs,
competitiveness
supplies.
and
amongst other
development
Sustainable
things, on a high level of protection and improvement
of the quality of the environment. Promoting environ­
mental sustainability and combating climate change leads
as well to increasing security of supply and ensuring the
competitiveness of European economies and the availa­
bility of affordable energy. The area of environmental
protection is often confronted with market failures in
the form of negative externalities. Under normal market
conditions, undertakings may not necessarily have an
incentive to reduce their pollution since such reduction
may increase their costs. When undertakings are not
obliged to internalise the costs of pollution, society as
a whole bears these costs. This internalisation of envi­
ronmental costs can be ensured by imposing environ­
mental regulation or taxes. The lack of full harmonisation
of environmental standards at Community level creates
an uneven playing field. Furthermore, an even higher
level of environmental protection can be achieved by
the initiatives to go beyond the mandatory Community
standards, which may harm the competitive position of
the undertakings concerned.

In view of the sufficient experience gathered in the appli­
cation of the Community guidelines on State aid for
environmental protection, investment aid enabling under­
takings to go beyond Community standards for environ­
mental protection or increase the level of environmental
protection in the absence of Community standards, aid
for the acquisition of transport vehicles which go beyond
Community standards or which increase the level of en­
vironmental protection in the absence of Community
standards,
future
Community standards by SMEs, environmental aid for
investment
in energy saving, environmental aid for
investment in high efficiency cogeneration, environmen­
tal aid for investments to promote renewable energy
sources including investment aid relating to sustainable
biofuels, aid for environmental studies and certain aid in
the form of reductions in environmental taxes should be
exempt from the notification requirement.

adaptation

early

aid

for

to

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9.8.2008

(47) Aid in the form of tax reductions favouring environmen­
tal protection covered by this Regulation, should, in line
with the Community guidelines on State aid for environ­
mental protection, be limited to a period of 10 years.
After this period, Member States should re-evaluate the
appropriateness of the tax reductions concerned. This
should be without prejudice to the possibility for
Member States of re-adopting these measures or similar
measures under this Regulation after having realised such
re-evaluation.

with the exception of other environmental
aid.

investment

(52) With regard to investments related to hydropower instal­
lations it should be noted that
their environmental
impact can be twofold. In terms of low greenhouse gas
emissions they certainly provide potential. On the other
hand, such installations might also have a negative
impact, for example on water systems and biodiversity.

(48) A correct

the

extra

calculation of

investment or
production costs to achieve environmental protection is
essential to determine whether or not aid is compatible
with Article 87(3) of
the Treaty. As outlined in the
Community guidelines on State aid for environmental
protection, eligible costs should be limited to the extra
investment costs necessary to achieve a higher level of
environmental protection.

(49)

In view of the difficulties which may arise, in particular,
with respect to the deduction of benefits deriving from
extra investment, provision should be made for a
simplified method of calculation of the extra investment
costs. Therefore these costs should, for the purpose of
applying this Regulation, be calculated without taking
into account operating benefits, cost savings or additional
taking into account
ancillary production and without
operating costs
the
investment. The maximum aid intensities provided
under this Regulation for the different categories of envi­
ronmental investment aid concerned have therefore been
reduced systematically as compared to the maximum aid
intensities provided for by the Community guidelines on
State aid for environmental protection.

engendered during the

life of

(50) As regards environmental aid for investment in energy
saving measures it is appropriate to allow Member States
to choose either the simplified method of calculation or
the full cost calculation, identical to the one provided for
in the Community guidelines on State aid for environ­
mental protection.
the particular practical
difficulties which may arise when applying the full cost
calculation method,
those cost calculations should be
certified by an external auditor.

In view of

(51) As regards environmental aid for investment in cogen­
investments
to
eration and environmental
aid for
promote renewable energy sources,
the extra costs
should, for the purpose of the application of this Regu­
lation, be calculated without taking into account other
support measures granted for the same eligible costs,

(53)

(54)

In order to eliminate differences that might give rise to
distortions of competition and to facilitate coordination
initiatives
between different Community and national
concerning SMEs, as well as for reasons of administrative
clarity and legal certainty, the definition of SME used for
the purpose of this Regulation should be based on the
definition
Recommendation
Commission
2003/361/EC of 6 May 2003 concerning the definition
of micro, small and medium sized enterprises (1).

in

a

as

social

failures,

SMEs play a decisive role in job creation and, more
generally,
stability and
factor of
act
economic drive. However,
their development may be
leading to these SMEs
limited by market
suffering from typical handicaps. SMEs often have diffi­
culties in obtaining capital, risk capital or loans, given the
risk-averse nature of certain financial markets and the
limited collateral that they may be able to offer. Their
limited resources may also restrict their access to infor­
mation, notably regarding new technology and potential
markets. In order to facilitate the development of the
economic activities of SMEs,
this Regulation should
therefore exempt certain categories of aid when they
are granted in favour of SMEs. Consequently,
is
justified to exempt such aid from prior notification and
to consider that, for the purposes of the application of
this Regulation only, when a beneficiary falls within the
SME definition provided for in this Regulation, that SME
can be presumed, when the aid amount does not exceed
the applicable notification threshold, to be limited in its
development by the typical SME handicaps prompted by
market failures.

it

(55) Having regard to the differences between small enter­
prises and medium-sized enterprises, different basic aid
intensities and different bonuses should be set for small
enterprises and for medium-sized enterprises. Market
including difficulties
failures affecting SMEs in general,
of access to finance, result in even greater obstacles to
the development of small enterprises as compared to
medium-sized enterprises.

(1) OJ L 124, 20.5.2003, p. 36.

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failure relevant

(56) On the basis of the experience gained in applying the
Community guidelines on State aid to promote risk
capital
investments in small and medium-sized enter­
prises there appear to be a number of specific risk
capital market failures in the Community in respect of
certain types of investments at certain stages of under­
takings’ development. These market failures result from
an imperfect matching of supply and demand of risk
capital. As a result, the level of risk capital provided in
the market may be too restricted, and undertakings do
not obtain funding despite having a valuable business
model and growth prospects. The main source of
market
to risk capital markets, which
particularly affects access to capital by SMEs and which
may justify public intervention, relates to imperfect or
asymmetric
capital
information. Consequently,
taking the form of commercially managed
schemes
investment
funds in which a sufficient proportion of
the funds are provided by private investors in the form
of private equity promoting profit-driven risk capital
measures
should be
exempt from the notification requirement under certain
conditions. The conditions that
funds
should be commercially managed and that the ensuing
risk capital measures be profit driven should not prevent
the investment funds from targeting their activities and
particular market segments, such as enterprises created
by female entrepreneurs. This Regulation should not
affect the status of the European Investment Fund and
the European Investment Bank, as defined in the
Community guidelines on risk capital.

target enterprises

the investment

in favour of

risk

the structural disadvantages of SMEs lies in the
of
difficulty they may experience in gaining access to new
technological developments,
technology transfers or
highly qualified personnel. Therefore, aid for research
feasibility
and development projects, aid for technical
studies and aid to cover industrial property rights costs
for SMEs, as well as aid for young innovative small
enterprises, aid for innovation advisory services and for
innovation support services and aid for the loan of highly
from the
qualified personnel
requirement
certain
conditions.

be
notification,

exempt

should

under

prior

of

(59) As regards project aid for research and development, the
aided part of the research project should completely fall
within the categories of fundamental research, industrial
research or experimental development. When a project
encompasses different tasks, each task should be qualified
as falling under the categories of fundamental research,
industrial research or experimental development or as
not falling under any of those categories at all. That
qualification need not necessarily follow a chronological
approach, moving sequentially over time from funda­
mental
to the market.
Accordingly, a task which is carried out at a late stage
of a project may be qualified as industrial research.
Similarly, it is not excluded that an activity carried out
at an earlier stage of the project may constitute experi­
mental development.

research to activities closer

(57) Aid for

and

and

development

research, development and innovation can
contribute to economic growth, strengthening competi­
tiveness and boosting employment. On the basis of its
experience with the application of Regulation (EC) No
364/2004, the Community framework for State aid for
research
the Community
Framework for State aid for research and development
that, given the available
and innovation,
research and development capabilities of both SMEs
and large enterprises, market failures may prevent the
market from reaching the optimal output and lead to
an inefficient outcome.
Such inefficient outcomes
generally relate to positive externalities/knowledge spill-
overs, public goods/knowledge spill-overs, imperfect and
asymmetric information and coordination and network
failures.

it appears

(60)

(61)

(58) Aid for

research, development and innovation is of
particular importance, especially for SMEs because one

In the agricultural sector certain aid for research and
development should be exempted if conditions similar
to those provided in the specific provisions laid down
for the agricultural sector in the Community framework
for State aid for research and development and inno­
vation are fulfilled. If those specific conditions are not
it is appropriate to provide for the aid to be
fulfilled,
exempted if
in the
fulfils the conditions set out
general provisions related to research and development
in this Regulation.

it

The promotion of training and the recruitment of disad­
vantaged and disabled workers and compensation of
additional
employment of disabled
workers constitute a central objective of the economic
and social policies of the Community and of its Member
States.

costs

the

for

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Official Journal of the European Union

9.8.2008

(62)

the

and

plays

industry

of Community

including e-learning,

Training usually has positive externalities for society as a
whole since it increases the pool of skilled workers from
improves the competi­
which other firms may draw,
tiveness
an
important role in the Community employment strategy.
Training,
is also essential for the
acquisition and the diffusion of
constitution,
knowledge, a public good of primary importance.
In
view of the fact that undertakings in the Community
generally under-invest in the training of their workers,
especially when this training is general
in nature and
does not lead to an immediate and concrete advantage
for the undertaking concerned, State aid can help to
correct this market failure. Therefore such aid should
be exempt, under certain conditions, from prior notifi­
cation. In view of the particular handicaps with which
SMEs are confronted and the higher relative costs that
they have to bear when they invest in training, the inten­
sities of aid exempted by this Regulation should be
increased for SMEs. The characteristics of
training in
the maritime transport sector justify a specific approach
for that sector.

should not merely enable undertakings to reduce costs
which they would otherwise have to bear. Consequently,
such aid should be exempt from prior notification when
it is likely to assist those categories of workers in re-
entering the job market or, as regards disabled workers,
re-entering and staying in the job market.

(65) Aid for the employment of disabled workers in the form
of wage subsidies may be calculated on the basis of the
the disabled worker
specific degree of disability of
lump sum
concerned or may be provided as
provided
aid
exceeding the maximum aid intensity for each individual
worker concerned.

that neither method

to the

leads

a

the

less distortive

(63) A distinction can be drawn between general and specific
training. The permissible aid intensities should differ in
accordance with the type of training provided and the
size of the undertaking. General training provides trans­
the
ferable qualifications and substantially improves
employability of
this
trained worker. Aid for
purpose has
effects on competition,
meaning that higher intensities of aid can be exempted
from prior notification. Specific training, which mainly
benefits
risk of
distortion of competition and the intensity of aid
which can be exempted from prior notification should
therefore be much lower. Training should be considered
to be general in nature also when it relates to environ­
mental management, eco-innovation or corporate social
responsibility and thereby increases the capacity of the
beneficiary to contribute to general objectives in the en­
vironment field.

involves a greater

the undertaking,

(64)

Certain categories of disabled or disadvantaged workers
still experience particular difficulty in entering the labour
market. For this reason there is a justification for public
authorities to apply measures providing incentives to
undertakings to increase their levels of employment, in
particular of workers from these disadvantaged cate­
gories. Employment costs
the normal
operating costs of any undertaking. It is therefore partic­
ularly important that aid for the employment of disabled
and disadvantaged workers should have a positive effect
on employment levels of those categories of workers and

form part of

(66)

It is appropriate to lay down transitional provisions for
individual aid which was granted before the entry into
force of this Regulation and was not notified in breach of
the obligation provided for in Article 88(3) of the Treaty.
With the repeal of Regulation (EC) No 1628/2006, the
existing regional
exempted,
should be allowed to continue being implemented
under the conditions foreseen by that Regulation,
in
line with Article 9(2), second subparagraph, of that Regu­
lation.

schemes, as

investment

(67)

In the light of the Commission’s experience in this area,
and in particular the frequency with which it is generally
necessary to revise State aid policy, it is appropriate to
limit the period of application of this Regulation. Should
this Regulation expire without being extended, aid
schemes already exempted by this Regulation should
continue to be exempted for a further period of six
months, in order to give Member States time to adapt.

(68)

Regulation (EC) No 70/2001, Regulation (EC) No
68/2001 and Regulation (EC) No 2204/2002 expired
on 30 June 2008 and Regulation (EC) No 1628/2006
should be repealed,

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HAS ADOPTED THIS REGULATION:

TABLE OF CONTENTS

Chapter I

COMMON PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Article 1

Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Article 2

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Article 3

Conditions for exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Article 4

Aid intensity and eligible costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Article 5

Transparency of aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Article 6

Individual notification thresholds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Article 7

Cumulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Article 8

Incentive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Article 9

Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Article 10

Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Article 11

Annual reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Article 12

Specific conditions applicable to investment aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Chapter II

SPECIFIC PROVISIONS FOR THE DIFFERENT CATEGORIES OF AID . . . . . . . . . . . . . . 23

Section 1

Regional aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Article 13

Regional investment and employment aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Article 14

Aid for newly created small enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Section 2

SME investment and employment aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Article 15

SME investment and employment aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Section 3

Aid for female entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Article 16

Aid for small enterprises newly created by female entrepreneurs . . . . . . . . . . . . . . . . . . 25

Section 4

Aid for environmental protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Article 17

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Article 18

Article 19

Investment aid enabling undertakings
for
environmental protection or increase the level of environmental protection in the absence
of Community standards

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

to go beyond Community standards

Aid for the acquisition of new transport vehicles which go beyond Community standards or
which increase the level of environmental protection in the absence of Community
standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Article 20

Aid for early adaptation to future Community standards for SMEs

. . . . . . . . . . . . . . . . 28

Article 21

Environmental investment aid for energy saving measures

. . . . . . . . . . . . . . . . . . . . . . 28

Article 22

Environmental investment aid for high-efficiency cogeneration . . . . . . . . . . . . . . . . . . . 29

Article 23

Environmental investment aid for the promotion of energy from renewable energy sources 29

Article 24

Aid for environmental studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Article 25

Aid in the form of reductions in environmental taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Section 5

Aid for consultancy in favour of SMEs and SME participation in fairs . . . . . . . . . . . . . . 30

Article 26

Aid for consultancy in favour of SMEs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Article 27

Aid for SME participation in fairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

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Section 6

Aid in the form of risk capital

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Article 28

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Article 29

Aid in the form of risk capital

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Section 7

Aid for research and development and innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Article 30

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Article 31

Aid for research and development projects

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Article 32

Aid for technical feasibility studies

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Article 33

Aid for industrial property rights costs for SMEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Article 34

Aid for research and development in the agricultural and fisheries sectors . . . . . . . . . . . 33

Article 35

Aid to young innovative enterprises

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Article 36

Aid for innovation advisory services and for innovation support services

. . . . . . . . . . . 34

Article 37

Aid for the loan of highly qualified personnel

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Section 8

Training aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Article 38

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Article 39

Training aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Section 9

Aid for disadvantaged and disabled workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Article 40

Aid for the recruitment of disadvantaged workers in the form of wage subsidies . . . . . . 36

Article 41

Aid for the employment of disabled workers in the form of wage subsidies . . . . . . . . . . 36

Article 42

Aid for compensating the additional costs of employing disabled workers . . . . . . . . . . . 36

Chapter III

FINAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Article 43

Repeal

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Article 44

Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Article 45

Entry into force and applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Annex I

Definition of SME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Annex II

Form for the provision of summary information for research and development aid under
the extended reporting obligation laid down in Article 9(4)
Form for the provision of summary information for aid for large investment projects under
the extended reporting obligation laid down in Article 9(4)

. . . . . . . . . . . . . . . . . . . . . 41

Annex III

Form for the provision of summary information under the reporting obligation laid down
in Article 9(1)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

CHAPTER I

COMMON PROVISIONS

Article 1

Scope

(c) aid for the creation of enterprises by female entrepreneurs;

(d) aid for environmental protection;

(e) aid for consultancy in favour of SMEs and SME participation

in fairs;

This Regulation shall apply to the following categories of

1.
aid:

(f) aid in the form of risk capital;

(a) regional aid;

(g) aid for research, development and innovation;

(h) training aid;

(b) SME investment and employment aid;

(i) aid for disadvantaged or disabled workers.

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2.

It shall not apply to:

(a) aid to export-related activities, namely aid directly linked to
the quantities exported, to the establishment and operation
of a distribution network or to other current costs linked to
the export activity;

(b) aid contingent upon the use of domestic over imported

goods.

This Regulation shall apply to aid in all sectors of the

3.
economy with the exception of the following:

(a) aid favouring activities
as

in the fishery and aquaculture
sectors,
covered by Council Regulation (EC) No
104/2000 (1), except for training aid, aid in the form of
risk capital, aid for research and development and inno­
vation and aid for disadvantaged and disabled workers;

(b) aid favouring activities in the primary production of agri­
cultural products, except for training aid, aid in the form of
risk capital, aid for research and development, environmen­
tal aid, and aid for disadvantaged and disabled workers to
the extent that these categories of aid are not covered by
Commission Regulation (EC) No 1857/2006;

This Regulation shall not apply to regional aid schemes
4.
which are targeted at specific sectors of economic activity
within manufacturing or services. Schemes aimed at tourism
activities are not considered targeted at specific sectors.

This Regulation shall not apply to ad hoc aid granted to

5.
large enterprises, except as provided for in Article 13(1).

6.

This Regulation shall not apply to the following aid:

(a) aid schemes which do not explicitly exclude the payment of
individual aid in favour of an undertaking which is subject
to an outstanding recovery order
following a previous
Commission Decision declaring an aid illegal and incom­
patible with the common market;

(b) ad hoc aid in favour of an undertaking which is subject to
an outstanding
a previous
Commission Decision declaring an aid illegal and incom­
patible with the common market;

recovery order

following

(c) aid to undertakings in difficulty.

(c) aid favouring activities in the processing and marketing of

agricultural products, in the following cases:

7.
For the purposes of point (c) of paragraph 6, an SME shall
be considered to be an undertaking in difficulty if it fulfils the
following conditions:

(i) when the amount of the aid is fixed on the basis of the
price or quantity of such products purchased from
primary producers or put on the market by the under­
takings concerned; or

(a)

in the case of a limited liability company, where more than
half of its registered capital has disappeared and more than
one quarter of that capital has been lost over the preceding
12 months; or

(ii) when the aid is conditional on being partly or entirely

passed on to primary producers;

(d) aid favouring activities in the coal sector with the exception
of training aid, research and development and innovation
aid and environmental aid;

(b) in the case of a company where at least some members
the company,
have unlimited liability for
where more than half of
its capital as shown in the
company accounts has disappeared and more than one
quarter of that capital has been lost over the preceding
12 months; or

the debt of

(e) regional aid favouring activities in the steel sector;

(f)

regional aid favouring activities in the shipbuilding sector;

(c) whatever the type of company concerned, where it fulfils
the criteria under its domestic law for being the subject of
collective insolvency proceedings.

(g) regional aid favouring activities in the synthetic fibres sector.

(1) OJ L 17, 21.1.2000, p. 22.

An SME which has been incorporated for less than three years
shall not be considered, for the purposes of this Regulation, to
be in difficulty with regard to that period unless it meets the
condition set out in point (c) of the first subparagraph.

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Article 2

Definitions

11.

‘intangible assets’ means assets entailed by the transfer of
technology through the
rights,
licences, know-how or unpatented technical knowledge;

acquisition of patent

For the purposes of this Regulation the following definitions
shall apply:

1.

‘aid’ means any measure fulfilling all the criteria laid down
in Article 87(1) of the Treaty;

2.

‘aid scheme’ means any act on the basis of which, without
further implementing measures being required,
individual
aid awards may be made to undertakings defined within
the act in a general and abstract manner and any act on the
basis of which aid which is not linked to a specific project
may be awarded to one or several undertakings for an
indefinite period of time and/or for an indefinite amount;

3.

‘individual aid’ means:

(a) ad hoc aid; and

(b) notifiable awards of aid on the basis of an aid scheme;

4.

‘ad hoc aid’ means individual aid not awarded on the basis
of an aid scheme;

12.

‘large investment project’ means an investment in capital
assets with eligible costs above EUR 50 million, calculated
at prices and exchange rates on the date when the aid is
granted;

13.

‘number of employees’ means the number of annual labour
units (ALU), namely the number of persons employed full
time in one year, part-time and seasonal work being ALU
fractions;

14.

‘employment directly created by an investment project’
means employment concerning the activity to which the
investment relates, including employment created following
an increase in the utilisation rate of the capacity created by
the investment;

15.

‘wage cost’ means the total amount actually payable by the
beneficiary of
the employment
the aid in respect of
concerned, comprising:

(a)

the gross wage, before tax;

(b) the compulsory contributions, such as social security

charges; and

5.

6.

‘aid intensity’ means
percentage of the eligible costs;

the aid amount expressed as a

(c) child care and parent care costs;

‘transparent aid’ means aid in respect of which it is possible
to calculate precisely the gross grant equivalent ex ante
without need to undertake a risk assessment;

16.

‘SME investment and employment aid’ means aid fulfilling
the conditions laid down in Article 15;

7.

‘SMEs’ means
‘small and medium-sized enterprises’ or
undertakings fulfilling the criteria laid down in Annex I;

17.

aid’ means,

‘investment
and
employment aid under Article 13, SME investment and
employment aid under Article 15 and investment aid for
environmental protection under Articles 18 to 23;

investment

regional

8.

‘large enterprises’ means undertakings not
criteria laid down in Annex I;

fulfilling the

18.

‘disadvantaged worker’ means any person who:

9.

‘assisted areas’ means regions eligible for regional aid, as
determined in the approved regional aid map for the
Member State concerned for the period 2007-2013;

10.

‘tangible assets’ means, without prejudice to Article 17(12),
assets relating to land, buildings and plant, machinery and
equipment;
in the transport sector transport means and
transport equipment are considered eligible assets, except
with regard to regional aid and except for road freight and
air transport;

(a) has not been in regular paid employment

for the

previous 6 months; or

(b) has not attained an upper secondary educational or

vocational qualification (ISCED 3); or

(c)

is over the age of 50 years; or

(d) lives as a single adult with one or more dependents; or

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(e) works in a sector or profession in a Member State
where the gender imbalance is at least 25 % higher
than
all
economic sectors in that Member State, and belongs
to that underrepresented gender group; or

imbalance

average

gender

across

the

(f)

is a member of an ethnic minority within a Member
State and who requires development of his or her
training or work experience
linguistic, vocational
profile to enhance prospects of gaining access
to
stable employment;

19.

‘severely disadvantaged worker’ means any person who has
been unemployed for 24 months or more;

20.

‘disabled worker’ means any person:

(a) recognised as disabled under national law; or

(b) having a recognised limitation which results
physical, mental or psychological impairment;

from

21.

‘sheltered employment’ means employment in an under­
taking where at least 50 % of workers are disabled;

22.

‘agricultural product’ means:

a primary producer to final consumers shall be considered
to be marketing if
takes place in separate premises
reserved for that purpose;

it

25.

‘tourism activities’ means the following activities in terms of
NACE Rev. 2:

(a) NACE 55:Accommodation;

(b) NACE 56: Food and beverage service activities;

(c) NACE 79: Travel agency,
service and related activities;

tour operator reservation

(d) NACE 90: Creative, arts and entertainment activities;

(e) NACE 91: Libraries, archives, museums and other

cultural activities;

(f) NACE 93: Sports
recreation activities;

activities

and amusement

and

26.

‘repayable advance’ means a loan for a project which is paid
in one or more instalments and the conditions for the
reimbursement of which depend on the outcome of the
research and development and innovation project;

(a)

the products listed in Annex I to the Treaty, except
fishery and aquaculture products covered by Regulation
(EC) No 104/2000;

27.

‘risk capital’ means finance provided through equity and
quasi-equity financing to undertakings during their early-
growth stages (seed, start-up and expansion phases);

(b) products falling under CN codes 4502, 4503 and 4504

(cork products);

28.

‘enterprise newly created by female entrepreneurs’ means a
small enterprise fulfilling the following conditions:

(c) products intended to imitate or substitute milk and
milk products, as referred to in Council Regulation
(EC) No 1234/2007 (1);

(a) one or more women own at least 51 % of the capital of
the small enterprise concerned or are the registered
owners of the small enterprise concerned; and

23.

‘processing of agricultural products’ means any operation
on an agricultural product resulting in a product which is
also an agricultural product, except on-farm activities
necessary for preparing an animal or plant product for
the first sale;

24.

‘marketing of agricultural products’ means holding or
display with a view to sale, offering for sale, delivery or
any other manner of placing on the market, except the first
sale by a primary producer to resellers or processors and
any activity preparing a product for such first sale; a sale by

(1) OJ L 299, 16.11.2007, p. 1.

(b) a woman is in charge of the management of the small

enterprise;

29.

‘steel sector’ means all activities related to the production of
one or more of the following products:

(a) pig iron and ferro-alloys:

pig iron for steelmaking, foundry and other pig iron,
spiegeleisen and high-carbon ferro-manganese, not
including other ferro-alloys;

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(b) crude and semi finished products of iron, ordinary steel

or special steel:

Article 3

Conditions for exemption

liquid steel cast or not cast into ingots, including ingots
for forging semi finished products: blooms, billets and
slabs; sheet bars and tinplate bars; hot-rolled wide coils,
with the exception of production of liquid steel for
castings from small and medium-sized foundries;

(c) hot finished products of iron, ordinary steel or special

steel:

1.
Aid schemes fulfilling all the conditions of Chapter I of
this Regulation, as well as the relevant provisions of Chapter II
of
this Regulation, shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty provided that any individual aid
awarded under such scheme fulfils all the conditions of this
Regulation, and the scheme contains an express reference to
this Regulation, by citing its title and publication reference in
the Official Journal of the European Union.

exempt

sleepers,

fishplates,

soleplates,

rails,
joists, heavy
sections 80 mm and over, sheet piling, bars and
sections of less than 80 mm and flats of less than
150 mm, wire rod,
tube rounds and squares, hot-
rolled hoop and strip (including tube strip), hot-rolled
sheet (coated or uncoated), plates and sheets of 3 mm
thickness and over, universal plates of 150 mm and
over, with the exception of wire and wire products,
bright bars and iron castings;

(d) cold finished products:

tinplate, terneplate, blackplate, galvanized sheets, other
coated sheets, colled-rolled sheets, electrical sheets and
strip for tinplate, cold-rolled plate, in coil and in strip;

(e)

tubes:

all seamless steel
diameter of over 406.4 mm;

tubes, welded steel

tubes with a

2.
Individual aid granted under a scheme referred to in
paragraph 1 shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall
be exempt from the notification requirement of Article 88(3)
of the Treaty provided that the aid fulfils all the conditions of
Chapter I of this Regulation, as well as the relevant provisions
of Chapter II of this Regulation, and that the individual aid
measure contains an express reference to the relevant provisions
of this Regulation, by citing the relevant provisions, the title of
this Regulation and its publication reference in the Official
Journal of the European Union.

Ad hoc aid fulfilling all the conditions of Chapter I of this
3.
Regulation, as well as the relevant provisions of Chapter II of
this Regulation, shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that the aid contains an express reference to
the relevant provisions of this Regulation, by citing the relevant
provisions,
this Regulation and its publication
reference in the Official Journal of the European Union.

the title of

30.

‘synthetic fibres sector’ means:

(a) extrusion/texturisation of all generic types of fibre and
yarn based on polyester, polyamide, acrylic or polypro­
pylene, irrespective of their end-uses; or

(b) polymerisation (including polycondensation) where it is
integrated with extrusion in terms of the machinery
used; or

Article 4

Aid intensity and eligible costs

For the purposes of calculating aid intensity, all figures
1.
used shall be taken before any deduction of
tax or other
charge. Where aid is awarded in a form other than a grant,
the aid amount shall be the grant equivalent of the aid. Aid
payable in several instalments shall be discounted to its value at
the moment of granting. The interest rate to be used for
discounting purposes shall be the reference rate applicable at
the time of grant.

(c) any ancillary process linked to the contemporaneous
installation of extrusion/texturisation capacity by the
prospective beneficiary or by another company in the
group to which it belongs and which, in the specific
business activity concerned, is normally integrated with
such capacity in terms of the machinery used.

In cases where aid is awarded by means of tax exemptions
2.
or reductions on future taxes due, subject to the respect of a
certain aid intensity defined in gross
equivalent,
discounting of aid tranches shall take place on the basis of
the reference rates applicable at
the various times the tax
advantages become effective.

grant

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The eligible costs shall be supported by documentary

3.
evidence which shall be clear and itemised.

Article 5

Transparency of aid

1.

This Regulation shall apply only to transparent aid.

In particular, the following categories of aid shall be considered
to be transparent:

(a) aid comprised in grants and interest rate subsidies;

(b) aid comprised in loans, where the gross grant equivalent has
been calculated on the basis of the reference rate prevailing
at the time of the grant;

(c) aid comprised in guarantee schemes:

(i) where the methodology to calculate the gross grant
equivalent has been accepted following notification of
this methodology to the Commission in the context of
the application of this Regulation or Regulation (EC) No
1628/2006 and the approved methodology explicitly
the type of guarantees and the type of
addresses
underlying transactions at stake; or

(ii) where the beneficiary is a small or medium-sized
enterprise and the gross grant equivalent has been
calculated on the basis of the safe-harbour premiums
laid down in the Commission Notice on the application
of Articles 87 and 88 of the EC Treaty to State aid in the
form of guarantees;

(d) aid comprised in fiscal measures, where the measure
provides for a cap ensuring that the applicable threshold
is not exceeded.

The following categories of aid shall not be considered to

2.
be transparent:

advance does not exceed the applicable thresholds under this
the threshold is expressed in terms of aid
Regulation.
intensity,
advance,
the
total
repayable
expressed as a percentage of
the eligible costs, shall not
exceed the applicable aid intensity.

amount of

If
the

Article 6

Individual notification thresholds

This Regulation shall not apply to any individual aid,
the
following

1.
whether granted ad hoc or on the basis of a scheme,
gross grant
equivalent of which exceeds
thresholds:

the

(a) SME investment and employment aid: EUR 7,5 million per

undertaking per investment project;

(b) investment aid for environmental protection: EUR 7,5

million per undertaking per investment project;

(c) aid for consultancy in favour of SMEs: EUR 2 million per

undertaking per project;

(d) aid for SME participation in fairs: EUR 2 million per under­

taking per project;

(e) research and development project aid and feasibility studies:

(i) if the project is predominantly fundamental research
EUR 20 million per undertaking, per project/feasibility
study;

(ii) if the project is predominantly industrial research, EUR
10 million per undertaking, per project/feasibility study;

(iii) for all other projects, EUR 7,5 million per undertaking,

per project/feasibility study;

(iv) if the project is a EUREKA project twice the amounts

laid down in points (i), (ii) and (iii) respectively.

(a) aid comprised in capital injections, without prejudice to the

specific provisions concerning risk capital;

(f) aid for industrial property rights costs for SMEs: EUR 5

million per undertaking per project;

(b) aid comprised in risk capital measures, with the exception

of aid fulfilling the conditions of Article 29.

(g) training aid: EUR 2 million per training project;

3.
Aid in the form of repayable advances shall be considered
to be transparent aid only if the total amount of the repayable

(h) aid for the recruitment of disadvantaged workers: EUR 5

million per undertaking per year;

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(i) aid for the employment of disabled workers in the form of
wage costs: EUR 10 million per undertaking per year;

under this Regulation, provided that such cumulation does not
result in an aid intensity exceeding 100 % of the relevant costs
over any period for which the workers concerned are employed.

(j) aid compensating for additional costs of employing disabled

workers: EUR 10 million per undertaking per year.

For the purposes of determining the appropriate threshold
applicable to research and development project aid and feasi­
bility studies pursuant to point (e), a project shall be considered
to consist ‘predominantly’ of fundamental research or ‘predomi­
nantly’ of industrial research, if more than 50 % of the eligible
project costs are incurred through activities which fall within
the category of fundamental research or industrial research re­
spectively.
In cases where the predominant character of the
project cannot be established, the lower threshold shall apply.

Regional

investment aid awarded in favour of

2.
large
investment projects shall be notified to the Commission if the
the
total amount of aid from all sources exceeds 75 % of
maximum amount of aid an investment with eligible costs of
EUR 100 million could receive, applying the standard aid
threshold in force for
in the approved
regional aid map on the date the aid is to be granted.

large enterprises

Article 7

Cumulation

the

In determining whether

1.
individual notification
thresholds laid down in Article 6 and the maximum aid inten­
sities laid down in Chapter II are respected, the total amount of
public support measures for the aided activity or project shall be
taken into account,
is
financed from local, regional, national or Community sources.

regardless of whether

that support

5.
As regards the cumulation of aid measures exempted
under this Regulation with identifiable eligible costs and aid
measures exempted under this Regulation without identifiable
eligible costs, the following conditions shall apply:

the first

three years after

(a) where a target undertaking has received capital under a risk
capital measure under Article 29 and subsequently applies,
during the first
risk capital
investment,
for aid within the scope of this Regulation,
the relevant aid thresholds or maximum eligible amounts
under this Regulation shall be reduced by 50 % in general
and by 20 % for target undertakings located in assisted
areas; the reduction shall not exceed the total amount of
risk capital received; this reduction shall not apply to aid for
research, development and innovation exempted under
Articles 31 to 37;

(b) during the first 3 years after being granted, aid for young
innovative enterprises may not be cumulated with other aid
exempted under this Regulation, with the only exception of
aid exempted under Article 29 and aid exempted under
Articles 31 to 37.

Article 8

Incentive effect

This Regulation shall exempt only aid which has an

1.
incentive effect.

2.
Aid exempted by this Regulation may be cumulated with
any other aid exempted under this Regulation as long as those
aid measures concern different identifiable eligible costs.

2.
Aid granted to SMEs, covered by this Regulation, shall be
considered to have an incentive effect if, before work on the
project or activity has started, the beneficiary has submitted an
application for the aid to the Member State concerned.

3.
Aid exempted by this Regulation shall not be cumulated
with any other aid exempted under this Regulation or de
minimis aid fulfilling the conditions laid down in Commission
Regulation (EC) No 1998/2006 (1) or with other Community
funding in relation to the same — partly or fully overlapping —
eligible costs if such cumulation would result in exceeding the
highest aid intensity or aid amount applicable to this aid under
this Regulation.

3.
Aid granted to large enterprises, covered by this Regu­
in
lation, shall be considered to have an incentive effect if,
addition to fulfilling the condition laid down in paragraph 2,
the Member State has verified, before granting the individual aid
concerned,
that documentation prepared by the beneficiary
establishes one or more of the following criteria:

By way of derogation from paragraph 3, aid in favour of
4.
disabled workers, as provided for in Articles 41 and 42, may be
cumulated with aid exempted under this Regulation in relation
to the same eligible costs above the highest applicable threshold

(a) a material increase in the size of the project/activity due to

the aid;

(1) OJ L 379, 28.12.2006, p. 5.

the aid;

(b) a material increase in the scope of the project/activity due to

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(c) a material increase in the total amount spent by the bene­

ficiary on the project/activity due to the aid;

(d) a material

increase in the speed of completion of

the

project/activity concerned;

been exempted pursuant to this Regulation, the Member State
concerned shall forward to the Commission a summary of the
information regarding such aid measure. That summary shall be
provided in electronic form, via the established Commission IT
application and in the form laid down in Annex III.

(e) as regards regional investment aid referred to in Article 13,
that the project would not have been carried out as such in
the assisted region concerned in the absence of the aid.

The Commission shall acknowledge receipt of the summary
without delay.

The conditions laid down in paragraphs 2 and 3 shall not
4.
apply in relation to fiscal measures if the following conditions
are fulfilled:

The summaries shall be published by the Commission in the
Official Journal of the European Union and on the Commission’s
website.

(a)

the fiscal measure establishes a legal
accordance with objective criteria and without
exercise of discretion by the Member State; and

right

to aid in
further

(b) the fiscal measure has been adopted before work on the
aided project or activity has started; this condition shall
not apply in the case of fiscal successor schemes.

5.
As regards aid compensating for the additional costs of
employing disabled workers, as referred to in Article 42, the
conditions laid down in paragraphs 2 and 3 of this Article shall
the conditions laid down in
be considered to be met
Article 42(3) are fulfilled.

if

As regards aid for the recruitment of disadvantaged workers in
the form of wage subsidies and aid for the employment of
disabled workers in the form of wage subsidies, as referred to
in Articles 40 and 41, the conditions laid down in paragraphs 2
and 3 of this Article shall be considered to be met if the aid
leads to a net increase in the number of disadvantaged/disabled
workers employed.

As regards aid in the form of reductions in environmental taxes,
as referred to in Article 25, the conditions laid down in para­
graphs 2, 3 and 4 of this Article shall be considered to be met.

As regards aid in the form of risk capital, as referred to in
Article 29, the conditions laid down in paragraph 2 of this
Article shall be considered to be met.

If the conditions of paragraphs 2 and 3 are not fulfilled,
6.
the entire aid measure shall not be exempted under this Regu­
lation.

Upon the entry into force of an aid scheme or the
2.
awarding of an ad hoc aid, which has been exempted
pursuant to this Regulation, the Member State concerned shall
publish on the internet the full text of such aid measure. In the
case of an aid scheme, this text shall set out the conditions laid
down in national law which ensure that the relevant provisions
of
this Regulation are complied with. The Member State
concerned shall ensure that the full text of the aid measure is
accessible on the internet as long as the aid measure concerned
is in force. The summary information provided by the Member
to paragraph 1 shall specify an
State concerned pursuant
internet address leading directly to the full
the aid
measure.

text of

3. When granting individual aid exempted pursuant to this
Regulation, with the exception of aid taking the form of fiscal
measures,
the act granting the aid shall contain an explicit
reference to the specific provisions of Chapter II concerned by
that act, to the national
law which ensures that the relevant
provisions of this Regulation are complied with and to the
internet address leading directly to the full
the aid
measure.

text of

4. Without prejudice to the obligations contained in para­
graphs 1, 2 and 3, whenever individual aid is granted under an
existing aid scheme for research and development projects
covered by Article 31 and the individual aid exceeds EUR 3
million and whenever individual regional
investment aid is
granted, on the basis of an existing aid scheme for large
individually notifiable
investment projects, which is not
pursuant
the Member States shall, within 20
working days from the day on which the aid is granted by
the competent authority, provide the Commission with the
summary information requested in the standard form laid
down in Annex II, via the established Commission IT appli­
cation.

to Article 6,

Article 9

Transparency

Article 10

Monitoring

1. Within 20 working days following the entry into force of
an aid scheme or the awarding of an ad hoc aid, which has

The Commission shall regularly monitor aid measures of

1.
which it has been informed pursuant to Article 9.

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2. Member States shall maintain detailed records regarding
any individual aid or aid scheme exempted under this Regu­
lation. Such records shall contain all information necessary to
establish that the conditions laid down in this Regulation are
fulfilled, including information on the status of any undertaking
whose entitlement to aid or a bonus depends on its status as an
SME, information on the incentive effect of the aid and infor­
mation making it possible to establish the precise amount of
eligible costs for the purpose of applying this Regulation.

Records regarding individual aid shall be maintained for 10
years from the date on which the aid was granted. Records
regarding an aid scheme shall be maintained for 10 years
from the date on which the last aid was granted under such
scheme.

On written request, the Member State concerned shall
3.
provide the Commission within a period of 20 working days
or such longer period as may be fixed in the request, with all
the information which the Commission considers necessary to
monitor the application of this Regulation.

incomplete

information,

Where the Member State concerned does not provide the infor­
the
mation requested within the period prescribed by
Commission or within a commonly agreed period, or where
the Member State provides
the
Commission shall send a reminder setting a new deadline for
the submission of the information. If, despite such reminder, the
Member State concerned does not provide the information
requested,
the Commission may, after having provided the
Member State concerned with the possibility to make its
views known, adopt a decision stating that all or part of the
future aid measures to which this Regulation applies are to be
notified to the Commission in accordance with Article 88(3) of
the Treaty.

Article 11

Annual reporting

In accordance with Chapter III of Commission Regulation (EC)
No 794/2004 (1), Member States shall compile a report in elec­
tronic form on the application of this Regulation in respect of
each whole year or each part of the year during which this
Regulation applies. The internet address leading directly to the
full text of the aid measures shall also be included in such
annual report.

Article 12

Specific conditions applicable to investment aid

1.
In order to be considered an eligible cost for the purposes
of this Regulation, an investment shall consist of the following:

existing establishment, diversification of the output of an
establishment
into new additional products or a funda­
mental change in the overall production process of an
existing establishment; or

(b) the acquisition of the capital assets directly linked to an
establishment, where
the establishment has closed or
would have closed had it not been purchased, and the
assets are bought by an independent investor; in the case
of business succession of a small enterprise in favour of
family of
former
employees, the condition that the assets shall be bought
by an independent investor shall be waived.

the original owner(s) or in favour of

The sole acquisition of the shares of an undertaking shall not
constitute investment.

In order to be considered eligible costs for the purposes of
intangible assets shall fulfil all the following

2.
this Regulation,
conditions:

(a)

they must be used exclusively in the undertaking receiving
the aid; as regards regional
investment aid, they must be
used exclusively in the establishment receiving the aid;

(b) they must be regarded as amortizable assets;

(c)

they must be purchased from third parties under market
conditions, without
the acquirer being in a position to
exercise control, within the meaning of Article 3 of
Council Regulation (EC) No 139/2004 (2), on the seller,
vice versa; or

(d) in the case of SME investment aid, they must be included in
the assets of the undertaking for at least three years; in the
case of regional investment aid, they must be included in
the assets of
the undertaking and remain in the estab­
lishment receiving the aid for at least five years or, in the
case of SMEs, at least three years.

In order to be considered an eligible cost for the purposes
an
employment directly

3.
of
created by
investment project shall fulfil all the following conditions:

this Regulation,

(a) an investment in tangible and/or intangible assets relating to
the setting-up of a new establishment, the extension of an

(a) employment

shall be

created within three

years of

completion of the investment;

(1) OJ L 140, 30.4.2004, p. 1.

(2) OJ L 24, 29.1.2004, p. 1.

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lead to a net increase in the
(b) the investment project shall
number of employees
in the establishment concerned,
compared with the average over the previous 12 months;

the thresholds fixed in paragraph 3 may be increased by 20
percentage points for aid awarded to small enterprises and by
10 percentage points for aid awarded to medium-sized enter­
prises.

(c)

the employment created shall be maintained during a
minimum period of five years in the case of large enterprise
and a minimum period of three years in case of SMEs.

CHAPTER II

SPECIFIC PROVISIONS FOR THE DIFFERENT CATEGORIES OF
AID

SECTION 1

Regional aid

Article 13

Regional investment and employment aid

Regional

1.
investment and employment aid schemes shall
be compatible with the common market within the meaning of
Article 87(3) of the Treaty and shall be exempt from the noti­
fication requirement of Article 88(3) of the Treaty, provided
that the conditions laid down in this Article are fulfilled.

Ad hoc aid which is only used to supplement aid granted on
the basis of regional investment and employment aid schemes
and which does not exceed 50 % of the total aid to be granted
for the investment, shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of
the ad hoc aid
awarded fulfils all the conditions of this Regulation.

the Treaty provided that

exempt

2.
The aid shall be granted in regions eligible for regional
aid, as determined in the approved regional aid map for the
the period 2007-2013. The
Member State concerned for
investment must be maintained in the recipient region for at
least five years, or three years in the case of SMEs, after the
whole investment has been completed. This shall not prevent
the replacement of plant or equipment which has become out-
the
dated due to rapid technological change, provided that
economic activity is retained in the region concerned for the
minimum period.

3.
The aid intensity in present gross grant equivalent shall
not exceed the regional aid threshold which is in force at the
time the aid is granted in the assisted region concerned.

4. With the exception of aid granted in favour of
large
investment projects and regional aid for the transport sector,

5.
The thresholds fixed in paragraph 3 shall apply to the
intensity of the aid calculated either as a percentage of the
investment’s eligible tangible and intangible costs or as a
percentage of the estimated wage costs of the person hired,
calculated over a period of
for employment
directly created by the investment project or a combination
the aid does not exceed the most
thereof, provided that
favourable amount resulting from the application of either
calculation.

two years,

6. Where the aid is calculated on the basis of tangible or
intangible investment costs, or of acquisition costs in case of
takeovers, the beneficiary must provide a financial contribution
of at least 25 % of the eligible costs, either through its own
resources or by external financing, in a form which is free of
any public support. However, where the maximum aid intensity
approved under the national regional aid map for the Member
increased in accordance with paragraph 4,
State concerned,
exceeds 75 %, the financial contribution of the beneficiary is
reduced accordingly.
If the aid is calculated on the basis of
tangible or intangible investment costs, the conditions set out
in paragraph 7 shall also apply.

In the case of acquisition of an establishment, only the
7.
costs of buying assets from third parties shall be taken into
consideration, provided that
the transaction has taken place
under market conditions. Where the acquisition is accompanied
by other investment, the costs relating to the latter shall be
added to the cost of the purchase.

Costs related to the acquisition of assets under lease, other than
land and buildings, shall be taken into consideration only if the
lease takes the form of financial leasing and contains an obli­
gation to purchase the asset at the expiry of the term of the
the lease must
lease. For the lease of
continue for at least five years after the anticipated date of
the completion of the investment project or three years in the
case of SMEs.

land and buildings,

Except in the case of SMEs and takeovers, the assets acquired
shall be new. In the case of takeovers, assets for the acquisition
of which aid has already been granted prior to the purchase
shall be deducted. For SMEs, the full costs of investments in
intangible assets may also be taken into consideration. For large
enterprises, such costs are eligible only up to a limit of 50 % of
the total eligible investment costs for the project.

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8. Where the aid is calculated on the basis of wage costs, the
employment shall be directly created by the investment project.

(b) EUR 1 million for small enterprises with their economic
activity in regions eligible for the derogation provided for
in Article 87(3)(c) of the Treaty.

9.
the
By way of derogation from paragraphs 3 and 4,
maximum aid intensities for investments in the processing
and marketing of agricultural products may be set at:

Annual amounts of aid per undertaking shall not exceed 33 %
of the amounts of aid laid down in points (a) and (b).

(a) 50 % of eligible investments

the Treaty and 40 % of

in regions eligible under
Article 87(3)(a) of
eligible
investments in other regions eligible for regional aid, as
the
determined in the regional aid map approved for
Member States concerned for the period 2007-2013,
if
the beneficiary is an SME;

(b) 25 % of eligible investments

the Treaty and 20 % of

in regions eligible under
Article 87(3)(a) of
eligible
investments in other regions eligible for regional aid, as
the
determined in the regional aid map approved for
Member States concerned for the period 2007-2013,
if
the beneficiary has less than 750 employees and/or less
than EUR 200 million turnover, calculated in accordance
with Annex I to this Regulation.

In order to prevent a large investment being artificially
10.
divided into sub-projects, a large investment project shall be
considered to be a single
investment project when the
investment is undertaken within a period of three years by
the same undertaking or undertakings and consists of
fixed
assets combined in an economically indivisible way.

Article 14

Aid for newly created small enterprises

1.
Aid schemes in favour of newly created small enterprises
shall be compatible with the common market within the
meaning of Article 87(3) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of
the
Treaty, provided that the conditions laid down in paragraphs
2, 3 and 4 of this Article are fulfilled.

2.

The beneficiary shall be a small enterprise.

3.

The aid amount shall not exceed:

4.

The aid intensity shall not exceed:

(a)

in regions covered by Article 87(3)(a) of the Treaty, 35 % of
eligible costs incurred in the first
three years after the
creation of the undertaking, and 25 % in the two years
thereafter;

(b) in regions covered by Article 87(3)(c) of the Treaty, 25 % of
three years after the
eligible costs incurred in the first
creation of the undertaking, and 15 % in the two years
thereafter.

These intensities may be increased by 5 % in regions covered by
Article 87(3)(a) of the Treaty with a gross domestic product
(GDP) per capita of less than 60 % of the EU-25 average,
in
regions with a population density of less than 12.5 inhabi­
tants/km2 and in small islands with a population of less than
5 000 inhabitants, and other communities of the same size
suffering from similar isolation.

5.
The eligible costs shall be legal, advisory, consultancy and
administrative costs directly related to the creation of the small
insofar as they are
enterprise, as well as the following costs,
actually incurred within the first five years after the creation of
the undertaking:

(a)

interest on external finance and a dividend on own capital
employed not exceeding the reference rate;

(b) fees for renting production facilities/equipment;

(c) energy, water, heating, taxes (other than VAT and corporate
taxes on business income) and administrative charges;

(a) EUR 2 million for small enterprises with their economic
activity in regions eligible for the derogation provided for
in Article 87(3)(a) of the Treaty;

(d) depreciation, fees for leasing production facilities/equipment
the underlying
job creation and recruitment measures

as well as wage costs, provided that
investments or
have not benefited from other aid.

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Small enterprises controlled by shareholders of under­
6.
takings that have closed down in the previous 12 months
cannot benefit from aid under this Article if the enterprises
concerned are active in the same relevant market or
in
adjacent markets.

SECTION 2

SME investment and employment aid

Article 15

SME investment and employment aid

the Treaty and shall be exempt

SME investment and employment aid shall be compatible
1.
with the common market within the meaning of Article 87(3)
of
from the notification
requirement of Article 88(3) of the Treaty, provided that the
conditions laid down in paragraphs 2, 3 and 4 of this Article
are fulfilled.

2.

The aid intensity shall not exceed:

(a) 20 % of the eligible costs in the case of small enterprises;

SECTION 3

Aid for female entrepreneurship

Article 16

Aid for

small enterprises newly created by female

entrepreneurs

1.
Aid schemes in favour of small enterprises newly created
by female entrepreneurs shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty, provided that the conditions laid
down in paragraphs 2 to 5 of this Article are fulfilled.

exempt

The beneficiaries shall be small enterprises newly created

2.
by female entrepreneurs.

The aid amount shall not exceed EUR 1 million per

3.
undertaking.

Annual amounts of aid per undertaking shall not exceed 33 %
of the amounts of aid laid down in the first subparagraph.

(b) 10 % of

the eligible costs in the case of medium-sized

enterprises.

The aid intensity shall not exceed 15 % of eligible costs
4.
incurred in the first five years after the creation of the under­
taking.

3.

The eligible costs shall be the following:

(a)

the costs of investment in tangible and intangible assets; or

The eligible costs shall be legal, advisory, consultancy and
5.
administrative costs directly related to the creation of the small
enterprise, as well as the following costs,
insofar as they are
actually incurred within the first five years of the creation of the
undertaking:

(b) the estimated wage costs of employment directly created by
the investment project, calculated over a period of
two
years.

(a)

interest on external finance and a dividend on own capital
employed not exceeding the reference rate;

4. Where the
the processing and
marketing of agricultural products, the aid intensity shall not
exceed:

investment

concerns

(a) 75 % of eligible investments in the outermost regions;

(b) 65 % of eligible investments in the smaller Aegean Islands
within the meaning of Council Regulation (EC) No
1405/2006 (1);

(c) 50 % of eligible investments
Article 87(3)(a) of the Treaty;

in regions eligible under

(d) 40 % of eligible investments in all other regions.

(1) OJ L 265, 26.9.2006, p. 1.

(b) fees for renting production facilities/equipment;

(c) energy, water, heating, taxes (other than VAT and corporate
taxes on business income) and administrative charges;

(d) depreciation, fees for leasing production facilities/equipment
the underlying
job creation and recruitment measures

as well as wage costs, provided that
investments or
have not benefited from other aid;

(e) child care and parent care costs including, where applicable,

costs relating to parental leave.

6.
Small enterprises controlled by shareholders of under­
takings that have closed down in the previous 12 months
cannot benefit from aid under this Article if the enterprises
concerned are active in the same relevant market or
in
adjacent markets.

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SECTION 4

Aid for environmental protection

Article 17

Definitions

For the purposes of this Section, the following definitions shall
apply:

1.

‘environmental protection’ means any action designed to
remedy or prevent damage to physical surroundings or
natural resources by the beneficiary’s own activities,
to
reduce risk of such damage or to lead to a more efficient
use of natural resources, including energy-saving measures
and the use of renewable sources of energy;

2.

‘energy-saving measures’ mean action which enables under­
takings to reduce the amount of energy used notably in
their production cycle;

3.

‘Community standard’ means:

(a) a mandatory Community standard setting the levels to
be attained in environmental terms by individual under­
takings; or

(b) the obligation under Directive 2008/1/EC of

the
European Parliament and of the Council (1) to use the
best available techniques as set out in the most recent
relevant
information published by the Commission
pursuant to Article 17(2) of that Directive;

4.

5.

6.

‘renewable energy sources’ means the following renewable
non-fossil energy sources: wind, solar, geothermal, wave,
tidal, hydropower
gas,
sewage treatment plant gas and biogases;

installations, biomass,

landfill

‘biofuels’ means
produced from biomass;

liquid or gaseous

fuel

for

transport

‘sustainable biofuels’ means biofuels fulfilling the sustain­
ability criteria set out in Article 15 of the proposal for a
Directive of the European Parliament and the Council on
the promotion of
the use of energy from renewable
sources (2); once the Directive has been adopted by the
European Parliament and the Council and published in
the Official Journal of the European Union, the sustainability
criteria laid down in the Directive shall apply;

7.

‘energy from renewable energy sources’ means energy
produced by plants using only renewable energy sources,
as well as the share in terms of calorific value of energy
produced from renewable energy sources in hybrid plants
— which also use conventional energy sources; it includes
renewable electricity used for filling storage systems, but
excludes electricity produced as a result of storage systems;

8.

‘cogeneration’ means the simultaneous generation in one
process of thermal energy and electrical and/or mechanical
energy;

9.

‘high efficiency cogeneration’ means cogeneration meeting
the criteria of Annex III to Directive 2004/8/EC of the
European Parliament and of the Council (3) and satisfying
the harmonised efficiency reference values established by
Commission Decision 2007/74/EC (4);

10.

‘environmental tax’ means a tax whose specific tax base has
a clear negative effect on the environment or which seeks
to tax certain activities, goods or services so that the envi­
ronmental costs may be included in their price and/or so
are oriented towards
that producers
activities which better respect the environment;

and consumers

11.

‘Community minimum tax level’ means the minimum level
of
for
taxation provided for in Community legislation;
energy products and electricity, the Community minimum
tax level means the minimum level of taxation laid down in
Annex I to Directive 2003/96/EC;

12.

investments

‘tangible assets’ means
in land which are
strictly necessary in order to meet environmental objectives,
investments in buildings, plant and equipment intended to
reduce
and
pollution
investments to adapt production methods with a view to
protecting the environment.

nuisances,

eliminate

and

or

Article 18

Investment aid enabling undertakings to go beyond
Community standards for environmental protection or
increase the level of environmental protection in the
absence of Community standards

for

standards

Investment aid enabling undertakings
environmental

1.
to go beyond
or
Community
protection
increase the level of environmental protection in the absence
of Community standards shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of the Treaty, provided that the conditions laid
down in paragraphs 2 to 8 of this Article are fulfilled.

exempt

(1) OJ L 24, 29.1.2008, p. 8.
(2) COM(2008) 19 final.

(3) OJ L 52, 21.2.2004, p. 50.
(4) OJ L 32, 6.2.2007, p. 183.

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The aided investment shall

2.
conditions:

fulfil one of the following

In the case of investments aiming at obtaining a level of
8.
environmental protection higher than Community standards,
the counterfactual shall be chosen as follows:

(a)

the investment shall enable the beneficiary to increase the
level of environmental protection resulting from its activities
by going beyond the applicable Community standards, irre­
spective of the presence of mandatory national standards
that are more stringent than the Community standards;

(b) the investment shall enable the beneficiary to increase the
level of environmental protection resulting from its activities
in the absence of Community standards.

3.
Aid may not be granted where improvements are to
ensure that companies comply with Community standards
already adopted and not yet in force.

The aid intensity shall not exceed 35 % of the eligible

4.
costs.

However, the aid intensity may be increased by 20 percentage
points
for aid awarded to small enterprises and by 10
percentage points for aid awarded to medium-sized enterprises.

5.
The eligible costs shall be the extra investment costs
necessary to achieve a level of environmental protection
higher than the level required by the Community standards
concerned, without taking account of operating benefits and
operating costs.

For

the purposes of paragraph 5,

the
6.
investment directly related to environmental protection shall
be established by reference to the counterfactual situation:

the cost of

(a) where the cost of investing in environmental protection can
be easily identified in the total investment cost, this precise
environmental protection-related cost shall constitute the
eligible costs;

(corresponding
if

(b) in all other cases, the extra investment costs shall be estab­
lished by comparing the investment with the counterfactual
situation in the absence of State aid; the correct counter­
shall be the cost of a technically comparable
factual
investment that provides a lower degree of environmental
protection
to mandatory Community
they exist) and that would credibly be
standards,
realised without aid (‘reference investment’);
technically
comparable investment means an investment with the
same production capacity and all other technical characte­
ristics (except those directly related to the extra investment
for environmental protection); in addition, such a reference
from a business point of view, be a
investment must,
credible alternative to the investment under assessment.

The eligible investment shall take the form of investment

7.
in tangible assets and/or in intangible assets.

(a) where the undertaking is adapting to national standards
the
adopted in the absence of Community standards,
eligible costs shall consist of
investment
costs necessary to achieve the level of environmental
protection required by the national standards;

the additional

or

(b) where the undertaking adapts to or goes beyond national
than the relevant
standards which are more stringent
Community
beyond Community
standards
standards, the eligible costs shall consist of the additional
investment costs necessary to achieve a level of environ­
mental protection higher than the level required by the
Community standards. The cost of investments needed to
reach the level of protection required by the Community
standards shall not be eligible;

goes

(c) where no standards exist, the eligible costs shall consist of
the investment costs necessary to achieve a higher level of
environmental protection than that which the undertaking
or undertakings in question would achieve in the absence of
any environmental aid.

Aid for investments relating to the management of waste
9.
of other undertakings shall not be exempted under this Article.

Article 19

Aid for the acquisition of new transport vehicles which go
beyond Community standards or which increase the level
of environmental protection in the absence of Community
standards

standards

Investment aid for

1.
the acquisition of new transport
vehicles enabling undertakings active in the transport sector
to go beyond Community
environmental
protection or increase the level of environmental protection in
the absence of Community standards shall be compatible with
the common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty, provided that the conditions laid
down in paragraphs 2, 3 and 4 of this Article are fulfilled.

for

The aided investment shall fulfil the condition laid down

2.
in Article 18(2).

Aid for the acquisition of new transport vehicles for road,
3.
railway,
inland waterway and maritime transport complying
with adopted Community standards shall be exempted, when
such acquisition occurs before these Community standards enter
into force and where, once mandatory, they do not apply retro­
actively to vehicles already purchased.

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Aid for

retrofitting operations of

existing transport
4.
vehicles with an environmental protection objective shall be
exempted if the existing means of transport are upgraded to
environmental standards that were not yet in force at the date
of entry into operation of those means of transport or if the
means of
to any environmental
standards.

transport are not subject

The eligible costs shall be calculated as set out in Article 18(6)
and (7) and without taking account of operating benefits and
operating costs.

Article 21

Environmental investment aid for energy saving measures

The aid intensity shall not exceed 35 % of the eligible

5.
costs.

Environmental

1.
investment aid enabling undertakings to
achieve energy savings shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty, provided that it meets:

exempt

However, the aid intensity may be increased by 20 percentage
points
for aid awarded to small enterprises and by 10
percentage points for aid awarded to medium-sized enterprises.

(a)

the conditions laid down in paragraphs 2 and 3 of this
Article; or

6.
The eligible costs shall be the extra investment costs
necessary to achieve a level of environmental protection
higher than the level required by the Community standards.

The eligible costs shall be calculated as set out in Article 18(6)
and (7) and without taking account of operating benefits and
operating costs.

Article 20

Aid for early adaptation to future Community standards
for SMEs

1.
Aid allowing SMEs to comply with new Community
standards which increase the level of environmental protection
and are not yet in force shall be compatible with the common
market within the meaning of Article 87(3) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty, provided that the conditions laid
down in paragraphs 2, 3 and 4 of this Article are fulfilled.

exempt

2.
The Community standards shall have been adopted and
the investment shall be implemented and finalised at least one
year before the date of entry into force of
the standard
concerned.

3.
The aid intensity shall not exceed 15 % of the eligible
costs for small enterprises and 10 % of the eligible costs for
medium-sized enterprises if the implementation and finalisation
take place more than three years before the date of entry into
force of the standard and 10 % for small enterprises if the
implementation and finalisation take place between one and
three years before the date of entry into force of the standard.

4.
The eligible costs shall be the extra investment costs
necessary to achieve the level of environmental protection
required by the Community standard compared to the
existing level of environmental protection required prior to
the entry into force of this standard.

(b) the conditions laid down in paragraphs 4 and 5 thereof.

The aid intensity shall not exceed 60 % of the eligible

2.
costs.

However, the aid intensity may be increased by 20 percentage
for aid awarded to small enterprises and by 10
points
percentage points for aid awarded to medium-sized enterprises.

The eligible costs shall be the extra investment costs
3.
necessary to achieve energy savings beyond the level required
by the Community standards.

The eligible costs shall be calculated as set out in Article 18(6)
and (7).

The eligible costs shall be calculated net of any operating
benefits and costs related to the extra investment for energy
saving and arising during the first three years of the life of
this investment in the case of SMEs, the first four years in
the case of
large undertakings that are not part of the EU
CO2 Emission Trading System and the first five years in the
case of large undertakings that are part of the EU CO2 Emission
Trading System. For large undertakings this period may be
reduced to the first three years of the life of this investment
where the depreciation time of the investment can be demon­
strated not to exceed three years.

The eligible cost calculations shall be certified by an external
auditor.

The aid intensity shall not exceed 20 % of the eligible

4.
costs.

However, the aid intensity may be increased by 20 percentage
points
for aid awarded to small enterprises and by 10
percentage points for aid awarded to medium-sized enterprises.

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The eligible costs

in
5.
Article 18(6) and (7) and without taking account of operating
benefits and operating costs.

shall be calculated as

set out

Article 22

Environmental investment aid for high-efficiency
cogeneration

Environmental

1.
investment aid for high-efficiency cogen­
eration shall be compatible with the common market within
the meaning of Article 87(3) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of the Treaty,
provided that the conditions laid down in paragraphs 2, 3 and
4 of this Article are fulfilled.

The aid intensity shall not exceed 45 % of the eligible

2.
costs.

However, the aid intensity may be increased by 20 percentage
points
for aid awarded to small enterprises and by 10
percentage points for aid awarded to medium-sized enterprises.

The eligible costs shall be the extra investment costs
3.
necessary to realise a high efficiency cogeneration plant as
compared to the reference investment. The eligible costs shall
be calculated as set out in Article 18(6) and (7) and without
taking account of operating benefits and operating costs.

4.
A new cogeneration unit shall overall make primary
energy savings compared to separate production as provided
for by Directive 2004/8/EC and Decision 2007/74/EC. The
improvement of an existing cogeneration unit or conversion
of an existing power generation unit into a cogeneration unit
shall result in primary energy savings compared to the original
situation.

Article 23

The eligible costs shall be the extra costs borne by the
3.
beneficiary compared with a conventional power plant or with
a conventional heating system with the same capacity in terms
of the effective production of energy.

The eligible costs shall be calculated as set out in Article 18(6)
and (7) and without taking account of operating benefits and
operating costs.

Environmental

4.
biofuels
investments
sustainable biofuels.

investment aid for

shall be exempted only to the extent

are used exclusively for

the production of
the aided
the production of

Article 24

Aid for environmental studies

in Article 21 and investments for

Aid for studies directly linked to investments referred to in
1.
investments in energy saving measures under the
Article 18,
conditions set out
the
promotion of energy from renewable energy sources under
the conditions set out in Article 23 shall be compatible with
the common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that the conditions laid
down in paragraphs 2 and 3 of this Article are fulfilled.

The aid intensity shall not exceed 50 % of the eligible

2.
costs.

However, the aid intensity may be increased by 20 percentage
points for studies undertaken on behalf of small enterprises and
by 10 percentage points for studies undertaken on behalf of
medium-sized enterprises.

Environmental investment aid for the promotion of energy
from renewable energy sources

3.

The eligible costs shall be the costs of the study.

Environmental

1.
the promotion of
investment aid for
energy from renewable energy sources shall be compatible
with the common market within the meaning of Article 87(3)
of
from the notification
requirement of Article 88(3) of the Treaty, provided that the
conditions laid down in paragraphs 2, 3 and 4 of this Article
are fulfilled.

the Treaty and shall be exempt

The aid intensity shall not exceed 45 % of the eligible

2.
costs.

Article 25

Aid in the form of reductions in environmental taxes

taxes

fulfilling the

Environmental aid schemes in the form of reductions in
1.
environmental
conditions of Directive
2003/96/EC shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall
be exempt from the notification requirement of Article 88(3)
of the Treaty, provided the conditions laid down in paragraphs
2 and 3 of this Article are fulfilled.

However, the aid intensity may be increased by 20 percentage
points
for aid awarded to small enterprises and by 10
percentage points for aid awarded to medium-sized enterprises.

2.
The beneficiaries of the tax reduction shall pay at least the
Community minimum tax level set by Directive 2003/96/EC.

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Tax reductions shall be granted for maximum periods of
3.
ten years. After such 10 year period, Member States shall re-
evaluate the appropriateness of the aid measures concerned.

1.

‘equity’ means ownership interest in an undertaking, rep­
resented by the shares issued to investors;

SECTION 5

Aid for consultancy in favour of SMEs and SME participation
in fairs

Article 26

Aid for consultancy in favour of SMEs

the Treaty and shall be exempt

1.
Aid for consultancy in favour of SMEs shall be compatible
with the common market within the meaning of Article 87(3)
of
from the notification
requirement of Article 88(3) of the Treaty, provided that the
conditions laid down in paragraphs 2 and 3 of this Article are
fulfilled.

The aid intensity shall not exceed 50 % of the eligible

2.
costs.

The eligible costs shall be the consultancy costs of services

3.
provided by outside consultants.

The services concerned shall not be a continuous or periodic
activity nor relate to the undertaking’s usual operating costs,
such as routine tax consultancy services, regular legal services
or advertising.

Article 27

Aid for SME participation in fairs

the Treaty and shall be exempt

1.
Aid to SMEs for participation in fairs shall be compatible
with the common market within the meaning of Article 87(3)
from the notification
of
requirement of Article 88(3) of
the Treaty provided the
conditions laid down in paragraphs 2 and 3 of this Article
are fulfilled.

2.

‘quasi-equity’ means financial instruments whose return for
the holder is predominantly based on the profits or losses of
the underlying target undertaking and which are unsecured
in the event of default;

3.

‘private equity’ means private — as opposed to public —
equity or quasi-equity investment in undertakings not listed
on a stock-market, including venture capital;

4.

‘seed capital’ means financing provided to study, assess and
develop an initial concept, preceding the start-up phase;

5.

6.

7.

‘start-up capital’ means financing provided to undertakings,
which have not sold their product or service commercially
and are not yet generating a profit for product development
and initial marketing;

‘expansion capital’ means financing provided for the growth
and expansion of an undertaking, which may or may not
break even or trade profitably, for the purposes of increasing
production capacity, market or product development or the
provision of additional working capital;

‘exit strategy’ means a strategy for the liquidation of holdings
by a venture capital or private equity fund in accordance
with a plan to achieve maximum return,
including trade
sale, write-offs, repayment of preference shares/loans, sale
to another venture capitalist, sale to a financial
institution
and sale by public offering, including Initial Public Offerings;

8.

‘target undertaking’ means an undertaking in which an
investor or investment fund is considering investing.

Article 29

The aid intensity shall not exceed 50 % of the eligible

Aid in the form of risk capital

2.
costs.

3.
The eligible costs shall be the costs incurred for renting,
setting up and running the stand for the first participation of an
undertaking in any particular fair or exhibition.

SECTION 6

Aid in the form of risk capital

Article 28

Definitions

For the purposes of this Section, the following definitions shall
apply:

1.
Risk capital aid schemes in favour of SMEs shall be
compatible with the common market within the meaning of
Article 87(3) of the Treaty and shall be exempt from the noti­
fication requirement of Article 88(3) of the Treaty, provided the
conditions laid down in paragraphs 2 to 8 of this Article are
fulfilled.

The risk capital measure shall take the form of partici­
fund,

2.
pation into a profit driven private equity investment
managed on a commercial basis.

3.
The tranches of investment to be made by the investment
fund shall not exceed EUR 1,5 million per target undertaking
over any period of twelve months.

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For SMEs located in assisted areas, as well as for small
4.
enterprises located in non-assisted areas, the risk capital measure
shall be restricted to providing seed capital, start-up capital
and/or expansion capital. For medium-sized enterprises located
in non-assisted areas, the risk capital measure shall be restricted
to providing seed capital and/or
to the
exclusion of expansion capital.

start-up capital,

The investment fund shall provide at least 70 % of its total
5.
budget invested into target SMEs in the form of equity or quasi-
equity.

primary goal is to conduct fundamental research, industrial
research or experimental development and to disseminate
their its results by way of teaching, publication or tech­
nology transfer; all profits must be reinvested in these
their results or teaching;
activities,
undertakings that can exert influence upon such an organ­
for instance in their capacity as shareholders or
isation,
members of
the organisation, shall enjoy no preferential
access to the research capacities of such an organisation or
to the research results generated by it;

the dissemination of

At least 50 % of the funding of the investment funds shall
6.
be provided by private investors.
investment
funds targeting exclusively SMEs located in assisted areas, at
least 30 % of the funding shall be provided by private investors.

In the case of

2.

‘fundamental
research’ means experimental or theoretical
work undertaken primarily to acquire new knowledge of
the underlying foundations of phenomena and observable
facts, without any direct practical application or use in view;

To ensure that the risk capital measure is profit-driven, the

7.
following conditions shall be fulfilled:

(a) a business plan shall exist for each investment, containing
details of product, sales and profitability development and
establishing the ex ante viability of the project; and

(b) a clear and realistic exit

strategy shall exist

for each

investment.

To ensure that the investment

8.
commercial basis, the following conditions shall be fulfilled:

fund is managed on a

3.

4.

(a)

there shall be an agreement between a professional fund
manager and participants in the fund, providing that the
manager’s
linked to performance and
setting out
the fund and proposed
timing of investments; and

the objectives of

remuneration is

(b) private investors shall be represented in decision-making,
such as through an investors’ or advisory committee; and

(c) best practices and regulatory supervision shall apply to the

management of funds.

SECTION 7

Aid for research and development and innovation

Article 30

Definitions

For the purposes of this Section, the following definitions shall
apply:

‘industrial research’ means the planned research or critical
the acquisition of new knowledge
investigation aimed at
and skills
for developing new products, processes or
services or for bringing about a significant improvement in
existing products, processes or services.
It comprises the
creation of components parts to complex systems, which
is necessary for the industrial research, notably for generic
technology validation, to the exclusion of prototypes;

‘experimental development’ means the acquiring, combining,
shaping and using existing scientific, technological, business
and other relevant knowledge and skills for the purpose of
producing plans and arrangements or designs for new,
altered or improved products, processes or services. These
may also include, for instance, other activities aiming at the
conceptual definition, planning and documentation of new
activities may
products, processes or
comprise producing drafts, drawings, plans and other docu­
mentation, provided that
intended for
commercial use;

services. Those

are not

they

The development of commercially usable prototypes and
pilot projects is also included where the prototype is neces­
sarily the final commercial product and where it
is too
expensive to produce for it to be used only for demon­
stration and validation purposes.
In case of a subsequent
commercial use of demonstration or pilot projects, any
revenue generated from such use must be deducted from
the eligible costs.

1.

‘research organisation’ means an entity, such as a university
or research institute, irrespective of its legal status (organised
under public or private law) or way of financing, whose

The
experimental production and testing of products,
processes and services shall also be eligible, provided that
these cannot be used or transformed to be used in industrial
applications or commercially.

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include routine or
Experimental development
periodic changes made to products, production lines, manu­
facturing processes, existing services and other operations in
progress, even if such changes may represent improvements;

shall not

5.

‘highly qualified personnel’ means researchers, engineers,
designers and marketing managers with tertiary education
degree
relevant professional
experience; doctoral training may count as relevant profes­
sional experience;

least 5 years of

and at

6.

‘secondment’ means temporary employment of personnel by
a beneficiary during a period of
time, after which the
personnel has the right to return to its previous employer.

Article 31

Aid for research and development projects

Aid for

research and development projects

1.
shall be
compatible with the common market within the meaning of
Article 87(3) of the Treaty and shall be exempt from the noti­
fication requirement of Article 88(3) of the Treaty provided that
the conditions laid down in paragraphs 2 to 5 of this Article are
fulfilled.

The aided part of the research and development project
the following

2.
shall completely fall within one or more of
research categories:

(a)

fundamental research;

(b) industrial research;

(c) experimental development.

When a project encompasses different tasks, each task shall be
qualified as falling under one of the categories listed in the first
subparagraph or as not falling under any of those categories.

3.

The aid intensity shall not exceed:

(a) 100 % of the eligible costs for fundamental research;

(b) 50 % of the eligible costs for industrial research;

(c) 25 % of the eligible costs for experimental development.

the

In the case of aid for a research and development project being
carried out in collaboration between research organisations and
combined
undertakings,
from direct
deriving
government support
for a specific project and, where they
constitute aid, contributions from research organisations to
that project may not exceed the applicable aid intensities for
each beneficiary undertaking.

aid

The aid intensities set for industrial research and experi­
in paragraph 3 may be increased as

4.
mental development
follows:

(a) where the aid is granted to SMEs, the aid intensity may be
increased by 10 percentage points for medium-sized enter­
prises and by 20 percentage points for small enterprises;
and

(b) a bonus of 15 percentage points may be added, up to a
maximum aid intensity of 80 % of the eligible costs, if:

(i) the project involves effective collaboration between at
least two undertakings which are independent of each
other and the following conditions are fulfilled:

— no single undertaking bears more than 70 % of the

eligible costs of the collaboration project,

— the project involves collaboration with at least one
two different

in at

least

SME or is carried out
Member States, or

(ii) the project involves effective collaboration between an
undertaking and a research organisation and the
following conditions are fulfilled:

— the research organisation bears at least 10 % of the

eligible project costs, and

— the research organisation has the right to publish
the results of the research projects insofar as they
stem from research carried out by that organisation,
or

conferences or

(iii) in the case of industrial research, the results of the
project are widely disseminated through technical and
through publication in
scientific
scientific or technical journals or in open access repo­
sitories (databases where raw research data can be
accessed by anyone), or through free or open source
software.

The aid intensity shall be established for each beneficiary of aid,
including in a collaboration project, as provided in paragraph
4(b)(i).

For the purposes of point (b)(i) and (ii) of the first subparagraph,
subcontracting shall not be considered to be effective colla­
boration.

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5.

The eligible costs shall be the following:

(a) personnel

costs

other
supporting staff to the extent employed on the research
project);

(researchers,

technicians

and

(b) costs of instruments and equipment to the extent and for
the period used for the research project; if such instruments
and equipment are not used for their full
life for the
research project, only the depreciation costs corresponding
to the life of the research project, as calculated on the basis
of good accounting practice, shall be considered eligible;

(c) costs for buildings and land, to the extent and for the
duration used for
the research project; with regard to
buildings, only the depreciation costs corresponding to the
life of the research project, as calculated on the basis of
good accounting practice shall be considered eligible; for
land, costs of commercial
transfer or actually incurred
capital costs shall be eligible;

(d) cost of contractual

research,

technical knowledge and
patents bought or licensed from outside sources at market
prices, where the transaction has been carried out at arm’s
length and there is no element of collusion involved, as well
as costs of consultancy and equivalent services used exclu­
sively for the research activity;

(e) additional overheads incurred directly as a result of

the

research project;

(f) other operating costs, including costs of materials, supplies
and similar products incurred directly as a result of the
research activity.

All eligible costs shall be allocated to a specific category of

6.
research and development.

Article 32

Aid for technical feasibility studies

Aid for

technical

studies preparatory

1.
to
feasibility
industrial research or experimental development activities shall
be compatible with the common market within the meaning of
Article 87(3) of the Treaty and shall be exempt from the noti­
fication requirement of Article 88(3) of the Treaty, provided
that the conditions laid down in paragraphs 2 and 3 of this
Article are fulfilled.

2.

The aid intensity shall not exceed:

(a)

for SMEs, 75 % of the eligible costs for studies preparatory
to industrial research activities and 50 % of the eligible costs
for
to experimental development
activities;

studies preparatory

(b) for large enterprises, 65 % of the eligible costs for studies
preparatory to industrial research activities and 40 % of the
eligible costs for studies preparatory to experimental deve­
lopment activities.

3.

The eligible costs shall be the costs of the study.

Article 33

Aid for industrial property rights costs for SMEs

1.
Aid to SMEs for the costs associated with obtaining and
validating patents and other industrial property rights shall be
compatible with the common market within the meaning of
Article 87(3) of the Treaty and shall be exempt from the noti­
fication requirement of Article 88(3) of the Treaty, provided the
conditions laid down in paragraphs 2 and 3 of this Article are
fulfilled.

2.
The aid intensity shall not exceed the intensity for research
and development project aid laid down in Article 31(3) and (4),
in respect of
led to the
industrial property rights concerned.

the research activities which first

3.

The eligible costs shall be the following:

(a) all costs preceding the grant of the right in the first juris­
including costs relating to the preparation, filing
diction,
and prosecution of
the application as well as costs
incurred in renewing the application before the right has
been granted;

(b) translation and other costs incurred in order to obtain the
juris­

in other legal

the right

granting or validation of
dictions;

(c) costs incurred in defending the validity of the right during
the application and possible
the official prosecution of
opposition proceedings, even if such costs occur after the
right is granted.

Article 34

Aid for research and development in the agricultural and
fisheries sectors

Aid for research and development concerning products
1.
listed in Annex I to the Treaty shall be compatible with the
common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement
of Article 88(3) of the Treaty, provided that the conditions laid
down in paragraphs 2 to 7 of this Article are fulfilled.

The aid shall be of

2.
particular sector or sub-sector concerned.

interest

to all operators in the

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Information that research will be carried out, and with
3.
which goal, shall be published on the internet, prior to the
commencement of
the research. An approximate date of
expected results and their place of publication on the internet,
as well as a mention that the result will be available at no cost,
must be included.

The results of the research shall be made available on internet,
for a period of at least 5 years. They shall be published no later
than any information which may be given to members of any
particular organisation.

Aid shall be granted directly to the research organisation
4.
and must not involve the direct granting of non-research related
aid to a company producing, processing or marketing agri­
cultural products, nor provide price support to producers of
such products.

Article 87(3)(a) of
regions
Article 87(3)(c) of the Treaty.

eligible

for

the Treaty, and EUR 1,25 million in
in

derogation

provided

the

for

5.
The beneficiary may receive the aid only once during the
period in which it qualifies as a young innovative enterprise.

Article 36

Aid for innovation advisory services and for innovation
support services

Aid for innovation advisory services and for innovation
1.
support services shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty, provided that the conditions laid down in para­
graphs 2 to 6 of this Article are fulfilled.

5.
costs.

The aid intensity shall not exceed 100 % of the eligible

2.

The beneficiary shall be an SME.

6.

The eligible costs shall be those provided in Article 31(5).

The aid amount shall not exceed a maximum of EUR

3.
200 000 per beneficiary within any three year period.

Aid for research and development concerning products
7.
listed in Annex I to the Treaty and not fulfilling the conditions
laid down in this Article shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of the Treaty, provided the conditions laid down
in Articles 30, 31 and 32 of this Regulation are fulfilled.

exempt

Article 35

Aid to young innovative enterprises

the Treaty and shall be exempt

1.
Aid to young innovative enterprises shall be compatible
with the common market within the meaning of Article 87(3)
from the notification
of
requirement of Article 88(3) of the Treaty, provided that the
conditions laid down in paragraphs 2 to 5 of this Article are
fulfilled.

2.
The beneficiary shall be a small enterprise that has been in
existence for less than 6 years at the time when the aid is
granted.

3.
The research and development costs of the beneficiary
shall represent at least 15 % of its total operating costs in at
least one of the three years preceding the granting of the aid or,
in the case of a start-up enterprise without any financial history,
in the audit of
fiscal period, as certified by an
external auditor.

its current

4.

The aid amount shall not exceed EUR 1 million.

However, the aid amount shall not exceed EUR 1,5 million in
in
regions

derogation

provided

eligible

the

for

for

The service provider shall benefit

4.
from a national or
European certification. If the service provider does not benefit
from a national or European certification, the aid intensity shall
not exceed 75 % of the eligible costs.

5.
The beneficiary must use the aid to buy the services at
market price, or if the service provider is a non-for-profit entity,
at a price which reflects its full costs plus a reasonable margin.

6.

The eligible costs shall be the following:

(a) as regards innovation advisory services, the costs relating to:
technological
tech­
management
consulting,
nology transfer services,
training, consultancy for acqui­
sition, protection and trade in Intellectual Property Rights
and for licensing agreements, consultancy on the use of
standards;

assistance,

(b) as regards innovation support services, the costs relating to:
office space, data banks, technical libraries, market research,
use of laboratory, quality labelling, testing and certification.

Article 37

Aid for the loan of highly qualified personnel

1.
Aid for the loan of highly qualified personnel seconded
from a research organisation or a large enterprise to an SME
shall be compatible with the common market within the
meaning of Article 87(3) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of
the
Treaty, provided that the conditions laid down in paragraphs
2 to 5 of this Article are fulfilled.

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The seconded personnel must not be replacing other
2.
personnel, but must be employed in a newly created function
within the beneficiary undertaking and must have been
employed for at least two years in the research organisation
or the large enterprise, which is sending the personnel on
secondment.

Article 39

Training aid

1.
Training aid shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty, provided that the conditions laid down in para­
graphs 2, 3 and 4 of this Article are fulfilled.

The seconded personnel must work on research and develop­
ment and innovation activities within the SME receiving the aid.

2.

The aid intensity shall not exceed:

The aid intensity shall not exceed 50 % of the eligible
for a maximum of 3 years per undertaking and per

3.
costs,
person borrowed.

(a) 25 % of the eligible costs for specific training; and

(b) 60 % of the eligible costs for general training.

eligible
and

for
costs
The
4.
borrowing
personnel,
including the costs of using a recruitment agency and of
paying a mobility allowance for the seconded personnel.

shall be all personnel

costs
employing

qualified

highly

This Article shall not apply to consultancy costs as

5.
referred to in Article 26.

SECTION 8

Training aid

Article 38

Definitions

However, the aid intensity may be increased, up to a maximum
aid intensity of 80 % of the eligible costs, as follows:

(a) by 10 percentage points if the training is given to disabled

or disadvantaged workers;

(b) by 10 percentage points if the aid is awarded to medium-
sized enterprises and by 20 percentage points if the aid is
awarded to small enterprises.

Where the aid is granted in the maritime transport sector,
it
may reach an intensity of 100 % of the eligible costs, whether
training,
the training project concerns
provided that the following conditions are met:

specific or general

For the purposes of this Section, the following definitions shall
apply:

(a)

the trainee shall not be an active member of the crew but
shall be supernumerary on board; and

1.

2.

‘specific training’ means training involving tuition directly
and principally applicable to the employee’s present or
future position in the undertaking and providing qualifi­
cations which are not or only to a limited extent transferable
to other undertakings or fields of work;

‘general training’ means training involving tuition which is
not applicable only or principally to the employee’s present
or future position in the undertaking, but which provides
qualifications that are largely transferable to other under­
takings or
fields of work. Training shall be considered
‘general’ if, for example:

(b) the training shall be carried out on board ships entered on

Community registers.

3.
In cases where the aid project involves both specific and
general training components which cannot be separated for the
calculation of the aid intensity, and in cases where the specific
or general character of the training aid project cannot be estab­
lished, the aid intensities applicable to specific training shall
apply.

4.

The eligible costs of a training aid project shall be:

(a)

trainers’ personnel costs;

(a)

it is jointly organised by different independent under­
takings or where employees of different undertakings
may avail themselves of the training;

(b) trainers’ and trainees’ travel expenses, including accommo­

dation;

(b) it is recognised, certified or validated by public authori­
ties or bodies or by other bodies or institutions on which
a Member State or the Community has conferred the
necessary powers.

(c) other current expenses

such as materials and supplies

directly related to the project;

(d) depreciation of tools and equipment, to the extent that they

are used exclusively for the training project;

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(e) cost of guidance and counselling services with regard to the

training project;

(f)

trainees’ personnel costs and general indirect costs (admin­
istrative costs, rent, overheads) up to the amount of the
total of the other eligible costs referred to in points (a) to
(e). As regards the trainees’ personnel costs, only the hours
during which the trainees actually participate in the training,
after deduction of any productive hours, may be taken into
account.

SECTION 9

Aid for disadvantaged and disabled workers

Article 40

Aid for the recruitment of disadvantaged workers in the
form of wage subsidies

1.
Aid schemes for the recruitment of disadvantaged workers
in the form of wage subsidies shall be compatible with the
common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement
of Article 88(3) of the Treaty, provided the conditions laid
down in paragraphs 2 to 5 of this Article are fulfilled.

The aid intensity shall not exceed 50 % of the eligible

2.
costs.

Eligible costs shall be the wage costs over a maximum

3.
period of 12 months following recruitment.

However, where the worker concerned is a severely disad­
vantaged worker, eligible costs shall be the wage costs over a
maximum period of 24 months following recruitment.

4. Where the recruitment does not represent a net increase,
compared with the average over the previous twelve months, in
the number of employees in the undertaking concerned, the
post or posts shall have fallen vacant
following voluntary
departure, disability, retirement on grounds of age, voluntary
reduction of working time or lawful dismissal for misconduct
and not as a result of redundancy.

Except in the case of lawful dismissal for misconduct, the
continuous
be
for a minimum period consistent with the
legislation concerned or any collective agreements

5.
disadvantaged worker
employment
national
governing employment contracts.

entitled

shall

to

Article 41

Aid for the employment of disabled workers in the form
of wage subsidies

Aid for the employment of disabled workers in the form
1.
of wage subsidies shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty, provided the conditions laid down in paragraphs 2
to 5 of this Article are fulfilled.

The aid intensity shall not exceed 75 % of the eligible

2.
costs.

Eligible costs shall be the wage costs over any given

3.
period during which the disabled worker is being employed.

4. Where the recruitment does not represent a net increase,
compared with the average over the previous twelve months, in
the number of employees in the undertaking concerned, the
post or posts shall have fallen vacant
following voluntary
departure, disability, retirement on grounds of age, voluntary
reduction of working time or lawful dismissal for misconduct
and not as a result of redundancy.

Except in the case of lawful dismissal for misconduct the
5.
for a
workers shall be entitled to continuous employment
minimum period consistent with the national
legislation
concerned or any collective agreements governing employment
contracts.

If the period of employment is shorter than 12 months, the aid
shall be reduced pro rata accordingly.

Article 42

Aid for compensating the additional costs of employing
disabled workers

1.
Aid for compensating the additional costs of employing
disabled workers shall be compatible with the common market
within the meaning of Article 87(3) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty, provided the conditions laid down in paragraphs 2
and 3 of this Article are fulfilled.

The aid intensity shall not exceed 100 % of the eligible

2.
costs.

If the period of employment is shorter than 12 months or, as
the case may be 24 months, the aid shall be reduced pro rata
accordingly.

3.
Eligible costs shall be costs other than wage costs covered
by Article 41, which are additional to those which the under­
taking would have incurred if employing workers who are not
disabled, over the period during which the worker concerned is
being employed.

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The eligible costs shall be the following:

(a) costs of adapting premises;

(b) costs of employing staff

for

time spent solely on the

assistance of the disabled workers;

(c) costs of adapting or acquiring equipment, or acquiring and
validating software for use by disabled workers,
including
adapted or assistive technology facilities, which are addi­
tional to those which the beneficiary would have incurred
if employing workers who are not disabled;

(d) where the beneficiary provides sheltered employment, the
installing or expanding the estab­
costs of constructing,
lishment concerned, and any costs of administration and
transport which result directly from the employment of
disabled workers.

CHAPTER III

FINAL PROVISIONS

Article 43

Repeal

Regulation (EC) No 1628/2006 shall be repealed.

Article 44

Transitional provisions

1.
This Regulation shall apply to individual aid granted
before its entry into force, if the aid fulfils all the conditions
laid down in this Regulation, with the exception of Article 9.

2.
Any aid granted before 31 December 2008, which does
not fulfil the conditions laid down in this Regulation but fulfils
the conditions laid down in Regulation (EC) No 68/2001, Regu­
lation (EC) No 70/2001, Regulation (EC) No 2204/2002 or
Regulation (EC) No 1628/2006 shall be compatible with the
common market and exempt from the notification requirement
of Article 88(3) of the Treaty.

Any other aid granted before the entry into force of this Regu­
lation, which fulfils neither the conditions laid down in this
Regulation nor the conditions laid down in one of the Regu­
lations referred to in the first subparagraph, shall be assessed by
the Commission in accordance with the relevant frameworks,
guidelines, communications and notices.

At the end of the period of validity of this Regulation, any
3.
aid schemes exempted under
remain
exempted during an adjustment period of six months, with
the exception of
regional aid schemes. The exemption of
regional aid schemes shall expire at the date of expiry of the
approved regional aid maps.

this Regulation shall

Article 45

Entry into force and applicability

Any references to the repealed Regulation and to Regulation
(EC) No 68/2001, Regulation (EC) No 70/2001 and Regulation
(EC) No 2204/2002 shall be construed as references to this
Regulation.

This Regulation shall enter into force on the twentieth day
following that of its publication in the Official
Journal of the
European Union.

It shall apply until 31 December 2013.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 6 August 2008.

For the Commission

Neelie KROES
Member of the Commission

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ANNEX I

Definition of SME

Article 1

Enterprise

An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes,
in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or
associations regularly engaged in an economic activity.

Article 2

Staff headcount and financial thresholds determining enterprise categories

The category of micro, small and medium-sized enterprises (‘SMEs’) is made up of enterprises which employ fewer
1.
than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet
total not exceeding EUR 43 million.

2. Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and
whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million.

3. Within the SME category, a micro-enterprise is defined as an enterprise which employs fewer than 10 persons and
whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.

Article 3

Types of enterprise taken into consideration in calculating staff numbers and financial amounts

An ‘autonomous enterprise’ is any enterprise which is not classified as a partner enterprise within the meaning of

1.
paragraph 2 or as a linked enterprise within the meaning of paragraph 3.

‘Partner enterprises’ are all enterprises which are not classified as linked enterprises within the meaning of paragraph
2.
3 and between which there is the following relationship: an enterprise (upstream enterprise) holds, either solely or jointly
with one or more linked enterprises within the meaning of paragraph 3, 25 % or more of the capital or voting rights of
another enterprise (downstream enterprise).

However, an enterprise may be ranked as autonomous, and thus as not having any partner enterprises, even if this 25 %
threshold is reached or exceeded by the following investors, provided that those investors are not linked, within the
meaning of paragraph 3, either individually or jointly to the enterprise in question:

(a) public investment corporations, venture capital companies, individuals or groups of individuals with a regular venture
in unquoted businesses (business angels), provided the total

capital
investment of those business angels in the same enterprise is less than EUR 1 250 000;

investment activity who invest equity capital

(b) universities or non-profit research centres;

(c)

institutional investors, including regional development funds;

(d) autonomous local authorities with an annual budget of less than EUR 10 million and less than 5 000 inhabitants.

3.

‘Linked enterprises’ are enterprises which have any of the following relationships with each other:

(a) an enterprise has a majority of the shareholders’ or members’ voting rights in another enterprise;

(b) an enterprise has the right to appoint or remove a majority of the members of the administrative, management or

supervisory body of another enterprise;

(c) an enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered

into with that enterprise or to a provision in its memorandum or articles of association;

(d) an enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement
with other shareholders in or members of that enterprise, a majority of shareholders’ or members’ voting rights in
that enterprise.

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There is a presumption that no dominant influence exists if the investors listed in the second subparagraph of para-
graph 2 are not involving themselves directly or indirectly in the management of the enterprise in question, without
prejudice to their rights as shareholders.

Enterprises having any of the relationships described in the first subparagraph through one or more other enterprises, or
any one of the investors mentioned in paragraph 2, are also considered to be linked.

Enterprises which have one or other of such relationships through a natural person or group of natural persons acting
jointly are also considered linked enterprises if they engage in their activity or in part of their activity in the same relevant
market or in adjacent markets.

An ‘adjacent market’ is considered to be the market for a product or service situated directly upstream or downstream of
the relevant market.

4.
Except in the cases set out in paragraph 2, second subparagraph, an enterprise cannot be considered an SME if 25 %
or more of the capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public
bodies.

5.
Enterprises may make a declaration of status as an autonomous enterprise, partner enterprise or linked enterprise,
including the data regarding the thresholds set out in Article 2. The declaration may be made even if the capital is spread
in such a way that it is not possible to determine exactly by whom it is held, in which case the enterprise may declare in
good faith that it can legitimately presume that it is not owned as to 25 % or more by one enterprise or jointly by
enterprises linked to one another. Such declarations are made without prejudice to the checks and investigations provided
for by national or Community rules.

Article 4

Data used for the staff headcount and the financial amounts and reference period

1.
The data to apply to the headcount of staff and the financial amounts are those relating to the latest approved
accounting period and calculated on an annual basis. They are taken into account from the date of closure of the
accounts. The amount selected for the turnover is calculated excluding value added tax (VAT) and other indirect taxes.

2. Where, at the date of closure of the accounts, an enterprise finds that, on an annual basis, it has exceeded or fallen
below the headcount or financial thresholds stated in Article 2, this will not result in the loss or acquisition of the status
of medium-sized, small or micro-enterprise unless those thresholds are exceeded over two consecutive accounting periods.

In the case of newly-established enterprises whose accounts have not yet been approved, the data to apply is to be

3.
derived from a bona fide estimate made in the course of the financial year.

Article 5

Staff headcount

The headcount corresponds to the number of annual work units (AWU), i.e. the number of persons who worked full-time
within the enterprise in question or on its behalf during the entire reference year under consideration. The work of
persons who have not worked the full year, the work of those who have worked part-time, regardless of duration, and the
work of seasonal workers are counted as fractions of AWU. The staff consists of:

(a) employees;

(b) persons working for the enterprise being subordinated to it and deemed to be employees under national law;

(c) owner-managers;

(d) partners engaging in a regular activity in the enterprise and benefiting from financial advantages from the enterprise.

Apprentices or students engaged in vocational training with an apprenticeship or vocational training contract are not
included as staff. The duration of maternity or parental leaves is not counted.

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Article 6

Establishing the data of an enterprise

In the case of an autonomous enterprise, the data, including the number of staff, are determined exclusively on the

1.
basis of the accounts of that enterprise.

2.
The data, including the headcount, of an enterprise having partner enterprises or linked enterprises are determined
on the basis of the accounts and other data of the enterprise or, where they exist, the consolidated accounts of the
enterprise, or the consolidated accounts in which the enterprise is included through consolidation.

To the data referred to in the first subparagraph are added the data of any partner enterprise of the enterprise in question
situated immediately upstream or downstream from it. Aggregation is proportional to the percentage interest in the
capital or voting rights (whichever is greater). In the case of cross-holdings, the greater percentage applies.

To the data referred to in the first and second subparagraph are added 100 % of the data of any enterprise, which is
linked directly or indirectly to the enterprise in question, where the data were not already included through consolidation
in the accounts.

3.
For the application of paragraph 2, the data of the partner enterprises of the enterprise in question are derived from
their accounts and their other data, consolidated if they exist. To these are added 100 % of the data of enterprises which
are linked to these partner enterprises, unless their accounts data are already included through consolidation.

For the application of the same paragraph 2, the data of the enterprises which are linked to the enterprise in question are
to be derived from their accounts and their other data, consolidated if they exist. To these are added, pro rata, the data of
any possible partner enterprise of that linked enterprise, situated immediately upstream or downstream from it, unless it
has already been included in the consolidated accounts with a percentage at least proportional to the percentage identified
under the second subparagraph of paragraph 2.

4. Where in the consolidated accounts no staff data appear for a given enterprise, staff figures are calculated by
aggregating proportionally the data from its partner enterprises and by adding the data from the enterprises to which the
enterprise in question is linked.

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ANNEX II

Form for the provision of summary information for research and development aid under the extended reporting
obligation laid down in Article 9(4)

1. Aid in favour of (name of the undertaking(s) receiving the aid, SME or not):

2. Aid scheme reference (Commission reference of the existing scheme or schemes under which the aid is awarded):

3. Public entity/entities providing the assistance (name and co-ordinates of the granting authority or authorities):

4. Member State where the aided project or measure is carried out:

5. Type of project or measure:

6. Short description of project or measure:

7. Where applicable, eligible costs (in EUR):

8. Discounted aid amount (gross) in EUR:

9. Aid intensity (% in gross grant equivalent):

10. Conditions attached to the payment of the proposed aid (if any):

11. Planned start and end date of the project or measure:

12. Date of award of the aid:

Form for the provision of summary information for aid for large investment projects under the extended
reporting obligation laid down in Article 9(4)

1. Aid in favour of (name of the undertaking(s) receiving the aid).

2. Aid scheme reference (Commission reference of the existing scheme or schemes under which the aid is awarded).

3. Public entity/entities providing the assistance (name and co-ordinates of the granting authority or authorities).

4. Member State where the investment takes place.

5. Region (NUTS 3 level) where the investment takes place.

6. Municipality (previously NUTS 5 level, now LAU 2) where the investment takes place.

7. Type of project (setting-up of a new establishment, extension of existing establishment, diversification of the output
of an establishment into new additional products or a fundamental change in the overall production process of an
existing establishment).

8. Products manufactured or services provided on the basis of the investment project (with PRODCOM/NACE nomen­

clature or CPA nomenclature for projects in the service sectors).

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9. Short description of investment project.

10. Discounted eligible cost of investment project (in EUR).

11. Discounted aid amount (gross) in EUR.

12. Aid intensity (% in GGE).

13. Conditions attached to the payment of the proposed assistance (if any).

14. Planned start and end date of the project.

15. Date of award of the aid.

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ANNEX III

Form for the provision of summary information under the reporting obligation laid down in Article 9(1)

Please fill in the information required below:

PART I

(to be completed by the Commission)

Aid reference

Member State

Member State reference
number

Region

Name of the Region
(NUTS) (1)

Regional aid status (2)

Granting authority

Name

Address

Webpage

Title of the aid measure

National legal basis
(Reference to the relevant
national official publication)

Web link to the full text of the
aid measure

Type of measure

Scheme

Ad hoc aid

Name of the Beneficiary

Amendment of an existing
aid measure

Commission aid number

Prolongation

Modification

Duration (3)

Scheme

dd/mm/yy to dd/mm/yy

Date of granting (4)

Ad hoc aid

dd/mm/yy

Economic sector(s)
concerned

All economic sectors
eligible to receive aid

Limited to specific sectors
— Please specify in
accordance with NACE
Rev. 2. (5)

Type of beneficiary

SME

Large enterprises

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Budget

Annual overall amount of
the budget planned under
the scheme (6)

Overall amount of the ad
hoc aid awarded to the
undertaking (7)

National currency … (in millions)

National currency … (in millions)

For guarantees (8)

National currency … (in millions)

Aid instrument (Art. 5)

Grant

Interest rate subsidy

Loan

Guarantee/Reference to the Commission decision (9)

Fiscal measure

Risk capital

Repayable advances

Other (please specify)

If co-financed by
Community funds

Reference(s):

Amount of Community
funding

National currency … (in
millions)

(1) NUTS — Nomenclature of Territorial Units for Statistics.
(2) Article 87(3)(a) of the Treaty, Article 87(3)(c) of the Treaty, mixed areas, areas not eligible for regional aid.
(3) Period during which the granting authority can commit itself to grant the aid.
(4) Aid is to be considered to be granted at the moment the legal right to receive the aid is conferred on the beneficiary under the

applicable national legal regime.

(5) NACE Rev.2 — Statistical classification of Economic Activities in the European Community.
(6) In case of an aid scheme: Indicate the annual overall amount of the budget planned under the scheme or the estimated tax loss per year

for all aid instruments contained in the scheme.

(7) In case of an ad hoc aid award: Indicate the overall aid amount/tax loss.
(8) For guarantees, indicate the (maximum) amount of loans guaranteed.
(9) Where appropriate, reference to the Commission decision approving the methodology to calculate the gross grant equivalent, in line

with Article 5(1)(c) of the Regulation.

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Please indicate under which provision of the GBER the aid measure is implemented.

PART II

General Objectives (list)

Objectives (list)

Maximum aid intensity in %
or Maximum aid amount in
national currency

SME — bonuses in %

Regional investment and
employment aid (1)
(Art. 13)

Scheme

Ad hoc aid (Art. 13(1))

Aid for newly created
small enterprises
(Art. 14)

SME investment and
employment aid (Art. 15)

Aid for small enterprises
newly created by female
entrepreneurs (Art. 16)

Aid for Environmental
protection (Art. 17–25)

Investment aid enabling undertakings
to go beyond Community standards
for environmental protection or
increase the level of environmental
protection in the absence of
Community standards (Art. 18)

Please provide a specific reference to
the relevant standard

Aid for the acquisition of new
transport vehicles which go beyond
Community standards or which
increase the level of environmental
protection in the absence of
Community standards (Art. 19)

Aid for early adaptation to future
Community standards for SMEs
(Art. 20)

Environmental investment aid for
energy saving measures (Art. 21)

Environmental investment aid for
high efficiency cogeneration (Art. 22)

Environmental investment aid for the
promotion of energy from renewable
energy sources
(Art. 23)

Aid for environmental studies
(Art. 24)

… %

… %

… %

… %

… %

… %

… %

… %

… %

… %

… %

… %

Aid in the form of reductions in en­
vironmental taxes (Art. 25)

… national currency

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General Objectives (list)

Objectives (list)

Maximum aid intensity in %
or Maximum aid amount in
national currency

SME — bonuses in %

Aid for consultancy in
favour of SMEs and SME
participation in fairs
(Art. 26–27)

Aid for consultancy in favour of SMEs
(Art. 26)

… %

Aid for SME participation in fairs
(Art. 27)

… %

Aid in the form of risk
capital
(Art. 28–29)

Aid for research, deve­
lopment and innovation
(Art. 30–37)

… national currency

Aid for
research
and deve­
lopment
projects
(Art. 31)

Fundamental research
(Art. 31(2)(a))

Industrial research
(Art. 31(2)(b))

Experimental develop­
ment (Art. 31(2)(c))

Aid for technical feasibility studies
(Art. 32)

Aid for industrial property rights
costs for SMEs (Art. 33)

Aid for research and development in
the agricultural and fisheries sectors
(Art. 34)

… %

… %

… %

… %

… %

… %

Aid to young innovative enterprises
(Art. 35)

… national currency

Aid for innovation advisory services
and for innovation support services
(Art. 36)

… national currency

Aid for the loan of highly qualified
personnel (Art. 37)

… national currency

Training aid (Art. 38–39)

Specific training (Art. 38(1))

… %

General training (Art. 38(2))

… %

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General Objectives (list)

Objectives (list)

Maximum aid intensity in %
or Maximum aid amount in
national currency

SME — bonuses in %

Aid for disadvantaged
and disabled workers
(Art. 40–42)

Aid for the recruitment of disadvan­
taged workers in the form of wage
subsidies
(Art. 40)

Aid for the employment of disabled
workers in the form of wage subsidies
(Art. 41)

Aid for compensating the additional
costs of employing disabled workers
(Art. 42)

… %

… %

… %

(1) In the case of ad hoc regional aid supplementing aid awarded under aid scheme(s), please indicate both the aid intensity granted under

the scheme and the intensity of the ad hoc aid.