European Commission proposes more flexible State aid rules for regions and companies in difficulty
The European Commission wants to create more flexibility within the European State aid rules. To this end, it has launched two public consultations concerning the Guidelines on regional State aid and the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty.
The consultations include proposals for higher aid intensities in certain regions, broader opportunities for operating aid and revised rules for companies experiencing financial difficulties. The changes are not yet final. Companies, public authorities, organisations and EU citizens can provide feedback on these proposals.
What will change under the Guidelines on regional State aid?
The Guidelines on regional State aid set out the conditions under which Member States may provide State aid to promote economic development and employment in specific regions. Among other things, they provide the basis for regional aid maps. These maps determine the areas in which companies can receive regional investment aid and the maximum aid intensities that apply. The current regional aid maps remain valid until 31 December 2027. The European Commission is therefore developing the framework for new aid maps for the 2028–2034 period.
One of the proposed changes is to broaden the scope for regional operating aid. At present, this type of State aid is only available to a limited extent, including in very sparsely populated areas. The European Commission wants to extend these possibilities to other areas facing structural challenges. It also proposes increasing the maximum permitted aid intensity for certain regions.
What does this mean for you?
These changes could create new funding opportunities for your organisation. From 2028, public authorities may be able to provide regional State aid in more situations or under more favourable conditions. As a result, companies investing in designated assisted areas could have greater access to funding for future projects. You can respond to the European Commission’s consultation on regional State aid rules between 28 July and 30 September 2026.
More flexibility for rescuing and restructuring non-financial companies
The rules on State aid for non-financial companies in difficulty are also being revised. These guidelines determine the conditions under which Member States may support companies experiencing financial difficulties through rescue or restructuring aid. Such support is subject to strict conditions because it can distort competition within the European market. The European Commission proposes several changes:
- Extending the scope of the guidelines to include the steel sector;
- Introducing an exception for certain innovative start-ups when determining whether they qualify as an ‘undertaking in difficulty’;
- Revising the definition of an ‘undertaking in difficulty’ by changing how certain financial instruments are taken into account when assessing equity.
The proposed change to the definition of an ‘undertaking in difficulty’ could be particularly relevant. This classification not only applies to rescue and restructuring aid but can also affect eligibility for other forms of State aid. A company’s status as an undertaking in difficulty can therefore determine whether it is eligible to receive support. Stakeholders can respond to these proposals until 4 September 2026. The European Commission is expected to adopt the new guidelines by the end of 2026.
What could these changes mean for your organisation?
The proposals show that the European Commission wants to adapt its State aid rules to changes in the economy. The revisions could give public authorities greater scope to support regional development and assist companies experiencing financial difficulties. Companies could also benefit from broader opportunities to qualify for support. The precise implications will only become clear once the consultations have concluded and the final guidelines have been adopted.
Do you have investment plans for which regional aid could play a role, or would you like to know what these proposed changes could mean for your organisation? Our specialists closely monitor developments and can help you assess the potential implications. Would you like more information or to discuss your opportunities? Contact us at info@hezelburcht.com, call 088 495 20 00 or fill in our contact form to discuss your project.
