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As another milestone of its state aid modernisation (SAM) initiative, the European Commission has considerably extended the scope of exemptions from prior notification of state aid granted to companies. Under the revised General Block Exemption Regulation (GBER), Member States will be able to grant more aid measures and higher amounts without having to notify them to the Commission for prior authorisation, because they are less likely to lead to undue distortions of competition in the Single Market. This will significantly reduce the administrative burden for Member States and local authorities and increase legal certainty for aid beneficiaries. The Regulation will enter into force on 1 July 2014. See also MEMO/14/369.

Commission Vice-President, in charge of competition policy, Joaquín Almunia, said: "These new rules will cut red tape for Member States and encourage them to put in place smart aid measures which contribute to economic growth and do not harm fair competition. If Member States make full use of the possibilities for granting aid under the extended exemptions from notification, most aid measures could be immediately implemented, without prior approval from the Commission."

As a rule, except for aid of a very low amount, state aid measures granted by Member States to undertakings must be notified to the European Commission for prior approval. However, the General Block Exemption Regulation (GBER) exempts aid measures from prior notification if certain conditions are respected. The previous Regulation, adopted in 2008, covers approximately 60% of all aid measures and slightly more than 30% of the aid amounts granted each year in the EU. Based on 2012 data, the Commission estimates that about 3/4 of today's state aid measures and some 2/3 of aid amounts will be exempted under the revised GBER. Even more aid measures could be exempted if Member States make smart use of the possibilities offered by the Regulation, designing their aid schemes so that they meet the conditions required. Aid measures which are not covered by the GBER will continue to be assessed by the Commission under the relevant state aid guidelines.

In line with the objectives of State Aid Modernisation (SAM) (see IP/12/458), the new Regulation encourages "good aid" which stimulates economic growth, job creation and other objectives of common interest. It also reduces the administrative burden for Member State and allows the faster deployment of aid for companies. Finally, it enables the Commission to concentrate its scrutiny on the aid measures which are most likely to distort competition in the Single Market, while also conducting improved ex post monitoring of measures benefitting from the exemption.

The key improvements brought by the revised GBER are the following:

• Greater scope through increased thresholds: The exemption thresholds for many measures that were already covered by the existing GBER have been raised, allowing Member States to grant higher aid amounts without prior notification. For some categories of aid, the scope has also been increased through more flexible eligibility conditions, more favourable maximum aid intensities and higher aid amounts.

• Greater scope through additional categories of aid: The adoption of a revised Enabling Regulation (seeIP/13/728) allowed the Commission to exempt new categories, such as aid for local, broadband, research and energy infrastructures, innovation clusters, regional urban development funds, culture and heritage conservation, audio-visual works, sports and recreational infrastructures and aid to make good damage caused by certain natural disasters.

• Simplification: taking on board feedback from the public consultations and in accordance with the objectives of the SAM, the conditions that aid measures should meet to benefit from the exemption have been significantly clarified and simplified.