On 19 April 2021, the European Commission adopted the revised EU Guidelines on Regional State Aid. These guidelines aim to ensure a level playing field in the common market by allowing Member States to grant public aid to undertakings which support the development of disadvantaged regions.
Key changes and objectives of the guidelines
- Support for large enterprises: The new guidelines allow large companies to benefit from regional state aid. Large enterprises play a key role in regional development, as well as in the decarbonisation process. Their participation in investment projects can bring significant economic and environmental benefits to the regions.
- A Just Transformation: The guidelines also include areas eligible for a “just transition”. This is particularly relevant in the context of the Just Transition Fund (JTF) regulation, which aims to support the regions most affected by the transition to a low-carbon economy.
Involvement of BSP in the consultation process
The Business & Science Poland actively participated in the public consultation process on the draft of the new guidelines in autumn 2020. In its position, BSP stressed the need to support large enterprises and to include Polish areas of just transformation in the guidelines. The organization argued that large enterprises could make a significant contribution to regional development and the achievement of decarbonisation goals.
Actions and plans for the future
The guidelines will come into force in 2022 and the BSP will continue its dialogue with the EU institutions to monitor their implementation and ensure that Polish regions and businesses can fully benefit from the available forms of support. A key element of BSP's activities will also be to promote the effective use of Just Transition Funds to support sustainable and innovative development in Poland.
Summary
The revision of the EU guidelines on regional state aid is a step towards supporting the sustainable development and decarbonisation of European regions. With the involvement of organisations such as BSP, the new guidelines take into account the needs of large enterprises and regions eligible for a just transition, which can bring significant economic and environmental benefits for the entire European Union.