Block exemption regulations on aid for SMEs, for training and de minimis aid

In January 2001 the Commission published three new block exemption regulations covering aid to SMEs, aid for training and de minimis aid. The exemption is from the need to notify so long as all the requirements set out in the regulation are met. These links below to the block exemption regulations also include the definition of an SME, the templates for providing summary information and the templates for providing annual spend information.

Block Exemption: de minimis (128Kb)
Block Exemption: SMEs (158Kb)
Block Exemption: training (157Kb)
Block Exemption: employment (160Kb)

Guidance for aid administrators

Any queries on the Regulations should be directed in the first instance to:

State Aid Policy Unit
Kingsgate House
66-74 Victoria Street
London SW1E 6SW
sapu@dti.gsi.gov.uk

Should a proposal not fall within the terms of a block exemption regulation, it could either be amended to fit the regulation or it could be notified in the usual way (assuming it is an aid that can be approved).

Notification

The notification rules are explained in the State Aids Policy Unit's guidance booklet. All the State aid legislation and Commission guidelines, frameworks and communications are available on the Commission's website.

The Commission website includes:

• the full rules and legislation applicable to state aids
• a summary of the notification procedures (123Kb)

There are four key points to remember when considering State aids.

1. Build in "State aid implications" to your initial appraisal

   There are special rules which apply to certain sectors (eg coal and shipbuilding); size of firm (eg SMEs); location (regional aid), or; purpose (eg environmental improvement). It should be established early on how the rules apply to a proposed aid scheme or individual aid in order to avoid unwelcome surprises later.

2. Allow enough time for Commission clearance

   The Commission will take a minimum of two months from receipt of a complete notification to take a decision. Recently the average time take has been 4-5 months from the date of notification. The Commission can and does stop the clock (which is then reset to zero) if they need more information. The clock does not restart until the answers to the questions are received.

3. Be aware of the risks of implementing unapproved aid

   Aid is illegal unless and until the Commission has approved it. Companies placed in this situation risk having to repay the illegal aid plus interest from the date of the first payment, and also risk actions for damages from third parties.

4. Liaise with the State Aid Policy Unit

   It is the State aid administrator's responsibility to assess whether proposals include aid, and where they do to assess how the aid can be paid within the State aid rules. DTI's State Aid Policy Unit provides advice on the State aid rules and procedures for all Government departments, agencies, local and regional bodies and devolved institutions providing aid to industry. Notifications of aid should be routed through the DTI's State Aid Policy Unit (DEFRA and DTLR carry out the same function in respect of agricultural and transport aid respectively). This applies to the devolved institutions as well. The State Aid Policy Unit will then forward them to UKREP in Brussels who in turn ensure transmission to the Commission.

   the standard notification form under Article 88(3)
   Standard notification form for regional aid (70Kb)
   Standard notification form for training aid (when not a block exemption) (16Kb)