EU raises ceiling for state aid

The cap on “de minimis” subsidies is to be raised from €150,000 to €200,000 following a revised proposal adopted today by the European commission.

De minimis rules regulate how much money EU countries can give out to their industries without first having to seek the commission’s approval.

The new proposal also exempts guarantee schemes for loans up to €1.7m – a move the commission says will help cut red tape for SMEs.

"We have listened carefully to the member states' and stakeholders' views on our earlier drafts and we now propose creating a safe harbour tailor-made for guarantee schemes for small and medium-sized enterprises," said competition commissioner Neelie Kroes.

The member states and industry now have a chance to comment on the new proposal before it is definitively adopted by the commission later this year.

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