The European Commission Seeks Public Input On Its Review Of The State Aid General Block Exemption Regulation

The European Commission has initiated a review of the General Block Exemption Regulation, with a view to further simplifying and modernising State aid rules. The initiative is part of the broader EU strategy to enhance competitiveness and support the transition to a net-zero economy. A Call for Evidence and public consultation is now open, with responses due by 6 October 2025.

Background

Under Article 108(3) in the Treaty on the Functioning of the European Union, State aid must be notified to and approved by the European Commission. However, specific categories of aid can, if they fulfil certain conditions, be granted by the EU Member states without prior notification and approval pursuant to the General Block Exemption Regulation (the "GBER").

The GBER, first adopted in 2014, sets out the conditions that allow EU Member States to grant significant amounts of State aid under specific conditions to a wide range of listed projects and activities. The categories include aid for research and innovation, broadband connectivity, energy efficiency or for Small and Medium-sized Enterprises ("SMEs") and start-ups.

The European Commission previously reviewed and amended the GBER. The most recent amendment,implemented in 2023, was intended to provide Member States with more flexibility to support key sectors for the transition to a net-zero industry.

The European Commission's review

With this review of the GBER the European Commission aims to further simplify and modernise the rules in line with the initiatives to further EU competitiveness and decarbonisation announced in January and February 2025 respectively; the Competitiveness Compass and the Clean Industrial Deal. The Competitive Compass is intended to set a path for Europe to become the place where future technologies, services, and clean products are invented, manufactured, and put on the market, while being the first continent to become climate neutral. The Clean Industrial Deal is a business plan to support the competitiveness and resilience of EU industry intended to accelerate decarbonisation, while securing the future of manufacturing in Europe.

The review of the GBER aims to further align the State Aid rules with the EU's Competitiveness Compass and the Clean Industrial Deal. The objective is to reduce administrative burdens for businesses, removing overly complicated conditions, to harmonise State Aid rules and to speed up the assessments. Further, the review aims to make accessing State Aid easier for all businesses, but in particular for SMEs and to include additional types of subsidies based on cases handled by the European Commission over the last years.

As part of the review process, the European Commission has launched a Call for Evidence and a public consultation aimed at gathering feedback from stakeholders on the application and interpretation of the current GBER.

The call for input on the European Commission's review of the GBER provides a formal channel for stakeholders to share their experiences with the current framework and suggest adjustments for the future State Aid regulation in the EU. The consultation is open to all interested parties, including companies eligible for aid, public authorities and industry organisations, as well as to national and regional authorities involved in their administration.

This initiative forms part of the European Commission's broader efforts to support the transition to a climate-neutral economy. It complements the recent adoption of the Clean Industrial Deal State Aid Framework, which aim to accelerate deployment of renewable energy schemes and decarbonisation technologies across the EU [link].

Plesner comments

The feedback received through the questionnaire points to a number of gaps in the current framework. The 2023 amendment to the GBER was intended to introduce greater flexibility, especially to support the green and digital transitions, but respondents note that under GBER's current scope critical sectors such as pharmaceuticals, steel, hydrogen and medical technology, which are essential for EU strategic autonomy, resilience, or green transition, remain insufficiently covered.

Other respondents refer to challenges relating to the application of the GBER, including challenges with aligning different funding rules and with accommodating newer forms of financing. Some call for more flexible approaches to funding, including cluster-scale projects, results-based models and simplified fixed-amount funding.

Overall, the input indicates that while the 2023 amendment marked progress, there is room for the upcoming revision to bring the GBER more closely in line with Europe's industrial, health and climate objectives.

Parties interested in the review of the GBER can reply to the questionnaire available, where it is also possible to review input from other stakeholders. The deadline for input is 6 October 2025.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.