EU State aid: public consultation on the draft new General Block Exemption Regulation (GBER)

Article 108(3) of the Treaty on the Functioning of the European Union (“TFEU”) requires Member States to notify the European Commission (the “Commission”) of any plans to grant State aid and to await approval before putting the aid into effect. The General Block Exemption Regulation (Regulation (EU) No 651/2014, the “GBER” or the “Regulation”) provides a derogation from that obligation for certain categories of aid declared compatible with the internal market, setting out the general and specific conditions under which Member States may implement the relevant measures without prior notification. Since its entry into force in 2014, the GBER has become a cornerstone of EU State aid control. In 2024, around 69% of all active measures fell within the scope of the GBER, compared to 41% in 2014.

Aid categories exempted under the GBER are deemed compatible with the internal market (and therefore exempt from notification) only insofar as the measures do not give rise to significant distortions of competition and strictly comply with the conditions laid down in the Regulation. The Court of Justice has clarified that derogations from the notification obligation under Article 108(3) TFEU must be interpreted strictly, also because Member States apply and enforce those conditions under their own responsibility.

The Commission intends to adopt the final version of the new GBER by the end of 2026, with entry into force expected in January 2027. The draft currently under consultation, along with the procedures and supporting materials for submitting contributions, is available at the following link: Public consultation on the draft for a new General Block Exemption Regulation.

Outlined below is a summary of the principal changes proposed in the draft new General Block Exemption Regulation:

Simplification of the GBER

First, the draft GBER currently under consultation introduces a set of measures aimed at simplifying the compatibility conditions for State aid, particularly for measures with limited potential to distort competition. The objective is to reduce the administrative burden for Member States and beneficiaries, while facilitating targeted and relatively small-scale interventions.

A first strand of simplification concerns small amounts of aid for certain projects, such as research and development (R&D) initiatives and environmental protection measures. The draft envisages simplified conditions for granting such aid, thereby facilitating access also for beneficiaries beyond the SME perimeter, including larger undertakings, municipal undertakings, social economy entities and small mid-caps.

A further important element is the extension of the GBER’s scope to primary agricultural production, fisheries and the aquaculture sector, which are currently generally outside the scope of the Regulation, subject to certain exceptions. The proposal is intended to facilitate a more integrated design of multisectoral aid schemes, while preserving the constraints stemming from the applicable sectoral block exemption regulations.

The Commission also addresses a practical issue that has emerged under the current framework. Certain innovative start-ups may fall within the definition of undertakings in difficulty and therefore be excluded from the GBER, notwithstanding their growth potential and medium to long-term viability. To address this inconsistency, the draft introduces a new exemption allowing certain innovative start-ups to benefit from aid for research, development and innovation (R&D&I). In parallel, and in light of the feedback received through the public consultation, the Commission will assess whether the exemption should be extended to additional aid categories that are particularly relevant for the start-up ecosystem.

Finally, the draft envisages significant simplifications in the renewable energy sector, with the aim of widening Member States’ room for manoeuvre when granting operating aid. Among the most notable changes is the removal of the current annual threshold of EUR 300 million per Member State, which applies to the combined budgets of all relevant aid schemes. Removing that cap would allow a broader set of renewable energy measures to be deployed, supporting larger-scale investments and a faster energy transition.

Adaptation to social, market and technological developments

The draft new GBER also aims to update the exemption framework to reflect evolving public policy priorities, market developments and rapid technological progress. In this context, particular attention is given to the digital sector, where infrastructure and technologies are constantly evolving. The proposal seeks to clarify the rules applicable to innovative digital activities and introduces targeted forms of support designed to enhance the competitiveness of SMEs and small mid-caps. These include subsidised access to key digital infrastructure, as well as support for digitalisation costs, including the acquisition of relevant equipment and software. Overall, the changes are intended to provide a more enabling framework for the digital transition than the current regime.

Furthermore, in the transport sector, the proposal introduces a clearer and more flexible framework for aid to airports. In particular, operating aid would be extended to airports handling up to 500,000 passengers per year, expanding the scope of the exemption compared to the current notification threshold for this category, set at 200,000 passengers per year.

Streamlining of the text and the guidance document

In addition to substantive changes, the draft under consultation pursues a broader drafting rationalisation aimed at making the GBER easier to use in practice. The Regulation would be reorganised into coherent thematic sections, with the consolidation of similar provisions to reduce overlap and repetition and, at the same time, a clearer distinction between rules pursuing different objectives.

A significant portion of matters currently addressed directly in the GBER, in particular provisions of a purely illustrative nature or those that are excessively technical, would be moved into a separate guidance document and complemented with practical examples and responses to recurring interpretative questions. By way of example, in the area of investment aid for broadband infrastructure, methodologies currently set out in detail for mapping target areas would be relocated to the guidance document. While not legally binding, the guidance document is designed to enhance interpretative clarity and legal certainty, while at the same time leaving Member States greater flexibility when designing aid schemes and granting individual aid in line with the GBER conditions.

Authored by Domenico Gullo, Giulia Zammataro, and Massimiliano Bocchio.