Guidelines for Regional Aid
The guidelines of the European Commission define the requirements, conditions, and procedures for granting regional aid within the EU. They include provisions on aid maps, maximum aid intensities, incentive effects, transparency, and evaluation to specifically support disadvantaged regions.
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Grant criteria
Funding objective
The objective of regional aid is to promote the economic development of disadvantaged regions in the EU and to strengthen territorial cohesion. To this end, investments are to be encouraged that foster employment and reduce structural disadvantages, while minimizing negative impacts on competition and trade.
Eligible to apply
- Companies
- Public Institutions
- Non-profit Organizations
Funding requirements
- Fulfillment of the socioeconomic and geographical criteria defined in the guidelines (e.g., per capita GDP, population density, unemployment rate)
- Designation of funding areas according to the specified methods (A and C funding areas)
Evaluation criteria
- Proof of incentive effect (investment or location decision)
- Compliance with funding area maps and corresponding population shares
- Adherence to the maximum permissible aid intensities
- Transparency requirements and correct documentation/evaluation
Description
The Regional Aid Guidelines of the European Commission provide a clear framework for granting state subsidies aimed at promoting disadvantaged regions within the EU. The program supports projects that seek to stimulate economic development in areas with structural disadvantages and to strengthen territorial cohesion. Investment-oriented measures and operating aid are distinguished – both instruments are designed and scaled to meet regional development needs. By setting maximum aid intensities in different aid areas (A aid areas and C aid areas), it is ensured that state support does not lead to distortions of competition but instead acts as an incentive for job creation and location strengthening.
The regional investment aid targets companies, public institutions, and non-profit organizations wishing to implement a project in disadvantaged regions. By promoting initial investments, new economic activities can be established, and existing enterprises modernized or diversified. Particular emphasis is placed on demonstrating an incentive effect: the approved aid must decisively contribute to companies making investment decisions or maintaining their location in these regions, which would otherwise be uneconomical. The requirements for determining eligible costs – whether based on investment expenditures or projected wage costs – enable a transparent and comprehensible assessment of the requested funding.
Additionally, the detailed provisions regarding the aid area maps help ensure that the proportion of the population in the designated aid areas is clearly defined and consistently maintained. By combining predefined and non-predefined C aid areas, it is ensured that national differences in economic performance and unemployment rates are adequately taken into account. The regular review and evaluation of the aid schemes also allow for a dynamic adjustment of the funding program to changing regional conditions. Overall, these guidelines represent a comprehensive instrument that contributes to reducing regional disparities and sustainably promoting economic cohesion within the EU.