The State aid Rules

The purpose of the State aid regime is to prevent governments from giving financial advantage to firms in a way that could distort competition and the European Treaty identifies that as a general principle State aid is incompatible with the common market. 

However, not all State aid is deemed to have negative effects and State aid is allowed in certain circumstances.  The circumstances where State aid may be deemed to be compatible by the European Commission are set out in the State aid rules, a series of frameworks, guidelines and block exemption regulations.

Block Exemption Regulations

Block exemption regulations set out categories of aid that have already been declared compatible by the Commission.  So long as all the terms of the particular regulation are met, there is no requirement to notify the Commission in advance and request approval before awarding aid. However, aid provided under block exemption regulations needs to be registered with the Commission and comply with strict monitoring and reporting requirements. There are currently 2 block exemption regulations in force the General Block Exemption Regulation and the Services of General Economic Interest Block Exemption Regulation.

For more information about the General Block Exemption Regulation view our General Block Exemption Regulation section.

For more information about the Services of General Economic Interest Block Exemption Regulation view the Services of General Economic Interest Block Exemption Regulation pages.

De Minimis Regulation

The De Minimis regulation refers to small amounts of aid that the Commission considers will have no substantial effect on trade and competition between member states.  There is no requirement to notify de minimis aid to the Commission. There are however specific administrative requirements that must be met  

For more information about de minimis please view our 'de minimis area' on this site.

Horizontal Frameworks and Guidelines

The horizontal rules regulate aid for objectives which apply across the economy and are aimed at solving problems that may arise in any industry and any country.  The frameworks and guidelines identify types of aid that are likely to be deemed compatible and approved by the Commission and set out the Commission's views on the meaning of aid for various purposes e.g. risk capital, research, environmental protection etc. Funding under these rules cannot be provided until approval is sought and received from the European Commission. This is done through a notification procedure. For more information about horizontal frameworks and guidelines please view our publications area.

Sectoral Guidelines and Regulations

The sectoral guidelines and regulations set out specific State aid rules and regulations for specific sectors and these take precedence over the horizontal frameworks, block exemption regulations and De minimis Regulation. 

The following sectors have special State aid rules:

• Agriculture
• Aquaculture/Fisheries
• Audio-visual (Cinema/TV production and Broadcasting)
• Postal services
• Coal
• Shipbuilding
• Transport.

Aid awarded under the sectoral rules also requires notification to the Commission.

For more information on the existing sectoral guidelines and regulations view our sectoral guidelines and regulations area.