CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Regional Aid Maps Approved For Luxembourg And Malta

Regional Aid Maps Approved For Luxembourg And Malta

by Ulrika Lomas, for LawAndTax-News.com, Brussels

17 October 2006


The European Commission announced on Friday that it has approved, under EC Treaty state aid rules, the regional aid maps covering the period 2007-2013 for Luxembourg and Malta.

These decisions form part of a wider exercise to review regional aid systems in all Member States in accordance with the new Regional Aid Guidelines adopted in December 2005.

The new guidelines aim at re-focussing regional aid on the most deprived regions of the enlarged EU, while allowing for improvement of competitiveness and to provide for a smooth transition. The maps of seven other Member States have already been approved by the Commission.

A regional aid map defines the regions of a Member State eligible for national regional investment aid for large enterprises under EC Treaty state aid rules and establishes the maximum permitted levels of such aid in the eligible regions.

The adoption of the regional aid map for the Member State concerned is a pre-condition to ensure the continuity of the regional policy and Structural Fund programmes after 2006, as all current maps will expire on December 31st. If no new regional aid map is approved by the Commission before January 1st, 2007, the Member State in question will not be able to grant any regional aid within its territory..

Article 87 (3) (a) of the EC Treaty foresees the possibility to grant regional state aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment. The Regional Aid Guidelines define this type of region as having a GDP below 75% of the Community average. In line with these principles, the entire territory of Malta will continue to be eligible for regional investment aid at a maximum aid intensity of 30% of the eligible costs.

Article 87(3)(c) of the EC Treaty, meanwhile, foresees the possibility to grant regional state aid to facilitate the development of certain economic activities or of certain economic areas where such aid does not adversely affect trading conditions to an extent contrary to the common interest.

The regional aid guidelines define this type of region as areas of a Member State which are disadvantaged in relation to the national average. As these regions are less disadvantaged than areas covered by Article 87(3)(a), both the geographical scope and the aid intensity are strictly limited.

In line with these principles, 16% of Luxembourg’s population remain eligible for regional investment aid at a maximum aid intensity of 10% of the eligible costs.

Competition Commissioner, Neelie Kroes observed that:

“The approved regional aid maps support our cohesion policy and contribute to the State Aid Action Plan’s objective of less and better targeted aid. Luxembourg and Malta will now be able to organise a smooth transition from their current regional aid system towards their regional development strategies for 2007-2013.”


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »