The changes to the GBER represent a certain risk

The modernization of the rules for state aid provisioning represent one of the important topics in the field of industrial policy. Nevertheless, the EU proposal to introduce a limit regulating the possibility to make use of the block exemptions could lead to a fair amount of restrictions in the functioning of well-tried systems like investment incentives and European structural funds.

The Confederation of Industry of the Czech Republic points out that the EU proposal includes a series of risks for the future state aid provision systems. Especially, an official notification of the state aid systems in case the limit is exceeded would be necessary. If a limit is introduced the current state aid systems could be endangered in their capacity and flexibility.

From 1^th July 2014, the maximum intensity of the state aid will be reduced. For the Czech Republic, it represents a 15 percent cut. For larger companies the maximum intensity of the state aid will drop from 40 to 25 percent. It could decrease their competitiveness as for attracting the investment vis-à-vis certain regions of Poland, Hungary and Slovakia.

The General Block Exemption Regulation (GBER) represents a key element in the system for the provision of state aid as a tool of economic policy, which has as its goal the achievement of the strategic objectives of the European Union and its Member States. There are already several restrictive measures in the proposed RAG regulations, which could lead the regional aid to become in fact a constraint on business competitiveness. Any changes to the GBER must not add constraints to or further limit what exists under the current program conditions.