The European Commission proposes updating the criteria that will establish, between 2028 and 2034, the areas in which member states can grant regional aid to companies. The review will take into account new socioeconomic data and the specific difficulties faced by the eastern regions bordering Russia, Belarus, and Ukraine.
The eastern regions of the European Union bordering Russia, Belarus, and Ukraine could benefit from tailored treatment in future regional aid rules, which will apply between 2028 and 2034. The European Commission proposes updating the criteria used to identify the areas in which member states can support company investments, taking into account the latest socioeconomic data and the specific difficulties caused by the geographical position of these regions.
In short
1. The Commission is preparing new criteria based on which member states will delineate the regions eligible for aid intended for investments and economic development during the period 2028–2034.
2. The proposal separately considers the difficulties of the eastern EU regions bordering Russia, Belarus, and Ukraine, without the published document identifying yet the areas that will become eligible or the applicable levels of support.
3. The currently approved regional maps allow for the granting of aid until December 31, 2027. Each member state must prepare and notify a new map for the upcoming period.
4. Inclusion of a region on the map does not mean that firms automatically receive funding. It allows the member state to create schemes or grant aid within the limits and conditions set by EU rules.
5. The consultation is open until September 30, 2026. The Commission intends to adopt the revised guidelines by the end of the year, so that the new maps can come into force in 2028.
Regional aid allows member states to support investments and job creation in areas where the level of development is lower or where they face specific economic difficulties. Funding can reduce some of the costs incurred by companies for building or expanding production capacities, purchasing equipment, and other eligible investments.
Member states cannot grant the same level of support in any region. Eligible areas and the maximum intensity of aid are established through national maps approved by the European Commission, based on the criteria set out in the European guidelines on regional aid.
The current maps apply from January 1, 2022, until December 31, 2027. For regional aid to continue after this date, member states must prepare new maps, and the Commission must approve them before they can be used.
The proposal published by the Commission updates the framework used to delineate areas during the period 2028–2034. The assessment will start from the latest data on the socioeconomic development of the regions, which may change the list of eligible areas compared to the current period.
A region that has approached the European average may receive a lower level of aid or may exit the category of supported areas. A region where the economic situation has deteriorated may become eligible or may receive access to a higher intensity, depending on the criteria that will be included in the final form of the guidelines.
The Commission proposes to also take into account the challenges faced by the eastern EU regions bordering Russia, Belarus, and Ukraine. These difficulties have been identified separately in a European communication regarding the eastern regions.
The presentation document does not specify which regions will be included, what additional indicators will be applied, or by how many percentage points the maximum intensity of aid could increase. These elements will depend on the final text of the guidelines and the maps prepared subsequently by each member state.
The position at the eastern border does not automatically produce eligibility. The Commission will have to apply the adopted criteria, and member states will need to demonstrate that the proposed areas meet the necessary conditions for inclusion on their regional maps.
The maps do not directly allocate money from the EU budget and do not create an individual right to funding. They establish the geographical framework and the maximum level within which national or regional authorities can build support programs financed from public resources.
A member state may decide not to fund all areas included on the map or to set lower support rates than the permitted ceiling. Actual granting depends on the existence of a scheme, the available budget, the type of investment, and the fulfillment of applicable conditions by the company.
The intensity of aid represents the proportion of the eligible costs of the investment that can be covered by public support. The level varies depending on the situation of the region and can be increased under certain conditions for small and medium-sized enterprises.
The guidelines aim to allow the development of disadvantaged regions without member states with larger budgets attracting investments through disproportionate subsidies. Common ceilings limit competition among national authorities for the same project and seek to maintain comparable conditions in the single market.
Regional aid can influence the choice of location where a company builds a factory or expands an activity. To be permitted, the support must contribute to the development of the area and not produce excessive distortion of competition, including through the artificial relocation of activity from another region.
The guidelines also establish the types of investments, companies, and costs that can benefit from support. The communication regarding the consultation does not present detailed changes to these conditions, focusing on updating territorial data and identifying eligible areas.
The Commission requests observations especially from national and regional authorities that grant aid, but the consultation is open to all interested parties. Responses may address the proposed criteria, their effects on the regions, and how the rules would be applied.
The project will be discussed separately in a meeting between the Commission and representatives of the member states. The consultation does not represent the adoption of the guidelines, and the text may be modified following contributions received and discussions with governments.
The Executive Vice-President of the European Commission for a clean, just, and competitive transition, Teresa Ribera, stated that the review aims to direct support to the regions with the greatest needs, while maintaining fair competition conditions at the same time.
"Our proposed amendment of the State aid rules for regional aid ensures that support is directed to the regions where it is most needed while ensuring a level playing field in the Single Market," said Ribera.
The Commission intends to adopt the revised guidelines by the end of 2026. The timeline would give member states the year 2027 to prepare and notify the new maps, so that they can be applied from January 1, 2028.
Regional aid is one of the exceptions through which public funding granted selectively to companies can be considered compatible with the internal market. They aim to develop areas with a low standard of living, high unemployment, or other structural and territorial disadvantages.
Eligible regions are classified into different legal categories, depending on the severity of economic problems and the basis in the EU treaties used for authorizing support. The category in which an area is classified influences the ceiling of aid that can be granted.
Updating the guidelines does not approve a specific scheme and does not confirm that a certain region will receive support after 2027. This will become clear after the adoption of the rules and the approval of the new regional maps presented by the member states.
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