Posted: 8 / 12 / 2014
State aid: Commission approves Greek regional aid map 2014-2020
The European Commission has approved under EU state aid rules Greek's map for granting regional development aid between 2014 and 2020. The map is based on the new regional aid guidelines adopted by the Commission in June 2013, which set out the conditions under which Member States can grant state aid to businesses for regional development purposes. The guidelines aim to foster growth and greater cohesion in the Single Market.
A regional aid map defines the regions of a Member State eligible for national regional investment aid under EU state aid rules. It will be in force between 1 July 2014 and 31 December 2020. The map also sets the maximum levels of aid (so-called "aid intensities") that can be granted to regional investment projects carried out by large enterprises in the assisted areas at between 10% and 25% of total investment costs, depending on the area concerned. These intensities can be increased for investments carried out by medium sized enterprises by 10% and for small enterprises by 20%.
The new regional aid map for Greece will cover its entire territory and 100 % of its population, because the country benefits from the European Stability Mechanism.
Regional aid is meant to benefit the most disadvantaged regions of Europe. Under the new map, seven areas (Anatoliki Makedonia and Thraki, Kentriki Makedonia, Thessalia, Ipeiros, Dytiki Ellada, Peloponnisos and Vorio Aigaio) which have a GDP per capita below 75% of the EU average - covering 56.1% of the population of Greece - will be eligible for regional investment aid.
In the previous period, four more areas had a GDP below 75% of the EU average. In order to ensure a smooth transition, the regions of, Ionia Nisia, Kriti, Dytiki Makedonia and Attiki covering 43.9% of the population of Greece, will continue to be eligible for regional aid until 2020. As from 2018, the maximum aid intensities will be reduced, except for the areas of Kastoria and Florina that share land borders with a country outside the European Economic Area (EEA) and are therefore entitled to keep higher aid intensities.