New guidance from the European Commission shows how state aid rules allow EU member states to provide social support and social investment. This guidance assists member states in designing state aid measures for social support and social investment, as set out in the Clean Industrial Deal.
A tool to navigate state aid for social support
The guidance for the first time brings together available information on State aid for social support and social investments. It presents key State aid instruments and measures that allow national authorities to support social objectives, including:
- Aid for Services of general economic interest to finance public service obligations entrusted to one or more service providers. This concerns services of public interest that the market alone would not supply at all or not in the desired form in terms of quality, safety, affordability, equal treatment or universal access. Examples are social and affordable housing services and healthcare;
- Aid for employing workers with disadvantages or disabilities, training aid and knowledge measures benefitting employees;
- Support to households for energy efficiency measures to help with the transition towards a climate-neutral economy;
- Selected measures with social benefit, including aid to SMEs and startups, as their access to finance may be limited and hinder both companies and broader economic and social objectives.
The guidance provides general information on public support measures that do not constitute State aid and explains what types of State aid are allowed under EU rules.
The guidance is a ‘living tool’ and will be updated when State aid rules change. This will be done, for example, when the Commission adopts an updated General Block Exemption Regulation.
Background
As part of the Clean Industrial Deal, the Commission announced dedicated guidance that member states can use when designing State aid measures for social support and social investment. Effective social support and social investment are key for achieving the objectives of the Clean Industrial Deal, including a just transition that delivers quality jobs and empowers people. Public support to companies, even if it is for achieving social policy objectives such as upskilling workers or the provision of social housing, may constitute State aid that has the potential to distort competition in the internal market, which means it is subject to EU state aid rules. At the same time, EU state aid rules include many possibilities for member states to grant aid for social objectives without compromising the level playing field in the internal market.
For more information
EU state aid policy and legislation
