Koen Van de Casteele
European Commission Our ref. 01.09.2023 No 12.1-2/5630-1
DG Competition
[email protected]
Question about incentive effect
(GBER) in case of several partners
and different categories of aid
Dear Mr Koen Van de Casteele,
Ministry of Finance as a coordinating body of State aid issues in Estonia has questions on
interpreting Article 6(2) of the general block exemption regulation (Commission Regulation
(EU) No 651/2014, hereinafter GBER). The questions relate to the projects implemented in
partnership and projects having received aid under different aid categories of GBER.
1) Incentive effect of aid in case a project is implemented by several partners and the
initial aid granting decision is changed (amended) because the aid amount is
redistributed between the partners.
We have the following example: an aid application was submitted for getting grant for R&D
project (GBER Article 25) in the total amount of 300 000 euros, of which 150 000 euros for
the applicant and 150 000 euros for its partner. The applicant and the partner were supposed
to undertake different industrial research activities in the cause of the project. The aid granting
decision was made so that it mentioned the overall aid amount 300 000 euros and concrete aid
amounts for both the applicant (150 000 euros) and for the partner (150 000 euros). The
activities of the project have started.
During the course of implementation of a project, there is a need to redistribute activities and
therefore aid between partners. As a result, the amount of aid granted to the applicant will
increase, because the range of activities carried out by him changes, and the amount of aid
granted to the partner will decrease. There are no changes to the activities – the project remains
the same as initially applied for. The total eligible costs of the project do not increase and the
total amount of aid for the project does not increase either. The project is not an effective
collaboration project.
Question: Is the increase of aid amount for the applicant compared to the amount indicated in
the aid application (and in the aid granting decision) compatible with the incentive effect
criterion stipulated in Article 6(2)?
2) Incentive effect in case of changing the distribution of the aid granted between
different categories of aid.
Suur-Ameerika 1 / 10122 Tallinn / Estonia / +372 611 3558 /
[email protected]
www.rahandusministeerium.ee / Reg. code: 70000272
The second question relates to the project implemented by one company. The project has
received aid under different aid categories of GBER, e.g., aid under GBER Article 25 and
Article 14.
For example: the original aid granting decision stated that the total amount of aid for the
project is 100 000 euros, of which 40 000 euros for R&D (Article 25) and 60 000 euros for
regional aid (Article 14). The works on the project have started. Later the beneficiary would
like to change the activities within the project that would result in a reduction of regional aid
by 20 000 euros and increase of aid for R&D activities by the same amount. The overall aid
amount remains the same.
Question: Would the transfer of aid between different aid categories breach an incentive effect
rule?
Yours sincerely,
(signed digitally)
Kaur Kajak
Deputy Secretary-General
For Public Governance Policy
Ljudmilla Sokolnikova +372 611 3360
[email protected]
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