This new General Block Exemption Regulation (GBER) consolidates into one text and harmonises the rules previously existing in five separate Regulations, and enlarges the categories of state aid covered by the exemption. It will take effect 20 days after publication in the Official Journal, allowing Member States to grant better targeted aid immediately.

The 2005 "State Aid Action Plan" aims to create a simple, user-friendly and coherent set of rules for aid which is likely to promote economic development without unduly distorting competition. Simplification can best be achieved with the adoption of "block exemptions" exempting Member States from the obligation of prior notification of the aid to the Commission.

In this scope the European Commission has adopted a new General Block Exemption Regulation (GBER), giving automatic approval for a range of aid measures and so allowing Member States to grant such aid without first notifying the Commission.

The Regulation authorises aid in favour of SMEs, research, innovation, regional development, training, employment and risk capital. The Regulation also authorises environmental protection aid, aid measures promoting entrepreneurship, such as aid for young innovative businesses, aid for newly created small businesses in assisted regions, and measures tackling problems, like difficulties in access to finance, faced by female entrepreneurs.

As well as encouraging Member States to focus their state resources on aid that will be of real benefit to job creation and Europe's competitiveness, the Regulation reduces the administrative burden for public authorities, the beneficiaries and the Commission.

Competition Commissioner, Neelie Kroes highlighted that “these new rules set out a clear framework to allow Member States to grant aid targeted at creating jobs, boosting competitiveness and improving the environment without the Commission having to get involved at all The Commission is therefore delivering on its commitments, in line with the State Aid Action Plan and the Small Business Act, to make it quicker and easier for Member States to give the right kinds of state aid."

This Regulation also constitutes an important and immediately effective contribution to the Small Business Act adopted by the Commission in June 2008. It will allow Member States to support small and medium-sized enterprises (SMEs) at different stages of their development. All of the 26 categories of aid covered in the Regulation can be provided to SMEs. To the extent such aid is also available to large companies, SMEs will benefit from a special top-up.

In line with the Commission's "Better Regulation" agenda, the GBER also harmonises, as far as possible, all horizontal aspects applying to the different aid areas concerned. The GBER therefore incorporates the content of a series of existing state aid instruments adopted by the Commission since 2001: aid to SMEs, research and development aid in favour of SMEs, aid for employment, training aid and regional aid.

In addition, the Regulation integrates five categories of aid which had, so far, not been block exempted: environmental aid, innovation aid, research and development aid for large companies, aid in the form of risk capital and aid for enterprises newly created by female entrepreneurs.

The exemption conditions for the latter type of aid measures are consistent with the recently adopted guidelines on state aid for environmental protection, the risk capital guidelines and the Framework on Research & Development & Innovation.

Aid measures not included in the GBER are not necessarily illegal. They will simply remain subject to the traditional notification requirement: the Commission will examine such notifications on the basis of the existing guidelines and frameworks.