Why is the European Commission launching a consultation instead of simply writing new rules covering state aid for innovation?
Until now, the European Commission has not developed specific rules covering state aid for innovation. Such aid has been assessed on the basis of rules covering other fields of state aid (e.g. regional aid, training, risk capital, aid to SMEs) or directly on the basis of the Treaty (Articles 87 and 88). This has sometimes led to delays in approving useful state aid for innovation and to legal uncertainty. At the same time, such aid does require careful scrutiny because innovation relates to activities close to the market, which have the potential to significantly distort competition and trade. In addition, the Commission has had limited experience assessing which types of state aid for innovation should be authorised. Instead of pretending it knows best, and in a spirit of transparency and partnership, the Commission has therefore decided to consult stakeholders before deciding which specific state aid measures could be authorised on the basis of ex-ante rules.
