Competition and trade law: Horizontal state aid - Regulation 994/98 adopted by the Council

United Kingdom

The Council has adopted Regulation 994/98 on the application of Articles 92 and 93 of the Treaty to certain categories of horizontal State aid. Articles 92 and 93 set out the basic EU rules relating to State aids. The Regulation entitles the Commission to declare, by means of block exemption regulations, that certain categories of aid, in particular aid to small and medium-sized enterprises and certain regional aid, are compatible with the common market pursuant to certain provisions of the Treaty and are exempted from the normal procedures required by EU law. The Commission is also empowered to issue a regulation stating that certain aid measures do not fall within the scope of Article 92(1) provided that they do not exceed a certain fixed amount - a so-called de minimis rule.