EU governments wishing to offer state aid to a private company must ensure that it is done in accordance with the rules laid down in the EC Treaty.
EU rules are designed to ensure that state aid does not distort competition, or have an artificial impact on production, markets or technical development to the detriment of consumers.
Intentions to grant aid must be notified to the European Commission for validation. The new system developed under IDABC will allow Member States to encode and submit state aid notifications to the European Commission more efficiently, offering the possibility to the Commission to manage these notifications, streamlining the approval process and speeding up provision of government assistance where needed.
As of 1 January 2006, all such notifications are being submitted electronically.