Cohesion and regional policy financing must respect state aid rules where relevant. Article 107 of the Treaty on the functioning of the EU prohibits state aid measures which:
Exemption clauses of relevance to the operation of the Structural Funds are:
In the context of the current financial and economic crisis, the European economic recovery plan includes a temporary framework that simplifies the rules governing state aid schemes co-financed by cohesion policy. This means that, in some cases, advances to state aid schemes could be reimbursed up to 100%.
There are also temporary arrangements (until the end of 2010) under the state aid rules to help countries tackle the effects of the credit squeeze on the real economy until 2010. This means that, under certain conditions:
DG Regional Policy has no role in interpreting the state aid rules, national and regional authorities seeking guidance in this area should consult the competent Commission department: i.e. DG Competition, DG Energy, DG Mobility and Transport, or DG Agriculture and Rural Development.