2024 State Aid: EU Nations Prioritize Key Long-term Goals

European Commission

competition-policy.ec.europa.eu/state-aid/scoreboard_en">2024 State aid Scoreboard providing a comprehensive overview of State aid expenditure in the EU in 2023. While the overall spending dropped to €186.78 billion in 2023 from €243.27 billion in 2022, Member States channeled 73% of funds towards EU policy objectives, such as environmental protection and energy savings, research, development and innovation, and regional development.In 2022, this share was 49%. The total amount of aid spent on these key objectives increased to €136.78 billion from €119.98 billion.

The most notable reductions in spending were caused by the phasing out of the crisis aid aimed to mitigate the effects of the coronavirus pandemic and the Russian invasion of Ukraine. This means State aid spending entered a normalisation phase in 2023.

The State aid Scoreboard, based on Member States' reports shows in particular that in 2023:

  • Member States reported approximately €186.78 billion in total State aid expenditure. This corresponds to 1.09% of the 2023 EU GDP and represents a 23% reduction compared to 2022, when overall expenditure was €243.27 billion. Member States have focused on supporting companies in reaching key long-term EU priorities, and strongly reduced crisis aid granted in light of the COVID-19 pandemic. EU Member States spent a total of €136.78 billion on State aid for key EU priorities, or 0.8% of EU GDP. This corresponds to a 14% increase compared to 2022, when the expenditure for these measures was €119.98 billion.
  • Environmental protection and energy savings are the policy objectives on which Member States spent by far the most in 2023 (€55.32 billion, accounting for around 30% of overall State aid expenditure). Remedying a serious disturbance in the economy was the second policy objective, accounting for around 25% of overall EU State aid expenditure.
  • Measures approved under the Temporary Crisis and Transition Framework ('TCTF') to counterbalance the negative effects of Russia's war against Ukraine on the economy and to foster the transition towards a net-zero economy accounted for €39.45 billion (21% of State aid spending and 0.23% of EU GDP)
  • The reduction in 2023 State aid expenditure was driven by the phase-out of the measures adopted to mitigate the economic effects of the coronavirus pandemic. In 2023, this type of aid expenditure dropped to 0.06% of EU GDP. The expenditure was only a relatively small part of the budget of crisis measures approved: 34% for COVID-19 support and 19% for all TCTF measures.
  • The share of block-exempted measures keeps rising. Member States implemented 2,105 new measures under the General Block Exemption Regulation ('GBER'), 690 under the Agricultural Block Exemption Regulation ('ABER') and 30 under the Fishery Block Exemption Regulation ('FIBER') in 2023. This corresponds altogether to 88% of the total number of new State aid measures and 93% of all the new State aid measures excluding crisis aid. The total amount of State aid spent under the block exemptions was €70.53 billion (around 38% of the total expenditure in 2023).

Background

This 2024 edition of the State aid Scoreboard includes six special focus points, namely State aid measures supporting the economy in mitigating the impact of Russia's war against Ukraine and to foster the transition to a new-zero economy; State aid provided in the context of the coronavirus crisis; Block-exempted State aid expenditure, State aid for energy and environmental protection, renewables and energy savings; deployment of broadband networks; industrial innovation and clean tech manufacturing.

To have a better overview of the aid actually granted under the two crisis frameworks, the Commission conducted periodic surveys to seek information from Member States. The results are summarised in a series of policy briefs available here .

/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.