17.12.2021

THE MAP OF REGIONAL AID FOR BULGARIA FOR THE PERIOD 2022-2027 HAS BEEN APPROVED

The European Commission has approved, in accordance with the EU rules on state aid, the map of Bulgaria for granting regional aid from January 1, 2022 to December 31, 2027 within the revised guidelines for regional aid.

The revised Guidelines on Regional Aid, adopted by the Commission on 19 April 2021 and entering into force on 1 January 2022, enable Member States to help Europe's most disadvantaged regions to catch up and reduce disparities in economic prosperity, income and unemployment - the cohesion goals that underpin the Union. In addition, they give Member States more opportunities to support regions facing transition challenges or structural challenges, such as depopulation, to make a full contribution to the environmental and digital transition.

At the same time, the revised regional aid guidelines contain strong measures to prevent Member States from using public funds to stimulate the export of jobs from one EU Member State to another, which is essential for fair competition in the single market.

The map of Bulgaria for regional aid indicates the Bulgarian regions that meet the conditions for granting regional investment aid. In addition, it sets out the maximum aid intensities in the eligible regions. The aid intensity is the maximum amount of state aid that can be granted to a beneficiary, expressed as a percentage of the eligible investment costs.

According to the revised guidelines for regional aid, the conditions for granting regional aid are met by regions covering the entire population of Bulgaria.

• The North-West, North-Central, North-East, South-East and South-Central regions are among the most disadvantaged regions in the EU, with GDP per capita below 75% of the EU average. These regions are eligible for aid under Article 107 (3) (a) TFEU (so-called "a" regions), with a maximum aid intensity for large enterprises of 50%. The Commission also approved an increase of up to 60% in the maximum aid intensity for nine areas in these type "a" regions due to the relatively high depopulation in the last decade (Vidin, Montana, Vratsa, Pleven, Lovech, Gabrovo, Targovishte, Yambol and Smolyan).
• In view of its positive economic development, the South-West region is no longer considered a type "a" region, but a pre-defined region under Article 107 (3) (c) TFEU (type "c" region), as all regions which until 2021 were of type "a" and for the forthcoming period no longer meet the conditions for this category. The maximum aid intensities for large enterprises in this region will be 20% by the end of 2024 and 15% after that date. However, for two areas in the South-West region adjacent to type "a" regions, the aid intensity will be increased to 45%. The Commission has also approved maximum aid intensities for one area in the South-West region (Kyustendil) between 20% and 25% due to its relatively high depopulation over the last decade.

In each of the above regions, the maximum aid intensities may be increased by 10 percentage points for investments by medium-sized enterprises and by 20 percentage points for investments by small enterprises in the case of their initial investment with eligible costs of up to EUR 50 million.

Following the launch of the future Territorial Plan for a Fair Transition under the Fair Transition Fund Regulation, Bulgaria will have the opportunity to notify the Commission of changes to the regional aid map approved today in order to maximize aid intensities in future areas of the Fair Transition transition, as indicated for type "a" regions in the revised regional aid guidelines.

Context

Europe has always been marked by significant regional disparities in economic prosperity, income and unemployment. Regional aid aims to support the economic development of disadvantaged regions in Europe, while ensuring a level playing field between Member States.

In the Guidelines on regional aid, the Commission shall determine the conditions under which regional aid may be considered compatible with the internal market and shall establish the criteria for determining the regions eligible under Article 107 (3) (a) and (c). of the Treaty on the Functioning of the European Union (type "a" and "c" regions respectively). The annexes to the guidelines list the least favored regions (so-called "a" regions), which include the outermost regions and the regions where GDP per capita is less than or equal to 75% of the average. for the EU, and pre-defined 'c' regions, which are former 'a' regions and sparsely populated regions.

Member States may designate so-called "c" type regions which are not pre-defined, subject to a maximum pre-defined type "c" coverage (figures are given in Annexes I and II to the Guidelines), and in accordance with certain criteria. Member States need to submit their proposal for regional aid maps to the Commission for approval.

A non-confidential version of today's decision will be available under case number SA.64724 (in the State Aid Register) on the website of DG Competition. New publications of State aid decisions on the Internet and in the Official Journal are listed in the State Aid Weekly e-News.