E.C. Proposes Higher Threshold For State Aid

Law360, New York (September 20, 2006, 12:00 AM EDT) -- The European Commission has proposed revised state aid guidelines that would allow European Union member states to parcel out small subsidies without raising regulators’ eyebrows.

The revised guidelines double the amount that a government may give a company over a three year period without incurring the E.C.’s scrutiny, raising the figure to €200,000 from €100,000.

Loan guarantees are also covered by the new rules, provided that the loan amount doesn’t exceed €1.7 million.

The exemptions will only apply to aid that can be quantified in advance,...
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