With increased rates by 5-25% the regional aid map of Greece for the period 2022-2027, under the revised regional aid guidelines (‘RAG’), was approved by the European Commission, in line with EU State aid rules.
Regional state aid for the period 2022-2027 is increased by 5-25% compared to the rates in force in the previous period, with the new rates potentially reaching up to 60% for large enterprises, 70% for medium-sized enterprises and 80% for small enterprises.
With the revised RAG, adopted by the Commission on 19 April 2021 and which entered into force on 1 January 2022, Greece has increased possibilities to support 12 of the 13 Regions – to catch up with the European average and reduce disparities in economic prosperity, income and unemployment – cohesion objectives that are at the heart of the Union – as well as to address transitional or structural challenges; such as depopulation, so as to contribute fully to the green and digital transitions.
Eligible for regional investment aid are the Regions of North Aegean, South Aegean, Crete, Eastern Macedonia-Thrace, Central Macedonia, Western Macedonia, Epirus, Thessaly, the Ionian Islands, Western Greece, Central Greece and the Peloponnese. In these regions the maximum aid intensities are fixed, depending on gdp per capita, between 30-50% for large enterprises.
In all the above areas, the maximum aid intensities are increased:
- by 10% for investments made by medium-sized enterprises and
- by 20% for investments by small enterprises, for their initial investments with eligible costs of up to EUR 50 million. euro.
As far as Attica is concerned, the maximum aid intensities for large companies in the Western Sector of Athens 15%, in Eastern Attica, Western Attica and in Piraeus/Islands 25% are set.
In addition, once the Just Transition Development Plan is implemented under the Just Transition Fund Regulation, Greece will notify, as it may be, an amendment to the regional aid map with a 10% surcharge on the maximum aid intensity for future Just Transition regions.
The Minister of Finance, Mr. Christos Staikouras, stated: “With the approval by the European Commission of our country’s charter for the granting of regional aid for the period 2022-2027, the months-long, intensive efforts to promote the proposals of the Greek side, both at a technical and at a high political level, are coming to fruition. In this context, the main thing is that the objective of increased aid rates for regions of our country is achieved, depending on their development needs and the specificities of just transition areas. At the same time, the conditions are being created for the stimulation of regional development, the transition to the post-lignite era and the strengthening of business activity – small, medium and large – in a way that will contribute to ensuring high, sustainable and socially fair economic growth.
The Minister of Development &Investments, Mr. Adonis Georgiadis, stated: “After negotiations with the European authorities that lasted throughout 2021, we are pleased to announce the new regional aid map as it applies for the period 2022-27. The rates of aid are significantly increased in critical Regions so as to allow us to reduce the inequality between the Regions and to proceed with the economic development of the country with greater speed”.
