RSS
Mitroi (EY): The European Commission extends the validity of state aids
The European Commission (CE) extends the validitiy of the state aids, representing good news for those who want to invest in Romania, considers Mihaela Mitroi, Partner, Fiscal and Judicial Assistance, EY Romania. ‘We are waiting for the Romanian authorities to adopt this extension until 2023’ Mihaela Mitroi says in a viewpoint sent to Agerpres on Monday.
According to her, the European Commission has recently adopted a new regulation for the amendment of the Regulation for statement for certain categories of aids compatible with the domestic market (GBER) and the Regulation regarding aids of minimis and Communication for the amendment of other seven sets of orientations regarding state aids.
At the same time, the EY Romania representative said that we have to deal with an extension of the validity of certain norms regarding state aids, which otherwise would expire at the end of 2020. Thus, some are extended by one year, until 2021 and others by three years, up to 2023.
The decision for the extension of certain norms took into consideration the effects of the present crisis generated by COVID-19 and the consultations with the EU member states.
By extension of these norms, the companies will be able to access as a method of financing the schemes of state aid mentioned previously until the end of 2023 ( at present, they are valid until the end of 2020).
‘I mention the fact that financing on the basis of HG 807/2014 is offered for investments of at least one million euro, in physical and non-physical assets, in the same perimeter connected to the starting up of a new unit, the extension of the capacity of an existing units, the diversification of the production of a unit by products which have not been produced previously in the unit or a fundamental change of the general production process of an existing unit. This state aid scheme is not conditioned by the creation of new workplaces, and the eligible costs, in physical and non-physical assets must meet some conditions: to be exclusively exploited by the beneficiary of the state aid to reach the objectives of the investment for which the financing was required; to be included in the assets of the beneficiary of the state aid and to be allocated to the investment for a period of minimum 5 years since the end of the investment; to be acquired in market conditions, to be new’ Mihaela Mitroi says.