Regional aid map up to 2020 approved

The entire territory of Bulgaria will be eligible to get investment

Photo: Pho­to: EPA Bul­gar­ia's new region­al aid map would help author­i­ties to pro­mote invest­ment through­out the coun­try, accord­ing to Com­mis­sion­er Joa­quin Almu­nia.

The Com­mis­sion has approved Bul­gar­ia's map for grant­ing state aid between 2014 and 2020. The map will be in force from 1 July 2014 to 31 Decem­ber 2020. Under Bul­gar­ia's region­al aid map, the entire ter­ri­to­ry of the coun­try will be eli­gi­ble for region­al aid in an attempt to fos­ter growth. "Bul­gar­ia's new region­al aid map allows Bul­gar­i­an author­i­ties to pro­mote invest­ment through­out the coun­try and fur­ther eco­nom­ic growth and cohe­sion in the Sin­gle Mar­ket. It also pro­vides a basis for an eas­ier and tar­get­ed use of region­al pro­grammes co-financed by the Euro­pe­an Struc­tur­al Funds," Com­mis­sion Vice Pres­i­dent in charge of com­pe­ti­tion pol­i­cy Joa­quin Almu­nia said.

The Com­mis­sion has approved last week Bul­gar­ia's map for grant­ing state aid between 2014 and 2020, the EU press serv­ice report­ed. The map will be in force from 1 July 2014 to 31 Decem­ber 2020. Under Bul­gar­ia's region­al aid map, the entire ter­ri­to­ry of the coun­try will be eli­gi­ble for region­al aid in an attempt to fos­ter growth.

"Bul­gar­ia's new region­al aid map allows Bul­gar­i­an author­i­ties to pro­mote invest­ment through­out the coun­try and fur­ther eco­nom­ic growth and cohe­sion in the Sin­gle Mar­ket. It also pro­vides a basis for an eas­ier and tar­get­ed use of region­al pro­grammes co-financed by the Euro­pe­an Struc­tur­al Funds," Com­mis­sion Vice Pres­i­dent in charge of com­pe­ti­tion pol­i­cy Joa­quin Almu­nia said.

The map defines the max­i­mum aid inten­si­ties for large com­pa­nies car­ry­ing out pro­jects in the coun­try at 50% of the total invest­ment cost in five of Bul­gar­ia's regions and at 25% in the Yugoz­a­paden region. The pro­posed max­i­mum aid inten­si­ty is for pro­jects with eli­gi­ble expend­i­ture below €50m. These per­cent­a­ges can be increased by 20 per­cent­age points for invest­ments car­ried out by small and 10 per­cent­age points by medi­um sized enter­pris­es.

Under Arti­cle 107(3)(a) of the Trea­ty on the Func­tion­ing of the EU Mem­ber States are allowed to grant aid in are­as with a stand­ard of liv­ing below the EU aver­age or with high unem­ploy­ment. Five regions in Bul­gar­ia have a GDP per cap­i­ta low­er than 45% of the EU aver­age and one - the Yugoz­a­paden region - low­er than 60% and 75% of the EU aver­age.

Under the region­al aid guide­lines 2014-2020, are­as with a GDP per cap­i­ta below 75% of the EU aver­age have pri­or­i­ty eli­gi­bil­i­ty for region­al invest­ment aid, as the main pur­pose of region­al aid is to fos­ter the devel­op­ment of the less advan­taged regions of Europe.

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