European Commission consultation on the draft new General Block Exemption Regulation on State aid
On 25 February 2026, the European Commission launched a public consultation on its draft General Block Exemption Regulation (GBER). This simplified and modernised version is intended to respond to changes in social, technological and internal market conditions. Member States and all interested parties are invited to submit their comments until 23 April 2026.
The Commission has regularly amended and extended the Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108, also known as the GBER. Amendments and extensions have taken place in 2017, 2020, 2021 and 2023. The latest update in 2023 strengthened support for sectors that are strategic for the transition to climate neutrality and for the development of a net-zero emissions industry as part of the implementation of the EU Green Deal.
GBER is the tool for administrative simplification of State aid
The GBER is one of the key instruments of European State aid policy. It allows EU member states to create aid schemes or grant individual aid that is declared compatible with the internal market without having to notify the European Commission in advance, provided that the conditions set out in the GBER are met. Member States must provide afterwards the Commission with information using a simplified form.
The GBER covers a wide range of aid categories: regional aid; small and medium enterprises (SMEs) ; research, development and innovation (RDI); energy and environmental protection; training; various types of infrastructure: etc.
This European legal basis has simplified and accelerated the granting of aid, allowing Member States to act more quickly and flexibly.
Its numerous ad hoc amendments, however, made its application more complex and a more thorough revision was needed.
The new version of the GBER proposed by the European Commission is in line with its initial objective: to reduce administrative burden and make the legal framework clearer, more readable and easier to implement. It has been designed to improve the effectiveness of the instrument by facilitating its interpretation and application by Member States, as well as by correcting inconsistencies. This revision is in line with the guidelines of the EU Competitiveness Compass (a strategic framework to strengthen the EU's economic position) and the Clean Industrial Deal, which encourage regulatory simplification and the mobilisation of essential investments while preserving fair competition within the single market.
As part of the public consultation, the draft GBER is submitted to interested parties in order to gather their comments before its adoption at the end of 2026 for entry into force on 1 January 2027. The draft published on 25 February 2026 takes into account the views expressed in a wide-ranging call for contributions and a public consultation conducted in 2025.
Changes envisaged by the European Commission
The amendments envisaged by the European Commission are based on three main areas: simplifying the rules on the compatibility of aid, adapting the GBER to social, technological and market developments, and streamlining the text as a whole.
Simplification of compatibility conditions
- The new draft GBER introduces simplified conditions for small amounts of aid, applicable to specific projects such as R&D or environmental protection, regardless of the size of the companies, in order to facilitate access to aid, particularly for SMEs and social enterprises.
- The Commission will better respond to the needs of SMEs by making risk-financing instruments more flexible and allowing forms of aid based on favourable tax treatment of options and warrants for employees. Social enterprises will also have easier access to aid for SMEs.
- The granting of operating aid for renewable energy will be simplified and expanded. For example, the overall annual ceiling of EUR 300 million for aid schemes will be removed, while an individual ceiling per beneficiary will be maintained.
- The agricultural production, fisheries and aquaculture sectors will now be eligible for most categories of aid provided for in the GBER, allowing Member States to opt for the GBER or for the sectoral exemption applicable to these specific sectors.
- The project expands the possibility of using simplified cost options (e.g. flat rates, unit costs, lump sums) instead of systematically using actual costs whenever eligible costs need to be identified.
- The rules on RDI are being modernised. Young innovative companies will now have easier access to RDI aid. In addition, the granting of aid to innovation clusters, research infrastructures and experimental and testing infrastructures will also be simplified.
- The Commission plans to remove the obligation to evaluate aid schemes with large budgets.
Adaptation to changes in public policy, the social context, the market and technology
The draft includes:
- Updated provisions to respond to the housing crisis, providing for higher aid intensities for energy efficiency measures in social or affordable housing projects, as well as for social enterprises active in housing;
- Stronger incentives for worker upskilling and reskilling to support competitiveness. For example, a higher level of aid may be granted for training in digital and STEM skills than is currently allowed under the GBER;
- The scope of operating aid for airports will be extended to 500,000 passengers per year, with the current notification threshold for this category of aid being 200,000 passengers per year. For investment aid for airports with between 500,000 and three million passengers per year, the Commission is seeking the sector's opinion on the delimitation of the catchment area excluding the application of the GBER (i.e. either 150 km or 200 km).
- Clarification of the compatibility of aid granted through financial instruments managed by intermediaries, such as banks or investment funds, in order to ensure a more secure and uniform application of these schemes.
Rationalisation
The revision of the GBER is also intended to simplify and restructure regulation. The GBER had become a long, complex and unwieldy document, difficult for public authorities and aid beneficiaries to apprehend in practice.
Aid categories will be grouped by theme for greater consistency with some provisions merged to avoid repetition and others separated when they concern distinct subjects. Relevant definitions will be included in the chapters relating to the aid concerned. The text will be clarified without necessarily changing its content, for example by explaining in more detail how aid amounts are calculated.
Purely illustrative elements (e.g. lists of eligible costs) will be removed from the GBER and included in a guidance document, in order to make the GBER more streamlined, more readable, and focused on the essential rules. This will give Member States more flexibility in designing aid measures, while providing them with practical guidelines.
This guidance document will explain how to apply certain concepts in the GBER, provide concrete examples (e.g. port infrastructure, digital infrastructure, AI, data centres, etc.), specify the types of investments that are eligible, and answer frequently asked questions on interpretation.
The document will accompany the revised version of the GBER (at the time of its adoption or shortly thereafter). The guidance document will not be legally binding but will offer increased legal certainty to help Member States design their aid schemes or grant individual aid in compliance with the GBER.
Next steps
The consultation is open until 23 April 2026.
Interested parties can participate via the following link:
2026 gber - Competition Policy - European Commission
The Commission will adopt the new GBER at the end of 2026. It will enter into force on 1 January 2027.
Member States will have six months to adapt their existing schemes to the new compatibility conditions of the new GBER.
How CMS can assist you
CMS has the widest geographical coverage and the largest team of State aid experts in Europe. Our experts have in-depth expertise in setting up aid schemes and advising on the award of individual aid, whether for public authorities or aid recipients.
Please feel free to consult our brochure to find the CMS contact in your jurisdiction.
Below is a link to the CMS expert guide on state aid:
