Commission seeks input on review of state aid—to help steel and start-ups

Brussels – The European Commission today launched a
call for evidence and a public consultation 

to gather input on the scope and content of the revision of the guidelines on State aid for rescuing and restructuring non-financial firms in difficulty (“rescue and restructuring guidelines’). The collected contributions will be used to update the guidelines to ensure that they continue to be adequate to achieve their objectives. 

A Commission note explains that the Rescue and Restructuring Guidelines set out the conditions under which aid to non-financial firms in difficulty may be considered in line with EU rules, in particular on the basis of Article 107(3)(c) of the Treaty on the Functioning of the European Union (‘TFEU’). To stay up-to-date, the Commission is launching a revision process of the Rescue and Restructuring Guidelines that entered into force in 2014. The proposed revision considers:

• expanding the scope of the Rescue and Restructuring Guidelines to include the steel sector, which is currently excluded;
• amending the “undertaking in difficulty” (UiD) definition regarding certain types of innovative start-ups that have a specific growth model, which allows them to be eligible for aid under other State aid instruments;
• clarifying certain parts of the “undertaking in difficulty” definition, in particular the concept of “own funds” and its relationship with the equity and solvency of UiDs;
• making technical changes following several EU Courts judgments.

The purpose of the call for evidence and the public consultation is to gather information and views from stakeholders on the planned revision. The feedback received will help the Commission identify the necessary changes and better define the new rules. 

The deadline for responding to the call for evidence and the public consultation questionnaire is 14 November 2025. 

The Rescue and Restructuring Guidelines came into force in 2014. As rescue and restructuring aid is among the most distorting forms of state aid, the guidelines aim to ensure that public funding is targeted where it is most needed and that investors in ailing firms bear their fair share of restructuring costs, rather than leaving the burden to taxpayers. In 2020, the Commission evaluated the current rescue and restructuring guidelines under the state aid verification budget. The evaluation showed that the current guidelines are fit for purpose, but that clarification and guidance on specific aspects might be needed. Furthermore, since the adoption of the guidelines in 2014, the market and geopolitical environment have changed. European companies face different challenges than they did ten years ago. 

More information and next steps 

The Commission will analyse the responses to the public consultation and publish a summary of the main points and conclusions on the Commission’s “Have Your Say” portal. The Commission will also publish the contributions in the language in which they were submitted. 

Background 

Under the TFEU, State aid may be considered compatible with the internal market if it facilitates the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest. The Rescue and Restructuring Guidelines set out the conditions under which State aid for rescuing and restructuring non-financial firms in difficulty may be considered compatible with the TFEU. Currently, all sectors are eligible for aid under the Guidelines, with the exception of the coal and steel sector and the financial sector. The Guidelines provide for three types of aid: rescue aid, restructuring aid, and temporary restructuring aid. To determine whether the Guidelines are applicable, they introduce the notion of undertaking in difficulty (IuD). Only companies that meet the criteria of the definition of IuD are eligible for aid under the guidelines.