State aid is not merely a technical or legal issue, but rather a policy instrument that contributes to the development, competitiveness and cohesion of the European Union, Commissioner for State Aid Control, Stella Michaelidou, said on Tuesday following the meeting of the State Aid Working Group which was held in Nicosia in the framework of the Cyprus Presidency of the Council of the EU.

Speaking at a press conference after the meeting, which took place in Cyprus for the first time following the Commissioner’s initiative, Michaelidou stressed that the need for continuous cooperation between Member States and the European Commission remains a top priority, ensuring that State aid rules remain effective, modern and adapted to emerging economic and social challenges.

“Today’s meeting confirms our shared commitment to working together for a stronger and more resilient European economy” she added.

Michaelidou said that participants examined a number of important issues currently facing all Member States, including recent developments in European Union case law relating to State aid, the core principle of incentive, the implementation of the new de minimis register, and amendments to the State aid framework under the General Block Exemption Regulation (GBER), which provides flexibility and enables the swift approval of State aid measures at national level.

She also noted that Cyprus highlighted during the discussions, through distinguished speaker Phedon Nicolaides, recent developments in case law concerning the concept of economic activity, a subject that lies at the heart of the application of State aid rules and influences the way in which many public interventions are assessed.

The Commissioner said that hosting this meeting provided an important opportunity for Cyprus to showcase its active role in European decision-making processes and, at the same time, strengthen cooperation with other Member States and the European Commission in a field that directly affects economic growth and competitiveness.

Referring to the participation of representatives from Member States, she said that more than 50 delegates attended, adding that the presence of European Commission officials was both significant and symbolic. “This demonstrates the importance of the institution and the close cooperation required for the proper application of State aid rules throughout the European Union,” she said.

She further noted that, as is the case for all Member States, Cyprus is required to implement an ever-evolving European framework and that the country’s close cooperation with the European Commission and other Member States enables it to address these challenges effectively and ensure the correct application of the rules.

Source: CNA(ΚΥΠΕ)