Public subsidies of „small extent“ are a frequently used "form" of state aid. Funds of such a small extent are not regarded as "state aid" perse. The European Commission, which is the central authority for the notification of public subsidies, considered them to be of negligible significance and unlikely to adversely impact competition on the internal market. De minimis public subsidies do not need to be approved by the central European Authority; they must only be registered in the central register.        

The threshold for regarding public subsidies as de minimis has changed from EUR 200,000 to EUR 300,000 in three years. New rules for calculating the decisive period for inclusion in the de minimis category have been introduced. The method of registering a public subsidy as de minimis has also changed. A classification of economic activities (NACE) now needs to be added.

Legal amendments regarding general public services have been adopted too. The new threshold for considering a general public service to be of "small extent" has changed from EUR 500,000 to EUR 750,000. General public services are highly specific. They are usually supported by the state or by municipalities in public interest. A general public service is one that, without financial support from the state, would likely not have been provided at all or would have been provided at a significantly lower quality. In practice, these are postal services, energy sector services, health care services, public transport services or public broadcasting.      

As all the amendments were adopted only a few weeks ago, the Czech Republic will need time to implement the new rules but must do so no later than 30 June 2024. Some issues still need to be discussed and clarified with the European Commission.

So, what is the current status of de minimis public subsidies in the Czech Republic?

The "old" laws governing de minimis public subsidies are still valid, including decisive time periods, until the Czech Central Register of de minimis public subsidies adjusts to the new legal requirements. The final deadline is 30 June 2024.  

Author: Vladěna Svobodová