IRELAND South MEP Billy Kelleher said proposed changes to the EU’s State Aid Rules could be a game-changer in speeding up investments in housing, agriculture, fisheries, the environment and supporting Small and Medium Sized Enterprises (SMEs).

Kelleher, a member of the Economic and Monetary Affairs (ECON) Committee, commented after the European Commission launched a public consultation on a simpler and more streamlined General Block Exemption Regulation (GBER).

‘At present, the GBER is quite restrictive in terms of how, where and when State Aid can be allowed, and whether pre-approval from the Commission is required,’ he said.

‘This new version will align the GBER with current social, market and technological conditions. The clear objective of this revision is to reduce the administrative burden and simplify legislation.‘The EU has already adopted clear goal of reducing red tape for SMEs by 35% and in general for everyone by 25%.’

Kelleher said while the EU is often regarded as being slow at making decisions, by removing the requirement for pre-approval for certain interventions, governments will be able to respond more effectively.

He continued: ‘The broadening of the general block exemption will mean that the government can take proactive and decisive action to support in economic sectors that are particularly impacted by the green and digital transitions as well as the energy crisis. It would also allow increased support to innovative new start-ups and scale-ups, previously excluded from the exemption, or to young farmers looking to make their farms more sustainable.’

Changes are also being proposed to increase funding support for research and development as well as investments in renewable energy and energy infrastructure, including grids which are currently under pressure in terms of capacity.

One key area where the rule changes will make a difference is housing, according to MEP Kelleher.

He said: ‘While recent changes have relaxed the rules around state aid for housing so that governments can invest in affordable and social housing, the latest proposal would allow governments to top-up this support to cover costs for energy-efficiency measures.‘It is essential that Ireland takes this opportunity seriously and actively engages with this consultation process. Member states and any other interested parties have until April 23rd 2026 to submit their comments and observations.

‘Of course, there still must be fairness in how State Aid rules are implemented. We cannot allow a free for all situation where very-rich countries such as Germany can use State-Aid flexibilities to game the system and attract investment which has previously happened.

‘I believe a balance can be struck that will speed up decision making, get rid of blockages in key sectors such as housing, energy and SMEs while retaining a level playing field.’