General criteria for business subsidies on national level
Business subsidies are aid and interest subsidies granted to economic activity as well as loans, guarantees, equity financing, tax subsidies and other arrangements that contain economic benefits and that are granted under an aid scheme or as individual aid outside an aid scheme.
Supporting economic activity is business subsidy regardless of the organisational model and method of funding.
The general criteria for business subsidies on national level was renewed as of 1 July 2016 (HE 22/2016). The general criteria for business subsidies are:
- A clear economic or societal objective. If the subsidy has an economic objective (efficiency, reform, competitiveness, strengthening the preconditions for growth) the subsidy must also be directed to purposes the aim of which is to eliminate market failures.
- An appropriate and cost-effective instrument for achieving the objectives.
- Minimal distortive effects on competition.
- Fixed duration
- Incentive effect
- Preconditions for profitable operation
- Impact assessment