On 22 August 2025, the European Commission launched a public consultation with the aim of reviewing the guidelines on state aid for rescue and restructuring granted to non-financial undertakings in difficulty. This initiative seeks to adapt the rules, originally adopted in 2014, to market changes and the current geopolitical context, as well as to clarify the definition of an “undertaking in difficulty”, which was identified as ambiguous in a quality check published in 2020.
The current guidelines, which expire on 31 December 2025, will be extended until 31 December 2026 in order to allow for an in-depth review. The Commission stresses the need to adjust the rules so as to reflect new economic realities and to ensure that state aid is applied effectively and fairly.
One of the Commission’s main objectives is the reformulation of the concept of an “undertaking in difficulty”. The current wording has led to divergent interpretations, enabling undertakings that are not genuinely in difficulty to benefit from aid, such as start-ups (companies in innovative sectors which incur high expenses in their early stages). The Commission proposes a clearer and more objective definition, intended to identify undertakings at imminent risk of ceasing operations.
Particular emphasis is placed on the special case of the European steel sector – which had been excluded from the scope of the Guidelines in 2014 owing to global and European overcapacity – this sector was analysed in the Action Plan for Steel and Metals, adopted by the Commission on 19 March 2025, where structural challenges to its competitiveness were identified.
In this context, the inclusion of the steel sector within the scope of the forthcoming Guidelines on rescue and restructuring aid may provide a contribution to the EU steel industry.
The public consultation will remain open until 14 November 2025, enabling undertakings, national authorities and other interested parties to submit suggestions and views. The European Commission expects to present this initiative in the fourth quarter of 2026.
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