Executive Vice-President Margrethe Ribera has announced that the European Commission intends to revise the General Block Exemption Regulation (GBER) to allow innovative start-ups to receive all types of state aid during their early growth phase, addressing concerns that the current definition of an undertaking in difficulty (UiD) hampers scale-ups. The answer, published on 10 July 2026, responds to a parliamentary question by Renew MEP Anouk Van Brug, who argued that the UiD definition blocks innovative companies from accessing public aid needed for R&D and market entry.
Ribera confirmed that the Commission is reviewing the GBER with the aim of simplification, and that it has assessed feedback from a public consultation on the topic. The revision will enable innovative start-ups to benefit from all aid types under the GBER, including environmental and social aid, and will clarify the notion of equity to include financial instruments such as preferred shares, silent participations, and convertible bonds. The Commission aims to adopt the revised GBER in December 2026.
Currently, the GBER excludes aid to UiDs to prevent keeping inefficient companies on the market, but exceptions exist: SMEs up to three years may receive all aid types, start-ups up to five years may receive start-up aid, and unlisted SMEs up to ten years may receive risk finance aid. The revision intends to extend these flexibilities for innovative companies.
The announcement signals a policy orientation toward supporting innovation and growth, balancing competition concerns with the need to foster EU strategic autonomy. The concrete proposal includes a timeline and specific changes to equity definitions, but the exact scope of exemptions for scale-ups remains to be detailed in the final text. The revision is expected to impact innovative start-ups and scale-ups positively by easing access to state aid, while potentially increasing competitive distortions for non-innovative firms. National authorities will need to adapt their aid schemes, and the Commission will monitor compliance with the new rules.