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The EU member states spent 90% of their state aid facilities (public expenditures) in 2024 to support the European-wide integration-developmental priorities. While overall spending dropped to €168.23 billion in 2024 from €203.35 billion in 2023, the EU states channeled more funds towards supporting key EU projects, such as environmental protection, energy and research, innovation and regional development, etc. At the same time, some other crisis-aid measures continued to be phase out.
Background
The notion of the “state aid” in the EU-27 refers to public funds or advantages (like grants, tax breaks, etc.) given to specific companies, which is -generally- prohibited under the EU law as it distorts competition in the Single Market. However, still the “state aid” is the notion given to a subsidy or any other aid provided by a government that might distort competition.
Some “public aid” can be permitted if justified for common goals like R&D, green transition, and/or crisis relief, with the European Commission enforcing rules and approving exceptions; which was especially vital during recent energy and pandemic crises. While traditionally strict, these rules have loosened regulatory burden for strategic economic sectors, reflecting a shift towards enabling industrial policy and supporting key EU-wide transitions.
State aid rules have since the Treaty of Rome (1957) been the basic of the European efforts to establish a level playing field on the Single Market.
More on the Treaty in: https://www.britannica.com/event/Treaty-of-Rome
To avert unfair competition within the European Single Market, the member states’ national governments have generally been prohibited from granting state aid. However, in recent years, state aid has been normalized as a key crisis management tool, emerging as a strategic instrument for achieving long-term industrial policy.
Reference to: https://thinkeuropa.dk/en/brief/2025-08-towards-a-new-state-aid-regime
As to the present state aid’s account – according to the present European Commission’s 2025 State aid Scoreboard, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition underlined that the environmental protection and energy savings remained at the core of State aid expenditure in 2024, alongside research and development, confirming the trend seen in 2023. This shows that the EU states continue to support the clean transition, ensuring that the benefits of decarbonisation and digital innovation reach households and businesses across Europe. State aid objectives have been grouped in the scoreboard into 19 socio-economic categories.
Among major EU “states’ aid” expenditure-countries, (in billions of euros) are: Germany with 41,3; France with 34,2; Italy -18,3; Spain-15,8; Poland- 9,8; Belgium- 6,9, etc.
Source: https://competition-policy.ec.europa.eu/state-aid/scoreboard/scoreboard-state-aid-data_en
Final accounts
Based on the EU member states’ reports, the following positions dominated in expenditures:
= Environmental protection and energy savings remains the main focus among key state aid objectives, accounting for €68.82 billion or 45% of total state aid for EU priorities.
= In a strategic shift towards sustainability, the EU states increased focus on energy aid. Out of the total aid spent for environmental protection and energy savings, state aid for decarbonisation efforts totaled €30.45 billion; aid for energy production and infrastructure modernisation reached €27.31 billion in 2024.
= The states channeled €3.84 billion to support the shift from crisis-related emergency measures toward sustainable investments to accelerate the transition to a net-zero emission economy under the Temporary Crisis and Transition Framework, TCTF by focusing on renewable energy rollout, industrial decarbonization, and strategic sector investments. Two new semiconductor manufacturing facilities projects received state aid, with €223.87 million paid out in 2023 and €352.85 million in 2024.
More on the 2025 edition of the State aid Scoreboard in: https://competition-policy.ec.europa.eu/state-aid/scoreboard_en
= The state aid for research, development and innovation totaled €14.16 billion, while the member states granted €13.42 billion in aid for regional development. The expenditure for important projects of common European interest (IPCEIs) was €2.62 billion in 2024.
= State aid also contributed €4.59 billion to the rollout of broadband, which supports EU digital growth.
= Aid to agriculture, forestry, and rural areas amounted to €10.43 billion, while fisheries and aquaculture received €212.87 million in 2024.
= Measures under the General Block Exemption Regulation (‘GBER’) comprised 69% of all active state aid measures, reflecting a continued preference for block exemptions.
More on GBER in: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0651-20230701
Combined with the Agricultural Block Exemption Regulation (‘ABER’) and the Fishery Block Exemption Regulation (‘FIBER’), these measures together accounted for 87% of all active state aid measures and 93% of new measures. Due to their focus on smaller aid measures, these represented only 36% of the total expenditure.
Source: https://competition-policy.ec.europa.eu/state-aid/scoreboard/scoreboard-state-aid-data_en
Two new semiconductor manufacturing facilities projects received State aid, with €223.87 million paid out in 2023 and €352.85 million in 2024. State aid also contributed €4.59 billion to the rollout of broadband, which supports EU digital growth.
Total crisis aid expenditure decreased significantly to €16.33 billion, a reduction of 67% compared to the previous year, with aid focused predominantly on addressing impacts of the Russia-Ukrainian military conflict.
General reference: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_67
thanks for this