Revision of the Rescue and Restructuring Guidelines

The European Association of Guarantee Institutions (AECM) welcomes the European Commissions call for evidence on the revision of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty.

1.Clarification on the treatment of loans granted under the GBER regime. Further clarification would be welcome regarding the treatment of loans originally granted under the General Block Exemption Regulation (GBER) framework, which subsequently encounter financial difficulties and require restructuring.

The Swedish Government welcomes the Commissions initiative to review the Rescue and Restructuring Guidelines. The guidelines need to be simplified to reduce unnecessary administrative burden for beneficiaries and public authorities.

The Guidelines give a list of requirements which specify a 'common interest' under section 3.1. The criteria mentioned are of social nature and related to market failures. However, to enable the implementation of the Clean Industrial Deal, this common interest urgently has to be updated with sustainability criteria.

Europes innovation economy is being held back by rules built for another era. The current Undertakings in Difficulty test treats high-growth, equity-financed startups as if they were failing companies excluding them from support schemes they were meant to benefit from. This revision is not a technical update; its a competitiveness test. Startups are loss-making by design they invest before they profit.

Guarantee banks grant performance guarantees and guarantees for funding promising projects launched by small and medium-sized companies working in industry or the professions. The securities granted by guarantee banks provide full cover for all of the house banks and reduce the risk capital requirement for credit institutions.

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Oost NL is the regional development agency for the eastern part of the Netherlands. We invest in innovative start-ups and scale-ups, often together with private co-investors and using regional, national and European funding.

The Czech Startup Association welcomes the Commissions decision to adapt the Rescue & Restructuring Guidelines and, in particular, to reconsider how the undertaking in difficulty (UiD) concept applies to startups and scaleups. The current framework was designed around debt-financed, asset-heavy firms.

As business developer of a cooperative of 60 life sciences & medtech businesses in North-Netherlands, there have been numerous occasions where I stumbled accross startup members that were not able to acquire funding for the development and validation of their innovation, because they were considered "Undertaking in Difficulties" according to the EU Commissions definition.

Europe has always been a continent of pioneersturning challenges into opportunities and building a future on knowledge, courage, and collaboration. Our leadership in innovation is no coincidence; its the result of decades of smart investment and bold choices.

Ekwadraat is a consultancy firm with over twenty years of experience in the renewable energy sector. In 2024 and 2025, it encountered multiple subsidy applications rejected solely due to the Undertaking in Difficulty (UiD/OiM) assessment, despite the projects being technically and economically sound. The OiM definition is intended to prevent public funds from supporting structurally failing companies.

The underlying problem: The EU definition of ‘firm in difficulty’ (UiS) wrongly blocks healthy start-ups and project companies (SPVs) that are crucial for the Green Deal, as static balance sheet rules ignore their real financial reality (e.g. capital reserves, secured cash flows). Requests: 1. Recognise capital reserves (Agios) and subordinated loans as own funds. 2.

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We develop hardware technology and services for large scale renewable energy, in the new asset class of offshore solar. Being a worldwide leader and thereby the expert, we are invited to many consortia that want to co-develop products, services, and research the technology and the industry.

Ms, Most medical implant start-up companies will not generate a turnover within 7 to 10 years with new innovative products due to all legitimate but complex regulations. Within these years, a company depends on loans and investments. Typically, the Seed, Series A investment round is preceded by a bridge loan.

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ALLRAIL the Alliance of Rail New Entrants represents independent, non-incumbent passenger rail undertakings across Europe. Our members are predominantly privately owned companies competing both in commercial markets under the Open Access (OA) framework and in competitively tendered Public Service Obligation (PSO) markets.

CAN Europe welcomes the possibility to contribute to the call for evidence on the revision of rescue and restructuring guidelines (RRG). Our submission mostly focuses on guardrails and principles that should be kept in mind in case the steel sector would be added to the scope of the RRG, but we strongly suggest that those conditions would also be applied across the board for all sectors potentially benefitting from…

Ways to improve the definition of “firm in difficulty” cyclical nature: It might be appropriate to include a cyclical dimension in the definition. Some firms have their profitability concentrated over a specific period (linked to demand or production cycle), which could unfairly exclude them from certain aid.

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We support various companies in different sectors with their financing issues (usually via public funding). Our experience is that many companies are wrongly classified as companies in financial difficulty due to the formula used. In practice, these companies can survive for years relatively easily with the liquid assets they have/receive, but because of the calculation used, they do not pass the test.

The current EU funding framework supports startups but often limits access for scaleups, especially in deep-tech sectors where long development cycles and capital-intensive industrialization are the norm. The Undertakings in Difficulty rule, which classifies companies based on accumulated losses relative to share capital, does not adequately reflect the financial realities of such companies.

The Northern Netherlands Development Agency (NOM) welcomes the revision of the Rescue & Restructuring Guidelines. However, we wish to highlight a significant barrier in the current framework: the definition of a company in difficulty disproportionately affects innovative startups and scale-ups that are crucial for achieving the EUs strategic objectives in areas such as sustainability, health, digitalisation, and…

As part of a large industrial organisation, we see that many SME partners with whom we collaborate in innovative (EU-) funded projects are unable to participate due to the current definition of undertakings in difficulty. This definition is essentially a balance-sheet exercise and does not account for expected incoming funding or available risk capital.

European promotional banks carry out targeted promotional measures on behalf of their owners central and regional governments and municipalities. National, regional, and often additional European funding is used for this purpose. European state aid rules are of essential importance in this context.

BOM Venture Development & Investments, backed by the Province of Noord-Brabant and the Dutch Ministry of Economic Affairs, provides early-stage venture capital to innovative start-ups and scale-ups. In our role as a venture capital investor, we frequently encounter the structural issue of the current EU definition of an undertaking in difficulty (UiD).

Wageningen Research being part of Wageningen University and Research WUR calls on the European Commission to urgently revise the EU definition of Undertaking in difficulty (UID) as set out in Article 2(18) of the General Block Exemption Regulation (GBER). The existing definition, designed in response to the 2008 financial crisis, is outdated and unsuited to Europes innovation economy.

Natures Principles acknowledges the blocking of capital for innovation coming from start-ups/scale-ups. We see the following problem and possible solutions Importance and Urgency The chemical industry appreciates the attention that start-ups and scale-ups receive from the European Commission, but notes that subsidies intended for innovation often fail to reach the right parties due to the undertaking in difficulty…

Why the UID Definition Needs to Be Changed The Case of LionVolt Europe has made innovation a cornerstone of its industrial and sustainability agenda. Yet, the current definition of Undertaking in Difficulty (UID) penalizes exactly the type of companies that Europe needs most: investor-funded, pre-revenue industrial start-ups working on breakthrough technologies.

The current EU definition of Undertaking in difficulty reflects a post-crisis perspective that is no longer compatible with Europes innovation ambitions. Without urgent reform, Europe risks excluding precisely the companies that will deliver its next generation of technological breakthroughs.

Deep-tech en kapitaalintensieve start-ups zoals Back to Battery hebben structureel last van beperkte toegang tot risicokapitaal, omdat zij vroeg grote investeringen moeten doen in apparatuur, pilots en validatie, terwijl commerciële opbrengsten pas jaren later volgen.

For companies like us, setting up production facilities in Europe, the difficulties we are suffering are: + Small finance options for CAPEX. Bank finance is possible once customer demand is clear. But this a chicken and egg problem, and we need to setup facilities ahead of customer compromise. + Need to compete with ASIA.

The reason for this poll is overly clear - the 'OiM toets' excludes those companies who need government support the most and are perfectly financially sound. Pre-revenue companies who managed to secure substantial venture capital funding based on their wonderful track record, idea, team, and progress are the cornerstone for European growth, as they go through venture capital funding rounds.

The OIM test, aimed at assessing financial difficulties of companies to determine eligibility for participation in funded projects, presents significant challenges for start-ups, SMEs, and technology developers. Given that the OIM test does not apply to companies younger than three years, many innovative entities legally and commonly establish new limited companies to circumvent this requirement.

Innovative companies often experience planned losses during their early stages of development, due to their high investment in R & D, talent uptake and market validation. However, many of them maintain an adequate liquidity position, have private funding and demonstrate potential growth.

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As a deep-tech startup developing breakthrough innovation in foodtech multifunctional ingredient solutions, we have repeatedly faced the unintended consequences of the current undertaking in difficulty (UiD) definition.

Dears, I work as fellow for Trinseo, a medium sized petrochemical company with bold aspirations and maturing plans to pivot towards renewable feedstocks based on plastic waste for our products ranging from Acrylics, polystyrene, ABS and Polycarbonate.

Synova is a company that aims to commercialize a technology for the chemical recycling of plastics. Our technology is appreciated by the market for its commercial and technical features. Current challenge is to realize a first of a kind project. This requires the development of a project and consequent realization of the project. This all requires significant funding.

The current legislation on Company in Difficulties hinders the rapid development of start-ups such as Butter Bridge because they are complex processes that require long development time and are capital-intensive. We support regulatory adjustments to ease the OIM.

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The regulation of companies in difficulty should be adapted and preferably simplified so that the startups and scale-ups discussed have better access to grant instruments intended precisely for this stage in the innovation chain. Several avenues of solution can be envisaged under Article 2 (18). We call for a solution path to be developed as a matter of urgency. We have taken note of the following suggestions: 1.

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Zabala INNOVATION, an international consultant dealing with the management of public aid and tax incentives since 1986, and which has managed, together with its clients, more than 6.900 M in public aid over the last 5 years.

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DOPS Recycling Technologies as small company in the development of new technologies appreciates the effort being made about the definition undertaking in difficulty. Attached you will find a position paper about this topic with several recommendations.

To ensure that start-ups and scale-ups can continue to innovate with the help of subsidies, we propose five recommendations for reconsidering the definition of undertaking in difficulty in the Clean Industrial Deal State Aid Framework (CISAF) and General Block Exemption Regulation (GBER): 1. Abandon the equity/capital ratio and work with a positive sum of equity and quasi-equity. 2.

We express our urgent concern over the outdated UID definition under the General Block Exemption Regulation (GBER), which unintentionally excludes financially viable but R&D-intensive companies from accessing innovation-related state aid.

The VNCI appreciates the attention that start-ups and scale-ups receive from the European Commission, but notes that subsidies intended for innovation often fail to reach the right parties due to the undertaking in difficulty assessment.

OIMs are a significant obstacle in my line of work. As a programmanager Innovative Economics at the provincial government of South Holland (NL), it is my daily work to empower innovative companies - mostly SME's - to innovate, create new products, services or new processes.

The current rules for a company in financial difficulty is not suitable for deep tech startups. R&D innovation often takes a long time with a lot of investment before the results are market-ready. The three year exemption for this kind of company is too short.

As the Federal Association of Public Banks of Germany, VÖB, we represent the interests of the 19 German promotional banks, which provide a nationwide and regional link between politics, administration and the economy. The German promotional banks implement targeted support measures on behalf of their owners, the Federal Government and the Länder.

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ETB Global is a deep-tech company developing a process to convert bio-ethanol into sustainable butadiene and other C4 molecules a key enabler of Europes Green Industrial Deal and chemical resilience. We support the VNCI position and the European Commissions effort to modernise the undertaking in difficulty (UiD) definition.

The Association for Steward-Ownership (Stiftung Verantwortungseigentum e.V.) represents, promotes and advances the concept of steward-ownership from a German perspective. We welcome the consultation process on the Rescue and Restructuring Guidelines (RRG), have filled out the questionnaire and would additionally like to provide remarks, mainly aimed at harmonising the UiD definition in favour of the EU market and EU…

The biobased start-up company Relement highlights a critical flaw in the EUs subsidy framework: the current definition of undertaking in difficulty (UID) unintentionally excludes many innovative start-ups and scale-ups from receiving financial support.

TNO welcomes the Commissions initiative to revise the definition of undertaking in difficulty (UID), as currently formulated in Article 2 (18) of the GBER, and the Rescue and Restructuring Guidelines. The current definition Unintentionally excludes innovative deeptech startups and scale-ups from access to EU state aid under the GBER safe harbour.

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The current EU definition of Undertaking in difficulty reflects a post-crisis perspective that is no longer compatible with Europes innovation ambitions. Without urgent reform, Europe risks excluding precisely the companies that will deliver its next generation of technological breakthroughs.

FI Group, an international consultant specialising in public R & D & I financing, with more than 25 years of experience accompanying thousands of European companies in accessing aid and incentives, considers the revision of the Rescue and Restructuring Guidelines as an opportunity to update a framework that has been disadjusted from the current economic and industrial reality.

Filed in Spanish · English published by the European Commission

The current EU Undertaking in Difficulty (UID) rules are holding back innovation in Europe. They were built for a post-crisis financial world, not for todays deep-tech companies that need time, capital, and patience to build breakthrough technologies. These businesses often spend years, sometimes a decade or more, developing complex products before seeing revenue.

We are a consultancy that supports startups in fundraising in various startup environments such as YES!Delft and PLNT. It is very difficult to raise early-stage funds in the Netherlands, and the government has made various instruments to support this: POC-loans, Innovation Credit, Rabo Innovation Loan, etc.

As a European startup, we strongly urge the European Commission to reconsider the current definition and application of the Undertaking in Difficulty (UiD) status. While the intent behind UiD rules to prevent misuse of public funds and ensure fair competition is understandable, their current formulation inadvertently penalizes startups and undermines the EUs innovation ecosystem.

The current definition of an undertaking in difficulty (UiD) under the GBER no longer fits the financing reality of R&D-intensive and capital-heavy companies that follow long technology development cycles. In sectors such as deep tech, life sciences, chemistry and advanced manufacturing, sustained R&D outlays and the accounting treatment of goodwill after acquisitions can produce negative equity (or negative other…

The Confederation of Swedish Enterprise welcomes the Commissions review of the Rescue and restructuring guidelines for state aid. In summary, we would like to highlight the following recommendations: 1. We recommend that the steel sector continues to be excluded from the guidelines. 2.

As senior program manager at ZonMw, the largest governmental funder of (bio)medical and healthcare-related research in The Netherlands, I am well familiar with this issue and recognise it as a serious problem. ZonMw regularly provides funding for companies or public-private partnerships; yet, the current system sometimes leads to situations where an innovative start-up, that is an excellent and financially sound…

The current legal framework needs to be modified to avoid its pernicious effects on the ability of companies that develop innovative technologies, start-ups and scale-ups, to gain access to national public financing in Europe.

The core of the problem is that the innovation of key technologies, by definition, take more than three years. 10 tot 15 years is more likely. And so, young companies (start-up/scale ups) as well as SME's in general have enormous challenges to finance such routes. Current State Aid law interpretation (UiD) create an unlevel playing field for these young business & SME's.

Mentorday and DYRECTO ask the European Commission to amend the Rescue and Restructuring Guidelines to exclude innovative startups and scaleups from the definition of a firm in difficulty when they experience temporary financial stress specific to their model.

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On the possibility of excluding certain startups and scaleups from the scope of the definition of a firm in difficulty in order for these companies to benefit from other types of State aid, if they are not at risk of bankruptcy... I believe that this point is key to enabling a favourable and timely environment for these companies to be sustainable on their own.

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While the exemption is intended to prevent the automatic classification of young companies as undertakings in difficulty under Article 2(18) of the General Block Exemption Regulation (GBER), it does not address the full complexity of early-stage business realitiesparticularly in capital-intensive and research-driven sectors such as biotechnology, clean technology, and deep tech.

My experience on the ground shows that the current guidelines do not sufficiently reflect the diversity of existing business models, especially those of rural SMEs and innovative start-ups. The financial criteria used may mistakenly classify certain undertakings as ‘in difficulty’, which in reality follow long-term investment models, requiring significant capital in the growth phase.

Filed in French · English published by the European Commission

For start-ups, and especially those facing a strong need for initial investment, the problem is that their economic model based on initial growth and losses can artificially bring them into the category of “firm in difficulty”, resulting in a loss of access to public support and credibility vis-à-vis investors. Specifically: — Exclusion of public funding.

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