The European Commission has opened a public consultation on draft new EU rules governing when governments can support struggling non-financial companies, with feedback invited until 4 September 2026.
The draft updates the EU’s Rescue and Restructuring Guidelines, first adopted in 2014, which set out when “State aid” — government support such as grants, loans or guarantees — may be allowed under EU competition rules, the Commission informed on Friday.
One proposed change would bring the steel sector within the scope of the guidelines, after being excluded alongside coal and steel under the current version
Another proposal would remove certain types of innovative start-ups from part of the “undertaking in difficulty” test — the definition used to decide whether a company qualifies for this support — because early accumulated losses are not uncommon for innovative firms.
The Commission also proposes to count some hybrid financial instruments when assessing a company’s equity for the purposes of deciding whether it is in difficulty.
Timeline for the new rules
The consultation follows a call for evidence and an initial public consultation launched in August 2025, with the responses used to inform the draft text now published, the Commission said.
The draft will also be discussed at a meeting between the Commission and EU member states.
The revised guidelines are planned to be adopted by the end of 2026, ahead of the current rules expiring on 31 December 2026.
“The new Rescue and Restructuring Guidelines we propose today will adapt the rules to our current economic environment, while keeping in mind that this kind of aid strongly distorts competition in the internal market,” stated Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just and Competitive Transition.
