THE APPROVED REGIONAL AID MAP WILL FACILITATE THE NATIONAL ECONOMIC DEVELOPMENT

The Government of the Republic of Lithuania passed the resolution whereby it approved the Regional aid map. The Regional aid map was developed in accordance with the provisions of the Treaty establishing the European Community providing for a possibility to grant certain state aid.

Article 87(1)(a) of the Treaty establishing the European Community provides for a possibility to grant State aid in order to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment. The Guidelines for national regional aid for 2007–2013 (2006/C 54/08, OJ, 2006, C 54, p. 13) also defines the regions where a GDP per capita is less than 75% of the Community average. Under these principles the entire territory of the Republic of Lithuania qualifies for regional investment aid. The Regional aid map of the Republic of Lithuania for 2007-2013 approved by the Decision of the European Commission K(2006)4959 of 24 October 2006 determines the maximum amounts of permissible regional investment State aid. The adoption of the regional aid map is a prerequisite to ensure the continuity of the regional policy and the structural funds’ funding programmes after 2006, in particular having in mind that the currently effective regional aid map expires on 31 December 2006.

According to the new regional aid map approved by the Government of the Republic of Lithuania the highest regional aid intensity is limited to 50 % of the gross subsidy equivalent, where the regional aid intensity may be increased by 20 percentage points in case of aid to small or micro-enterprises, and by 10 percentage points for medium-sized enterprises. For large-scale investment projects the permissible regional aid intensity is adjusted in accordance with the provisions of item 67 of the Guidelines for national regional aid.