The European Commission is finalising its revision of the General Block Exemption Regulation (GBER), set to enter into force in January 2027. The new regulation aims to simplify State aid rules, reduce administrative burdens and align with evolving economic realities. In its opinion, the European Economic and Social Committee (EESC) places a strong emphasis on ensuring that the GBER actively supports European entrepreneurship and the social economy.

By Giuseppe Guerini

A major step forward for social enterprises

One of the most significant innovations welcomed by the EESC is the long-awaited recognition of social enterprises within the revised GBER framework. This development is fully consistent with the Commission’s Social Economy Action Plan and the Letta report’s recommendations. By explicitly acknowledging social enterprises in the definitions section and as potential beneficiaries of support, the new regulation reflects their specific role in addressing market failures and promoting inclusive growth.

However, the EESC has a critical recommendation: to maximise the potential of this innovation, the definition of ‘social enterprise’ should be aligned precisely with the wording used in the Social Economy Action Plan. This would ensure legal consistency and allow social economy entities to benefit fully from the regulation’s exemptions. Furthermore, the Committee welcomes the explicit recognition of structural ‘market failures’ that affect social enterprises’ access to finance, a persistent barrier to their development.

Supporting disadvantaged workers and work integration

The EESC strongly supports increased provisions for disadvantaged workers and persons with disabilities. To truly foster an inclusive entrepreneurial environment, the Committee proposes amending Article 48 of the Commission’s proposal for the new GBER. Alongside sheltered employment, the article should explicitly include ‘work integration social enterprises’ where at least 30% of permanent employees come from disadvantaged groups. This change would harness the proven potential of social economy actors in job reintegration and aligns with the principles of a social market economy.

Balancing innovation, scale-up, and fair competition

For mainstream entrepreneurship, the EESC sees the revised GBER as striking an appropriate balance between innovation and continuity. The increased use of ‘simplified cost options’ (flat rates and lump sums) is praised for cutting red tape and compliance costs, particularly for SMEs with limited administrative capacity.

Nevertheless, the Committee identifies a critical gap: while the draft GBER remains strong in supporting early-stage R&D, it is weaker in financing technology scale-up, such as pilot plants and first-of-a-kind industrial facilities. To bridge this ‘valley of death’ for innovative enterprises, our opinion recommends creating a specific category or expanding existing ones to finance industrial demonstration projects.

Finally, the opinion insists that State aid must ensure fair competition while protecting quality employment and workers’ rights. It specifically calls on the Commission to re-evaluate measures on share options and warrants (Article 24) to ensure full consistency with national labour legislation and social security rules, grounding entrepreneurship in a framework of social responsibility.