This aid to boost competitiveness will be increased for the period 2022-2027 and will cover up to 35 % of the investment for small companies, 25 % for medium-sized companies and 15 % for large companies in all the islands and municipalities of the Balearic Islands.

According to initial estimates, this improvement in the Balearic Islands could double the number of projects benefiting and increase the volume of aid by 800 %, to 16 million per year, with a subsidised investment of around 80 million.

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Business projects throughout the Balearic Islands will be able to benefit from regional state aid for the new period 2022-2027. The Government of the Balearic Islands has managed to include the entire territory of the autonomous community, for the first time, in the new map of regional aid, as it had demanded from the Ministry of Finance and Public Function when defining the new map before the European Commission.

It also increases the level of aid by five points, both for small and medium-sized enterprises – with aid of up to 35% and 25% of the investment, respectively – and for large companies – with aid of up to 15% of the investment.

This direct aid granted by the Spanish government, which can also be financed with European funds, is an incentive for business investment in the territory, specifically in the areas included for economic promotion, and is aimed at companies that promote investment projects of 900,000 euros or more and that meet a series of requirements established in Royal Decree 899/2007. In particular, incentives are given to projects for the creation of new establishments that give rise to a new business activity, projects that involve the expansion and development of an already established activity or projects for the modernisation of production.

The Government today brought together the main business organisations, CAEB and PIMEB, in a meeting promoted jointly by the Minister of Finance and External Relations, Rosario Sánchez, and the Minister of European Funds, University and Culture, Miquel Company, to explain the new features of regional aid and its scope for the period 2022-2027, which includes the entire territory of the Balearic Islands, as had been demanded during the previous process with the Government of Spain. Applications for aid can now be processed through the Balearic Europe Centre.

The meeting was also attended by the director-general of European Funds, Félix Pablo, and the director-general of Industrial Policy, Antoni Morro, as well as members of the Centre Balears Europa. PIMEB was represented by its president, Jordi Mora, and CAEB was represented by its vice-president, José Antonio Roselló, and secretary-general, Sergio Bertrán.

The main objective of the regional aid in the economic development of the EU areas included in the aid map in order to attract business investment and thus encourage their competitiveness and the creation and maintenance of employment.

The criteria for the application of the previous Community guidelines 2014-2021 limited the Balearic Islands to 57 % of the territory eligible for such aid. The 2014-2021 regional aid map included the Balearic Islands for the first time and now extends its scope to all the municipalities of the archipelago. The new Community Guidelines define the criteria to be met by the areas designated by the member states and the population limits of the EU-27.

740,000 EUROS ON AVERAGE PER PROJECT IN 2017-2021 GRANTS

The new map represents a very significant change with respect to the previous period, since the Balearic Islands – with a GDP per capita of 99.67% of the EU-27 average – will be able to include its entire territory in the new aid map and, in addition, achieve higher maximum intensities of regional investment aid.
ness investment. Specifically, they increase from 10% to 15% for large enterprises and from 20% to 25% for medium-sized enterprises and from 30% to 35% for small enterprises.
This level of aid, and more specifically its maximum aid intensities, increases by five percentage points for the new period 2022-2027, to cover from 15% to 35% of busi

Taking into account the demand for this aid in other regions with a similar productive structure, it is estimated that the impact for the Balearic Islands of including the whole of its territory in this programme will significantly improve opportunities for business investment in the coming years.