SGEI package
In 2012, a set of specific State aid rules for services of general economic interest (“SGEI”) – known as “the 2012 SGEI Package” – entered into force. The SGEI package consists of an SGEI Communication; an SGEI Decision; an SGEI Framework; and an SGEI de minimis Regulation.
The Commission revised the SGEI de minimis regulation on 13 December 2023 and the SGEI Decision on 19 December 2025.
The Communication clarifies key concepts of State aid relevant for SGEIs, and the de minimis Regulation establishes a threshold below which compensation is deemed no aid.
The Decision and the Framework specify the conditions under which State aid in the form of public service compensation is compatible with the Treaty on the Functioning of the European Union. Indeed, the SGEI Decision provides the conditions under which the Member States are exempted from the obligation to notify public service compensation to the Commission, while the SGEI Framework sets out the rules for assessing SGEI compensations that must be notified.
The revised SGEI package contains the following:
- Communication from the Commission on the application of the European Union State aid rules to compensation granted for the provision of services of general economic interest Official Journal C8, 11.01.2012, p. 4-14.
- Commission Regulation (EU) 2023/2832 (OJ L, 2023/2832, 15.12.2023) of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest. This Regulation entered into force on 1 January 2024.
- Commission Decision (EU) 2025/2630 of 16 December 2025 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest and repealing Decision 2012/21/EU, C/2025/8820 Official Journal L, 2025/2630, 19.12.2025. This Decision entered into force on 8 January 2026.
- Communication from the Commission, European Union framework for State aid in the form of public service compensation (2011) Official Journal C8, 11.01.2012, p. 15-22.
SGEI Guide
The Guide to the application of the European Union rules on state aid, public procurement and the internal market to services of general economic interest, and in particular to social services of general interest of 2013 is an important tool that interprets the SGEI package in the form of FAQs.
This guide is from 2013 and predates the review of the SGEI de minimis in 2023, the SGEI Decision in 2025 and the review of public procurement rules in 2014. As a result, it is partially outdated but still useful to interpret a number of concepts.
Additional instruments
In addition to the above, the below instruments could be of great help for assessing the compliance of public service compensation with the SGEI rules.
- The Commission Directive of 16 November 2006 on the transparency of financial relations between Member States and public undertakings as well as on financial transparency within certain undertakings (codified version).
- The swap rate proxies for the purpose of the SGEI Decision and SGEI Framework
SGEI Evaluation of 2019 and review of the SGEI de minimis and of the SGEI Decision
In June 2019, the services of DG Competition started to evaluate the SGEI package to verify to which extent the rules applicable to health and social services were still appropriate and to assess how the SGEI de minimis Regulation has been applied.
The Commission concluded in a Staff Working Document of 1 December 2022 that the 2012 SGEI Package as regards health and social services was broadly fit for purpose. However, it also concluded that a clarification of certain concepts was desirable. In addition, the evaluation also showed that an alignment of the SGEI de minimis Regulation with the general de minimis Regulation and an adjustment of the SGEI de minimis ceiling was needed.
As a result of the evaluation, the Commission reviewed the SGEI de minimis Regulation in December 2023. The ceiling was increased from EUR 500 000 to EUR 750 000 and the Regulation was aligned with the General de minimis Regulation, in particular as regard the mandatory central register.
Moreover, the SGEI Decision has been modified on 16 December 2025, with the primary aim of clarifying the concept of social housing and to offer Member States an option to support affordable housing in a faster and simpler way. This initiative contributes to the Commission’s efforts to address European citizens' housing needs and constitutes one component of the European Affordable Housing Plan. The revision of the SGEI rules aims to address challenges related to housing affordability that go beyond social housing. To that end, the updated State aid rules facilitate investments in affordable housing at national, regional and local level. In addition to the changes on housing, additional changes of the SGEI Decision were made to simplify, update and clarify several elements in the SGEI Decision. In particular, the ceiling of the exemption was increased from EUR 15 million to EUR 20 million in order to cater for inflation and the administrative burden has been reduced in particular due to changes on the reporting obligations and the control of overcompensation.
More information on the review of the SGEI Decision and on affordable housing can be find at the below links:
- SGEI revised Decision (available in all EU languages)
- Q&A document
- Press release
- Factsheet
- European Commission website on affordable housing