Supporting and implementing projects within the framework of the European Economic Area Financial Mechanism and the Norwegian Financial Mechanism requires the application of public aid rules provided that the Beneficiary is an entity running a business activity (we should bear in mind, however, that the Community law defines a business activity in broad terms to be understood as any activity involving an offer of goods and services on a specific market irrespective of the fact whether such an activity is conducted for profit or not).

Pursuant to art. 87 section 1 of the Treaty establishing the European Community, any support granted to entities conducting a business activity is subject to the public aid regulations provided the following premises are jointly met:

• the support is granted by the State or from public funds,
• the entity records a benefit on the terms which are more favourable than those offered on the market,
• the support is selective (preferential for specific entities or for the manufacture of specific goods),
• it may disrupt or disrupts competition, and affects the trade between the EU Member States.

A co-financing of a Beneficiary conducting a business activity, which is jointly fulfilling the above premises, will be regarded as public aid and may be granted on a ‘de minimis aid’ basis provided that it does not exceed a gross amount of EUR 200,000, this amount to include any other de minimis aid received over the past two tax years from different sources and in different forms, subject to art. 63 of the act on the procedure in public aid matters dated 30 April 2004 (Journal of Laws No 123, item 1291 as amended).

All Beneficiaries, including those who did not receive such aid, as well as entities not running any business activity (regardless the legal form) are obliged to provide the FDES with a declaration of de minimis aid received over a period of the past three tax years to date before they submit a co-financing application.