Abstract

Commission Regulation No 651/2014 considers public funding of cultural activities as State aid. However, it acknowledges that a number of measures taken by Member States may not constitute aid because the activity is not economic or because trade between Member States is not affected. However it doesn't point out how to distinguish between what is aid and what is not. Nonetheless under article 53 of Regulation No 651 aid for culture and heritage conservation shall be compatible with the internal market if it shall not exceed the difference between the eligible costs and the operating profit of the investment or what is necessary to cover the operating losses. Consequently public funding of cultural activities is almost always compatible under European law. However, according to Italian law, if public authorities do not register the aid in the National State Aid Register, the concession is not effective. It is therefore necessary to state parameters suitable to discern between what is aid and what is not. But the prudence of some risks to lead to more restrictive interpretations than those of the European Commission itself.