The incentive effect is one of the most critical conditions for the compatibility of State aid with the EU internal market. The incentive effect means that State aid should not be granted for activities in which the beneficiary would, in any case, engage even in the absence of the State aid. If a beneficiary has decided to start a given activity receiving State aid under certain conditions, these conditions should not be changed - especially the amount of the State aid. However, we are living in turbulent times. Europe's economy was hit by the COVID pandemic outbreak, then by the war in Ukraine. All European countries have experienced a drastic price increase and are struggling with high inflation. The policy of the European Green Deal had led to drastic technological change. Many beneficiaries must buy energy and products from sources that were note initially planned. In this situation, the prohibition of changing the conditions of State aid that has already been granted may turn the incentive effect into the ‘disincentive effect’. In this article, we consider how this problem can be avoided.
Keywords: incentive effect, GBER, de minimis