Subsidies: Revision of development zones – More room to breathe for your investment projects in Wallonia

Context and change in development areas

In order to revitalize the economic activity of geographical areas strongly affected by unemployment, income or competitiveness problems, the European Commission can recognize these as — Development zones. This status is generally granted over a period of between 5 and 7 years.

The nature of the investment aid (subsidies) that can be obtained as well as the intervention rates in these areas are higher than in the rest of the country, in order to reduce economic inequalities.

In 2022, the European Commission validated a geographical segmentation of these areas supposed to be maintained until 2027. However, on 8/12/2023, the latter validated a modification of the map of development zones taking effect from 01/01/2024 with as a major element, the recognition of Hainaut, in its entirety, as a type a development zone (Orange Zone), i.e. a strongly supported area, like Luxembourg.

For greater clarity, we repeat below the old map of development areas for 2023 (left) and the newly validated map for the period 2024-2027 (right).

Huge consequences for companies located in these new areas of development

By reconsidering its geographical segmentation, the European Commission is offering an unprecedented wave of wind to companies now in development areas.

For large companies located in zone a (Orange), i.e. Luxembourg and Hainaut, they can now apply for a traditional investment grant with a significantly expanded framework. Indeed, in these areas, eligible investments now concern:

• The creation of an establishment;
• Capacity extensions;
• Diversifying products or activities;
• The fundamental change in the production process;

It is therefore a major paradigm shift compared to the highly restrictive framework imposed previously.

For all companies (PMGes) headquartered in Wallonia, this reconsideration of development zones also allows those located in one of them to benefit from an increase of 5% (blue/green zone) or 10% (orange zone) in the intervention rate as part of specific aid for environmental protection.

In order not to miss out on any potential savings, get in touch with our experts to study the eligibility of your future projects as well as to free yourself from the burden of submitting and monitoring these files.