Incentive effect. (115) According to section 3.5 of the RAG, regional aid can only be found compatible with the internal market if it has an incentive effect. An incentive effect is present when the aid changes the behaviour of an undertaking in a way that it engages in additional activity contributing to the development of an area which it would not have engaged in without the aid or would only have engaged in such activity in a restricted or different manner or in another location. The aid must not subsidise the costs of an activity that an undertaking would have incurred in any event and must not compensate for the normal business risk of an economic activity.
Incentive effect. 53. In line with point 49 EEAG, a measure has an incentive effect if the aid induces the beneficiary to change his behaviour towards reaching the objective of common interest which he would not do without the aid.