Parliament backs state aid reform to support R&D

Parliament has joined with other stakeholders in backing the Commission’s state aid reforms: less aid to help out ailing industries and more money for R&D and regional development.

The Parliament approved, on 14 February, an own-initiative report drawn up by Gunnar Hökmark (EPP-ED) in response to the Commission’s action plan on state aid reform 2005-2009. The Commission’s action plan, published in June 2005, outlines the guiding principles for a comprehensive reform of state aid rules in 2005-2009. In particular, the plan shows how the Commission aims to simplify state aid rules and target aid towards the promotion of jobs, economic growth and social cohesion. 

The Hökmark’s report underlines the need for flexibility in the state aid system and calls for aid to be targeted at start-ups or new, innovative SMEs. It also supports the adoption of a general block exemption regulation in the area of R&D. In addition, the report  backs the Commission’s proposal to review its guidelines on national regional aid and to invest more in infrastructure and horizontal aid in the EU’s least-developed regions.

The results of the Commission consultation on the reform, published on 9 February 2006, show strong stakeholder support for the Commission’s plan.

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