EU extends aid rules for shipyards until 2011
European Union rules governing how governments can support shipyards will remain in place for another three years, the EU's executive said on Thursday.
The state aid rules were introduced in 2004 and are now due to run until Dec. 31, 2011, the European Commission said.
The Commission, which oversees the EU's state aid rules to ensure a level playing field for business within the 27-country bloc, said it wanted more time to study how aid to boost innovation was being used.
"EU shipyards need to innovate, and the innovation aid rules in the framework on state aid for shipbuilding were designed to foster such innovation," European Competition Commissioner Neelie Kroes said in a statement.
"I am pleased to see that so far these rules are increasingly applied, although we need further experience with their application before drawing conclusions on whether specific sectoral rules are still necessary."
Brussels is studying proposals from Poland for a restructuring of three Polish shipyards, including those in Gdansk where democracy movement Solidarity was born, which could allow them to avoid having to repay large amounts of state aid.
The state aid rules were introduced in 2004 and are now due to run until Dec. 31, 2011, the European Commission said.
The Commission, which oversees the EU's state aid rules to ensure a level playing field for business within the 27-country bloc, said it wanted more time to study how aid to boost innovation was being used.
"EU shipyards need to innovate, and the innovation aid rules in the framework on state aid for shipbuilding were designed to foster such innovation," European Competition Commissioner Neelie Kroes said in a statement.
"I am pleased to see that so far these rules are increasingly applied, although we need further experience with their application before drawing conclusions on whether specific sectoral rules are still necessary."
Brussels is studying proposals from Poland for a restructuring of three Polish shipyards, including those in Gdansk where democracy movement Solidarity was born, which could allow them to avoid having to repay large amounts of state aid.