EC extends state aid for shipbuilders
The European Commission has decided to prolong its rules framework for state aid to shipbuilding by two years, running now until 31 December 2008. The current framework, which came into force at the beginning of 2004, "takes into account the characteristics of the shipbuilding industry, including provisions about the use of aid for innovation which are unique in EU state aid law". Given the limited period of application of these rules, the Commission said it wanted to acquire more experience before deciding on the future of these rules.
EU Competition Commissioner Neelie Kroes said: “Encouraging innovation in all sectors of the European economy is vitally important The Commission wants to see a competitive and innovative shipbuilding industry in Europe – but we need more experience in applying the current rules to the sector before we can decide on what’s best for the future.”