Brussels, 16/12/2009 (Agence Europe) - On Tuesday 15 December, the European Commission endorsed commitments from the Dutch authorities to change the existing social housing system to bring it into line with EU state aid rules. In 2005, the Commission had expressed doubts as regards the social housing system in the Netherlands. The Commission had received complaints from Dutch house-building companies, claiming that social housing corporations were, with the help of state aid, increasingly expanding their commercial activities instead of using state funding to provide social housing. The state support for social housing corporations occurs mainly in the form of loan guarantees and grants. Following the Commission's investigation, the Dutch authorities have undertaken to change the social housing system so that it becomes more transparent and focuses on a clearly defined target group of socially less advantaged persons. Commercial activities, by contrast, can no longer benefit from aid. In commercial housing markets, social housing companies will need to compete on the same conditions as other operators. On Tuesday, the Commission also approved new aid of €250 million for social housing projects in deprived urban areas over the 10 next years. The Commission believes that this is a compliance with the rules applicable to state aid for Services of General Economic Interest. (O.L.)