Brussels, 24/02/2011 (Agence Europe) - On Wednesday 23 February, the European Commission approved two state aid schemes which it decided were in line with EU rules.
France: the Commission approved a some €56.7 million per year scheme which involves local government institutions and local-government-managed bodies contributing to the funding of supplementary social welfare cover for their staff. Allowances will be paid to staff and retired staff members if they take out insurance contracts and packages which have been approved by the Oversight Authority or if they sign up to supplementary welfare arrangements established between the local government body and an insurance undertaking after a competitive tender procedure. These allowances, amounting to an average of €42 per staff member, will be paid directly to the staff member or to an insurance undertaking, which will have to deduct the amount in full from the fee or premium payable by the staff members covered by them. The scheme was approved in view of its social character, which will be paid to staff in full and because the conditions laid down for the selection of the undertakings are objective, transparent, non-discriminatory.
Sweden: the Commission authorised state aid consisting of a repayable advance of 120 million Swedish crowns (approximately €12 million) to Volvo Aero Corporation for the development of the Intermediate Compressor Case for the Trent XWB engine, which will equip the new Airbus A350 XWB aircraft family. The repayable advance shares the risk of the fabricated titanium ICC development and covers 40% of the eligible R&D costs of industrial research and experimental development activities. In the event of success, the aid will be fully repaid and the Commission decided that the positive effects of the aid outweighed potential distortions of competition brought about by the aid. The new light alloy part will reduce the weight of the engines, potentially contributing to reduced fuel consumption of the aircraft and a lesser impact on the environment. (F.G./transl.rt)