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Europe Daily Bulletin No. 10404
Contents Publication in full By article 33 / 41
GENERAL NEWS / (ae) eu/state aid

States spend more to stimulate competitiveness

Brussels, 23/06/2011 (Agence Europe) - The European Commission's 2011 spring scoreboard on state aid, published on 22 June, shows that aid from member states focuses on support for research, development and innovation (RDI), protecting the environment, and improving regional development and training. State aid measures in these fields can correct market failures, improve the functioning of markets and thus enhance European competitiveness, in line with the objectives of the EUROPE 2020 strategy.

The scoreboard shows that state aid has continually increased in this sector over the past few years in the member states, both in relative and nominal terms. It increased between 2004 and 2009 from 0.05% (€5.7 billion) of EU GDP to 0.09% in 2009, the last year for which figures are available. Nonetheless, although the public the sector financed a third (0.65% of EU GDP)of total spending on R&D in the EU in 2009, (almost €236.5 billion or 2.01% of GDP, a record level), only 13% (€10.6 billion) of this support was considered as state aid. Moreover, 9% of the total of this aid was notified, having been granted as category exception measures between 2004 and 2010. At the same time, the Commission authorised RDI aid in 425 out of 426 cases, which therefore allowed the planned investment projects to be put into practice.

In this period, more than half of the total €46.5 billion of RDI aid was spent by two member states - Germany (29%) and France (22%) - while five other member states accounted for another third of the total - Italy (11%), Spain (9%), the United Kingdom (7%), Belgium (5%) and The Netherlands (4%).

In the field of environmental measures (CO2 emissions reduction, use of renewable energies, improved energy efficiency), the report illustrates that state aid from member states rose to €13.2 billion in 2009, in the form of direct aid, tax reductions or exemptions. Germany was also the main contender in this arena and accounted for half of all aid allocated.

In terms of drivers for growth and jobs, SMEs can benefit from all categories of aid authorised by the EU rules, as well as higher amounts aid for certain measures. Most of the aid provided exclusively to SMEs between 2004 and 2010 involved capital investment measures. More than half was granted to Germany, the United Kingdom and Italy. Elsewhere, more than half of aid accorded to SMEs in 2009 was awarded as part of measures covered by category exemptions. (F.G./transl.fl)

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