Brussels, 25/06/2014 (Agence Europe) - On 25 June, the European Commission gave the go-ahead to a Lithuanian state aid scheme to boost the information technology sector.
The European Commission has found that a Lithuanian scheme aimed at boosting the information technology (ICT) sector in Lithuania is in line with EU state aid rules. In particular, the Commission has concluded that the measure contributes to EU cohesion policy objectives by furthering the development of Lithuania's less advantaged regions without unduly distorting competition in the single market.
As electricity prices are relatively high in Lithuania, the scheme allows for reductions in the electricity bill for companies that are active in data processing, web servers (hosting) and related activities and that have committed to invest in Lithuania. The estimated total budget of the scheme until 30 June 2014 is LTL 124,300,800 (around €36 million). The Commisison says the scheme will make an important contribution to a coherent regional development strategy in Lithuania. Moreover, the scheme's duration and budget is limited and the size of eligible projects is also restricted and Commission therefore concluded that on balance the positive aspects of the scheme outweigh any potential distortions of competition resulting from the state support. (EL)