Brussels, 29/11/2000 (Agence Europe) - The European Commission will not be proposing prolongation of operating aid for European shipbuilding, which expires on 31 December, but will be stepping up pressure on South Korea so that it puts an end to unfair practices in its shipyards, thus threatening the viability of European shipyards. Such is the line defined on Wednesday by the Commission at the initiative of Competition Commissioner Mario Monti, Industry Commissioner Erkki Liikanen and Trade Commissioner Pascal Lamy.
The strategy to be presented on 5 December to the Energy/Industry Council is based on the following guidelines:
- The operating aid regime for European shipbuilding will come to an end in December.
- If the negotiations under way with Seoul are not successfully concluded by 1 May 2001, the Commission will initiate proceedings at the World Trade Organisation.
- Pending the results of the WTO procedure, the Commission would authorise selective aid to European shipyards. A "temporary support" mechanism would allow European shipbuilders to benefit from aid of up to 9% of the contract, for contracts directly threatened by dumping by Korean yards. This measure would make it possible to protect the European industry during the jury procedure and to give the EU a negotiating instrument, states a source close to Commissioner Liikanen.
- The Commission will study the possibility of reforming the regulation on aid to shipbuilding in order to allow national research/development aid in this sector.
- The Commission does not rule out intensifying European research/development aid in the shipbuilding sector. Aid to research in this sector represents EUR 15 million until 2002. It could be increased to around several tens of millions of euros within the limits of the budgetary allocation to be fixed for the 6th Framework Programme, state sources close to Research Commissioner Philippe Busquin.
