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Image header Agence Europe
Europe Daily Bulletin No. 7971
Contents Publication in full By article 15 / 34
GENERAL NEWS / (eu) eu/state aid

Commission recognises legality of state financing for capital investment measures in case of market failure

Brussels, 23/05/2001 (Agence Europe) - On Wednesday, the Commission adopted a Communication describing the way in which it will assess the measures aimed at promoting the growth of capital-investment markets with regards to the rules on State aid. The growth of capital-investment is an objective that the EU as vigorously pursued for the last year, and the Commission recognised the fact that public funds may play a role in its achievement. However, public financing of capital-investment measures may be associated with State aid. To assess the differences in the matter, the Commission underlines that it will need to ensure that the measures act to overcome a market failing. This condition will be assumed fulfilled for the transactions of a small amount. Though the Commission will take into account criteria such as the size of the beneficiary companies, the existence of safeguards allowing for the reduction of distortions to competition and the targets for the profitability of measures. EUROPE will return to this issue.

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