Brussels, 05/11/2001 (Agence Europe) - The European Commission has authorised the Dutch government's plan to give large grants to ASML, a Dutch lithographic company for two projects called EXTATIC and FLUOR. Lithography concerns the part of chip production in which ultrafine electronic elements are created through the exposure of phototresistant materials to light. The grants (which will last up until 31 December 2004) amount to EUR 54.5 million per project. The total cost of the two projects is EUR 464.7 million, funded via the Dutch contribution to the MEDEA+ programme, approved by the Commission in February 2001. This pan-European programme is part of the EUREKA framework and was launched on the initiative of industry for cutting edge R&D in microelectronics. The Commission considered it unlikely that without this aid, the projects would take place with the European Commission speed and the same scope. Since the potential spillover effects of the projects are considerable (making other sectors of industry more competitive) and the fact that the projects face high technological and financial risks, the Commission is of the opinion that the aid has a clear incentive effect. The projects are specifically designed as international projects between ASML and ten other European companies and research institutes from France, Belgium and Germany. The results will be widely disseminated in the EU.