Brussels, 13/02/2002 (Agence Europe) - The European Commission has triggered a major reform aimed at establishing a faster, simpler and more accountable control system of government support to large investments in the EU. This new "Multisectoral framework on regional aid for large investment projects" is intended to replace the previous instrument, in force since September 1998. It has as aim to be more transparent and to reduce the overall level of subsidies granted in the EU. "The main purpose (…) is to limit the subsidy race between European regions for attracting major projects (…) which is against the common European interest", declared the Commissioner for Competition, Mario Monti. He also stressed that "the new framework will apply in the same way all over the Community: for each region, it will introduce the same reduction scale in order to limit the distortive effects of considerable amounts of aid granted to large projects, while maintaining the differentiation between aid levels for regions with different regional disadvantages". The reform is based on lessons learnt from the application of the current framework over three years. Thus: 1) the framework has not had the significant effect expected on the level of State aid to large investment projects. The new system will reduce the level of aid according to a scale based on the amount of the investment; 2) the different sectoral rules (such as those applicable to the automobile sector and synthetic fibres) are difficult to apply and have led to a lack of homogeneity. Their integration in the new framework will simplify legislation and increase transparency; 3) the use of a much simpler instrument will reduce the administrative burden at all levels; 4) to prevent serious distortions to competition, stricter rule are provided for for sector affected by structural problems. The Commission also intends establishing by 31 December 2003 a list of sectors suffering from structural problems for which no aid will be authorised. For investments of less than 100 million euro, there will be no notification obligation. Over that amount, obligation on a case by case basis will only be compulsory if the aid is in excess of the maximum amount, calculated on a reducing scale, of which a 100 million euro project may benefit. Due to its importance, the new framework will only be applicable from 1 January 2004 and util 31 December 2009.