Brussels, 16/12/2002 (Agence Europe) - The European Commission has approved a new aid scheme for companies setting up in the industrial free zone and the international services centre of the free zone of Madeira for the period 2003-2006. This aid will be granted in the form of tax reductions up to the end of 2011. A similar scheme had previously been approved, which ended on 31 December 2000. Given its suspension in 2001 and 2002 the Commission's decision refers to the new scheme valid for the period 2003 to 2006 for the free zone of Madeira. It was decided in the light of the guidelines on direct aid for regional purposes regarding operating aid. More precisely, companies active in this area will be able to enjoy a reduced tax rate of 1% in 2003-2004, 2% in 2005-2006 and 3% in 2007-2011, instead of the normal rate, currently 30%. The Commission stipulates that, in its decision, it took account of the fact that aid will be granted in an outermost lying region which is one of the least developed in the EU, and that it will help with economic diversification by encouraging the development of activities that are little or not at all represented in the regional economy. In should also hedge against handicaps linked to the region's dependence vis-à-vis a reduced number of sectors like tourism and public works. The zone will thus have an industrial zone, and international services centre and an international shipping register.