Brussels, 18/03/2003 (Agence Europe) - According to the German press agency vwd, Commissioner Monti has reached a compromise with German authorities concerning State guarantees in favour of shipyards. The Commissioner feared that the guarantees granted by Germany in favour of its shipyards would create competition distortion in Europe and therefore considered that such guarantees, as they were, were State aid (see EUROPE of Wednesday, 5 March, p.13). Aware of the unfair competition of South Korean shipyards and the need to make European yards more competitive, Mr Monti nonetheless moved towards a compromise aimed at adjusting guarantees in order to make them conform to European rules, and had met the German Minister for the Economy, Wolfgang Clement, in this connection. Common ground has apparently been found since then and the Commission is said, according to vwd, to be preparing to give its go-ahead to the scheme, with certain conditions.