Brussels, 21/03/2003 (Agence Europe) - In accordance with the regulation establishing a temporary defence mechanism (TDM) to shipbuilding, adopted last year by the EU's Council of Ministers to offset unfair practices by South Korean naval yards, the European Commission has authorised Germany to bring in an aid scheme to support the sector. The scheme allows subsidies of up to 6% of a ship's contract price to be awarded. This aid may be granted for the construction of container ships, and product or chemical tankers. They will be awarded to German shipyards faced with competition from a Korean shipbuilder offering a lower price. Under the general provisions of the Council regulation on TDM, the German scheme is an extraordinary and temporary measure, limited in scope, time and aid intensity. It is worth noting that the general provisions of TDM- which also govern the application of measures to be put into practice by Germany- are as follows: maximum aid intensity of 6% of the contract value and the scope is limited to container ships, product and chemical tankers and Liquefied Natural Gas (LNG) tankers.