Brussels, 24/07/2003 (Agence Europe) - On Wednesday, the European Commission gave its authorisation, subject to certain conditions, for a loan from the Basque Government to GAMESA for its participation in the development of two regional aircraft by the manufacturer EMBRAER: the ERJ-170 and ERJ-190. Initially the Commission had doubts about the incentive effect of the aid and the eligibility of certain certification activities and maintenance studies, which it considered too close to the market to be termed R&D within the meaning of the Community framework for state aid for research and development. Following a detailed inquiry, the Commission concluded that the incentive effect could be established for the aid. It also concluded that the doubts it had about the certification activities and maintenance studies being too close to the market still applied. The Commission accordingly concluded that the planned aid could be considered compatible with the EC Treaty, provided that the cost of certification activities and maintenance studies is deducted from the eligible costs and that the gross grant equivalent of the aid does not exceed 30% of the eligible costs after this deduction (a basic rate of 25% for pre-competitive development activities plus a 5% bonus because of the region in which the research is to be carried out), i.e. €27.77 million.