Brussels, 17/02/2005 (Agence Europe) - The European Commission has approved a €27 million scheme in Germany to shipbuilding. Under the new scheme, shipbuilders will be able to benefit from state aid in support of the industrial application of products and processes, which are technologically new or represent a substantial improvement over the state of the art in the EU's shipbuilding industry. The aid can be up to 20% of the expenditure related to the innovative part of the project. Over the next four years, the German Federal Government has budgeted some €27 million for this purpose. The scheme is the first of its kind after the entry into force on 1 January 2004 of the framework on state aid to shipbuilding (EUROPE 27 November 2003) and was approved because of the innovation aims of the scheme. One of the objectives of the framework is to encourage greater efficiency and competitiveness, particularly through the promotion of innovation. Competition Commissioner Neelie Kroes commented: “Economic growth and higher employment will only result if we improve innovation in all areas of the Single Market. The aid proposed here by the German Government is exactly the kind of focussed, innovation-based aid that can bring real benefits to the European economy.”