Brussels, 17/03/2005 (Agence Europe) - The Commission has given France and Spain permission to grant aid to the shipbuilding sector, because the regimes in place will not create “excessive competition distortion within the internal market”, according to a press release. This aid is in line with the framework of State aid to shipbuilding which has been in force since 1 January 2004, and aims to support the industrial application of new products and procedures, the implementation of which carries with it a risk of technological or industrial failure. In both cases, aid can account for up to 20% of expenditure linked to the innovative plank of the project. The French regime will have 25 million EUR a year for 6 years and the Spanish one 20 million a year for 2 years, covering two kinds of aid- aid to regional investment and aid to research and development. Given the Commission's decision on restructuring aid to Alstom, its subsidiary, Marine Alstom, cannot receive aid before 7 July 2006 (EUROPE of 8 July 2004). In Spain, there will be a restriction on the company Izar until 556 million EUR in aid subsequently declared illegal is paid back and the civil activities of the new company Navantia are put in place. “Innovation is essential to improve Europe's competitiveness and this aid will help to make the shipbuilding industry more competitive, whilst being of benefit to remote regions, in view of the location of many shipyards”, said Commissioner Neelie Kroes.