Brussels, 02/06/2005 (Agence Europe) - The European Commission has approved a new French tax break scheme for takeovers of ailing industrial firms. The scheme encourages the creation of jobs in connection with such takeovers. The Commission is satisfied that the scheme complies with the state aid rules in the EC Treaty, more especially the rules on state aid to disadvantaged regions and to small and medium-sized enterprises. The scheme provides for aid towards job creation where an ailing industrial firm is taken over by a new firm. The aid takes the form of reductions in corporation tax, trade tax (taxe professionnelle), and property tax (taxe foncière) (Articles 44 septies, 1383 A and 1464 B of the French General Tax Code). The amount of aid varies depending on the number of jobs created and the region in which the takeover takes place. In the least-favoured regions, the aid is available for all firms; elsewhere it is confined to small and medium-sized enterprises. The jobs created be maintained for at least five years.