Brussels, 07/06/2005 (Agence Europe) - As announced, the European Commission presented its State Aid Action Plan on Tuesday, setting out the main lines of the far-reaching reform that it plans to undertake over the next five years (EUROPE 8959). The Commission explains how it plans to use public funding to encourage Member States to contribute to achieving the Lisbon goals by focusing aid on improving competitiveness in the industrial sector and on the creation of sustainable employment (more aid for R&D, innovation and capital investment for small enterprises). The action plan is based on the following elements: - less distortive and better targeted State aid so that public money is used effectively to the benefit of EU citizens in terms of improving economic efficiency, generating more growth and sustainable jobs, social and regional cohesion, improving services of general economic interest, sustainable development and cultural diversity; - a more refined economic approach so that less distortive aid can be approved more easily and quickly, especially where money is less easily available from financial markets; - more streamlined and efficient procedures, better enforcement, higher predictability and enhanced transparency. For example, Member States currently have to notify the Commission on most of the State subsidies they want to give. The Commission proposes exempting more measures from this notification obligation and to simplify procedures; - and shared responsibility between Commission and Member States.
Competition Commissioner Neelie Kroes stressed that these measures “aim to ensure Member Sate have a clear, comprehensive and predictable framework, so that they can provide State aid which contributes to cohesion, competitiveness and high quality public services”. The parties are invited to make their observations known by 15 September, with a view to presenting detailed reform proposals.