Brussels, 09/12/2005 (Agence Europe) - Although changes in favour of cross-cutting aid are being confirmed, the latest scoreboard for State aid in 2004 shows that the downward trend of State aid has stabilised. Figures published on Friday by the Commission are "somewhat disappointing", according to the spokesperson to Neelie Kroes, who noted that "despite the repeated pledges of the Heads of State of Government to the European Council in favour of less and better aid, they are still not giving any less". Some 62 billion EUR in aid (or 0.6% of EU GNI), compared to 53 billion in 2003 and 49 billion in 2002. 40 billion went to the manufacturing sector and services, 15 billion to agriculture and fisheries, 5.5 billion to the mining industry and just over one billion to transport (not including rail transport). "It is clear that one of the best ways of reducing State aid is to make better use of other measures, such as general and regulatory measures, which distort competition less or not at all", said the Commissioner in charge of Competition in a press release.
Although the overall level of aid remained stable throughout the EU, it developed differently in the different Member States. The volume of aid compared to GNI fell in Cyprus, the Czech Republic and Malta, further to the phasing-out of pre-accession aid, and in Ireland, due to a reduction of company tax and an increase in GNI at the same time. On the other hand, aid saw an increase in France (aid for the restructuring of Alstom in particular), and also in Sweden and the United Kingdom (increased use of aid in favour of cross-cutting objectives such as the environment). In absolute terms, Germany granted the most aid (17.2 billion), followed by France (8.9 billion), Italy (7 billion), the United Kingdom (5.4 billion), Spain (4 billion) and Poland (2.9 billion). The sum total of public subsidies spent by the 10 Member States which joined the Union in its most recent wave of enlargement stood at 5.2 billion EUR in 2004. In terms of internal geographical distribution, the proportion of aid spent by the Member States in the assisted regions was 12.3 billion in 2004, which represents 27% of total aid (with the exception of agriculture, fisheries and transports, for which there is no regional ventilation).
In 2004, the proportion of aid given over to cross-cutting objectives represented 76% of the sum total of aid (not including agriculture, fisheries and transport), which was divided up under four objectives: the environment and energy savings (25% of total aid), regional economic development (18%), research and development (12%) and SMEs (12%). The remaining 25% was allocated to specific sectors: the coal industry (12%), the manufacturing industry (9%) and services (3%). In around half of the Member States, over 90% of the aid granted in 2004 was given over to cross-cutting objectives. France, Spain and Ireland granted 60% of their aid to such objectives, whereas Hungary, Cyprus, Slovakia, Poland, Portugal and Malta granted less; indeed, a lot less: just 50% of the total amount of aid allocated.
3.4 billion EUR in illegal aid (not including interest) has yet to be paid back, out of a total of 9.4 billion EUR since 2000. The 6 billion EUR or so in aid which had already been reimbursed as of the end of June 2005 represented 63.5% of the sum total to be paid back, but only 29 cases out of 96 decisions taken between 2000 and 2005.