Brussels, 02/05/2006 (Agence Europe) - On 27 April, with a clear majority adopting the report by Sophia in't Veld (ALDE, NL), the European Parliament kept to its somewhat restrictive general approach on State aid, stressing that such aid should remain the exception rather than the rule while at the same time recognising that it is justified in some areas. The Parliament's own-initiative report comes as a response to the consultation launched by the Commission in autumn 2005 (EUROPE 9032), a new version of which was recently presented to the Member States by the Competition Commissioner, Neelie Kroes. During the informal Competitiveness Council, Ms Kroes pointed out that she would make a final proposal before the end of the year on revision of the current Community framework for State aid on research, development and innovation (EUROPE 9178).
The wording of the framework had already been the subject of debate at the Committee on Economic and Monetary Affairs, and the plenary rejected the amendments put forward by the Socialists, who wanted State aid for innovation to be recognised as an instrument available to Member States. The final text therefore keeps to the rapporteur's approach and recalls that State aid should remain an exception rather than the rule. The Parliament stresses that effective governance of innovation policy, international standardisation, cross-border policy learning, and the follow-up and assessment of impact are the most appropriate responses to the challenges facing world competition. It thus calls on the Commission to provide more detailed information on the distortionary effect that State aid can produce, while considering that the low level of investment in research and development calls for a more global approach.
MEPs, who encourage cross-border cooperation and public/private partnerships, believe that State aid to promote innovation should be “temporary, granted according to rational criteria, proportionate, strictly and effectively controlled and subject to periodic impact assessments” using ex-post analyses conducted by Member States and the Commission. The Parliament also considers that regional aid and State aid for innovation are complementary and should focus on less developed regions in order to promote economic and social cohesion. Aid beneficiaries should mainly be start-up companies and SMEs, but also large companies, as long as they cooperate with others in the context of the grouping of innovative businesses and poles of excellence and on condition that they meet the criteria of ex-ante rules.