Brussels, 07/12/2006 (Agence Europe) - On 6 December the Commission reminded Belgium that it had to revise its aid scheme for research and development (R&D) in the aeronautical sector in order to bring it into line with state aid rules as laid down by the EC Treaty. The scheme, which was used by Belgium from 2002 to 2006 to provide aid for R&D to companies in the aeronautical sector, had a total budget of over €82 million.
Following Belgium's late notification of the state aid scheme for R&D in the aeronautical sector, the Commission opened an investigation on 22 June 2006. In the Commission's view, the aid was illegal because it had been implemented before being authorised, contrary to the state aid rules in the EC Treaty. Between 2002 and 2006, ten companies received aid, totalling €82,581,000 under this scheme. €41,274,000 went to Techspace Auto in 2003. The Techspace Auto project was the only one subject to the individual notification requirement because it exceeded the thresholds laid down in the Community state aid framework for R&D.
In addition, the Commission felt the Belgian aid scheme was unfair in that it provided for reimbursement of advances made to the aeronautical sector without any interest being paid to the State. These conditions differ from current practice which sees advances being repaid with interest, if the project is successful. In other words, reimbursement arrangements, under the Belgian system, were much better for beneficiary companies than for their partners and competitors.
After the formal investigation, Belgium undertook to amend all the aid granted under the scheme by 31 December 2006 to bring it into line with current Community rules. The aid to Techspace Auto has accordingly been reduced to €31,978,850. Consequently, the Commission feels that the doubts which led it to launch the procedure may be allayed, providing that Belgium does indeed amend the scheme as promised. Were Belgium to do so, the Belgian aid scheme for R&Q in the aeronautical sector would satisfy all the criteria laid down in the current Community state aid framework for R&D. (cd)