Brussels, 07/02/2007 (Agence Europe) - The European Commission on Wednesday approved the regional aid map covering the period 2007-2013 for Portugal. This decision is part of the process of re-examining the regional aid schemes in place in all the member states, in accordance with the new guidelines adopted in December 2005. These new guidelines aim to reorient regional aid towards the least favoured areas of the enlarged European Union, while taking account of the need to improve competitiveness and ensure a smooth transition. The Commission has already approved the maps for 21 other member states, with only France, Belgium, Denmark, Italy and the Netherlands left to come. The Portuguese map defines the regions of the country which could benefit from national regional aid to investment in large enterprises, in application of the rules of the EC Treaty on state aid, and sets a limit to the aid authorised in the regions in question. The adoption of a regional aid map is a necessary condition to ensure the continuity of regional policy and of the Structural Fund programmes as of January 2007, since all the current maps expired on 31 December 2006.
For the period 2007-2013, the majority (70.1%) of the Portuguese population remains eligible for regional aid under article 87, paragraph 3, point a) of the EC Treaty (aid in favour of economic development in areas where the standard of living is abnormally low or where there is serious under-employment). However, the level of aid is limited to 50 %, 40 % or 30 %, depending on the area. The Algarve region (3.8% of the Portuguese population) remains eligible to benefit from aid up to 31 December 2010, with a maximum aid level of 30%. In 2010, the European Commission will evaluate whether the GDP of the region is still below 75% of the Community average (EU-25). If it is, the limit will remain fixed at 30%. If it is not, the Algarve will come under article 87, paragraph 3, point c) of the EC Treaty (aid in favour of the development of certain economic activities in the regions of a member states which are less favoured compared with the national average) and the level of aid will be capped at 20%.
Information on the Portuguese map will soon be published in the Official Journal of the EU. An unofficial version of the decision will be available soon on the Commission's website: http: //ec.europa.eu/comm/competition/state_aid/regional_aid/regional_aid.html. (hb)