Brussels, 03/07/2008 (Agence Europe) - The European Commission has prolonged the framework on state aid rules for shipbuilding for three more years, until 31 December 2011. This extension follows an extension in 2006. The Commission has concluded that the framework, which came into effect on 1 January 2004, has been applied without any problems and does not need to be revised at this stage. The Commission points out that the framework's rules on innovation aid have had as yet limited application. Two of its provisions - aid to facilitate the closure of inefficient capacity and aid to create jobs - have not been applied. Other provisions, such as aid to invest in shipyards located in assisted regions ('regional aid'), or export credits and development aid, do not seem to have raised particular problems.
The framework's main principle is that horizontal state aid rules apply to shipbuilding except where specific provisions apply that reflect the specific characteristics of the shipbuilding industry and market. The Commission believes that a little more time is needed to assess the impact on the sector. In relation to innovation, the Commission has so far only received feedback on three of the five approved schemes. It therefore wishes to continue to apply these rules in order to gain more experience on their application. (C.D./transl.rh)