Brussels, 16/07/2008 (Agence Europe) - On Wednesday 16 July, the European Commission opened an in-depth investigation into €39 million of public funding notified by Sweden for a research and development project lead by Volvo Aero Corporation. The project concerns components for GEnx, an engine developed by General Electric for aircraft such as Boeing's 787 and 747 models. Although the project was started in December 2004, aid was formally decided only in 2007, when the project was near its completion. Considering the long delay between the start of the project and the granting of the aid, the incentive effect of the aid is questionable. It is in particular concerned about the fact that Volvo Aero Corporation has access to substantial funding from its mother company, Volvo Group AB. Furthermore, there is a question of proportionality of the aid, as the aid instrument used would lead the Swedish government to bear the foreign exchange risks of the project. The Commission will, however, take into account the limited market share held by Volvo Aero (2%) in the assessment of the impact on competition of this aid. (A.B./transl.rh)