Commission prolongs state aid framework for R&D
The European Commission has decided to prolong the current State Aid Framework for research and development (R&D) until 2005. The decision was taken following a review of the framework initiated by the Commission in March last year. Under the existing rules, fundamental research not linked to industrial or commercial activities may receive aid of up to 100 per cent of eligible costs, while industrial research is eligible for a basic rate of up to 50 per cent of costs. Pre-competitive development activities are eligible for a basic rate rising to one quarter of eligible costs. These basic 50 per cent and 25 per cent rates of aid may be increased by additional bonuses of up to 25 per cent for R&D activities undertaken by small and medium-sized enterprises or in assisted areas, or which aim to further the objectives of Community R&D programmes or promote cross-border collaboration. A spokesman for Research Commissioner Philippe Busquin described the current provisions as 'positive.' Investment which helps to attain the Barcelona European Council objective of increasing R&D expenditure in Member States to 3 per cent of GDP by 2010 should be encouraged, he said, and state aid is 'part of the solution.'