The Commission raised no objections to the implementation of a German Research and Development State aid programme in the context of the EUREKA project JESSI. The scheme, with a budget of about ECU 156 million until 1996, supports basic industrial research in Germany. The Joint European Submicron Silicon Initiative (JESSI) is a RTD programme on silicon-based microelectronics and their integration into systems. Its objective is to create know-how and research networks throughout Europe, in which scientists, component producers and systems users work together in order to ensure an independent European microsystems technology. The beneficiaries of the German State aid will be businesses and scientific institutions active in this area. The levels of funding available for research in different areas are as follows: - 50% of the cost of basic industrial research projects; - 60% of the cost of research projects in the former GDR; - 60% of the cost of projects for SMEs - 65% of the cost of projects for SMEs conducting research projects in the former GDR. The aid to R&D given under this scheme can be considered to be compatible with the common market since they promote the execution of an important project of common European interest.