Commission investigates state aid for R&D in Belgium
The European Commission has launched a formal investigation into state aid for aeronautical research and development (R&D) granted in Belgium. The investigation is based on doubts that the Commission has over whether the loans granted to aeronautics companies can and will be repaid. A separate investigation will look at the aid granted to the company Techspace Aero in Belgium. 'I have to ensure that companies in Belgium do not get a more favourable treatment on R&D aid than is allowed by EU rules because the Commission has a duty to ensure that state aid does not distort competition between Member States,' said EU Competition Commissioner Neelie Kroes. Under the Belgian scheme, companies receive loans for their participation in civilian aircraft programmes. A total of EUR 200 million is available. Techspace Aero, a subsidiary of the French group SAFRAN, received a loan of EUR 41 million for its participation in the GP7000 engine programme. Belgium's rules are that the beneficiary companies must only pay back the loans if the R&D programmes are successful. This type of support is not prohibited under EU regulations, but the Commission states that it would like to ensure that 'variations in the terms for repayment of the loans across Member States do not lead to certain companies being favoured'. Normally the terms of repayment state that a loan must be repaid in full when an R&D programme is clearly successful, and that this repayment has to include any interest accumulated, which is calculated using the Commission's reference and discount rate. The Belgian scheme does not foresee the repayment of any interest. The Commission is planning to adopt a new framework for state aid for R&D in the second half of 2006. The new set-up will include measures to support innovation, including: aid for young innovative start-ups; aid to small and medium sized enterprises (SMEs) for advisory and support services, or for the loan of qualified personnel; aid for process and organisational innovation in services; and aid for innovation clusters.
Countries
Belgium