Commission endorses state aid for French R&D urban transport programme
The European Commission has cleared a EUR 26.5 million grant by the French Government to NeoVal, a research and development (R&D) programme promoting environmentally friendly transport. NeoVal brings together the French subsidiary of Siemens Transportation System and LOHR Industrie, both specialists in urban transport. The aim of the programme is to develop a new generation of metro train, carrying road technology over to trains and combining several other innovative functions such as power optimisation, on-board power supply, modularity and automatic control mechanisms. For the purpose of the programme, the companies will work closely with several large public laboratories. Following an analysis of the activities involved, the eligible costs, and aid intensity, the Commission concluded that the aid issued to the programme by the French Industrial Innovation Agency was in line with the new Research, Development and Innovation (R&D&I) Community Framework for state aid. In addition, the Commission looked at the specific aid that went to Siemens Transportation System, which exceeded the €7.5 million threshold set by the new rules. With this financial support, the Commission concluded, NeoVal would be able to 'correct certain identified market weaknesses', enabling Siemens to 'carry out a more ambitious R&D programme' without distorting the market. 'The R&D NeoVal programme is part of Community-wide efforts to promote more environmentally-friendly mobility. The Commission has satisfied itself that the positive effects are greater than any negative impact on competition,' commented EU Competition Commissioner Neelie Kroes. The decision to approve aid to the NeoVal programme is the first individual aid measure decision taken by the Commission on the basis of the new R&D&I Framework for state aid.
Countries
France