The Commission has decided to approve aid granted under the German "aeronautics research and technology" aid programme (State aid N381/95). A total expenditure of DM 600 million is expected in the period 1995-1998. The aid is not related to any specific aircraft development programme. Most of the research is general, with basic industrial research concerning primarily: - Flight control technologies/special equipment; - Materials/structures; - Aerodynamics; - Systems technology; - Helicopter technology; - Propulsion technologies. The aim of the research is to increase and validate, in the medium term (until 2010), basic knowledge in a range of aeronautics-related science and technology disciplines. This should enable better understanding of the essential phenomena and make it easier to estimate the relevance of technologies and production methods for later technical applications. This could, in the longer term, provide a basis for developing competitive aircraft of a substantially higher quality. With a view to reinforcing the technological competence of the German aeronautics industry and research institutes, it is envisaged to: - Increase the security and efficiency of air transport; - Develop the potential of the aeronautics equipment industry (mainly SMEs); - Support and reinforce the involvement of research institutes and universities, in the old and new Lander, in Community programmes in the area of aeronautics research. Another aim is to reduce the environmental burden of air traffic. To this effect, extra research efforts are foreseen in the field of engine technology and the development of technical conditions for the reduction of pollution and noise. The aid scheme was judged to be compatible with the common market since it facilitates the development of certain economic activities but does not adversely affect trading conditions to an extent contrary to the common interest.