|Subject||EC Extends State Aid Rules for Shipbuilders
|Writer||Lee Min Jung
Wednesday, 25 October 2006
<br />The European Commission has decided to prolong its rules framework for state aid to shipbuilding by two years,<br> running now until 31 December 2008. The current framework, which came into force at the beginning of 2004,<br> "takes into account the characteristics of the shipbuilding industry, including provisions about the use of aid for<br> innovation which are unique in EU state aid law". Given the limited period of application of these rules, the <br>Commission said it wanted to acquire more experience before deciding on the future of these rules.
<br />EU Competition Commissioner Neelie Kroes said: “Encouraging innovation in all sectors of the European economy<br> is vitally important The Commission wants to see a competitive and innovative shipbuilding industry in Europe - <br> but we need more experience in applying the current rules to the sector before we can decide on what's best<br> for the future.”