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Commission prolongs specific state aid rules for shipbuilding

The European Commission has decided to prolong the Framework on state aid rules for shipbuilding by to years, until 31 December 2008.
The current Framework on state aid rules for shipbuilding is due to expire on 31 December 2006 and now the Commission has decided to prolong it until the end of 2008. The Commissionen wants to acquire more experience before deciding on the future of these rules.

The prolonging has been in the pipeline for a few months and in the process there has been some doubt as to whether it would answer the purpose to prolong the Framework on innovation aid. Danish Maritime has expressed concern, that the innovation aid in some cases might become aid for production instead of aid for new development as intended.

Danish Maritime is not a supporter of state aid in general because it brings along inexpedient distortion of competition. However, the decision to prolong the Framework on state aid rules creates stability concerning the rules for the next two years, and in some areas the Framework is stricter than the general state aid rules.
Press release from the European Commission

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