EU state aid spending stable, better targeted-report
11 Dec 2006 12:58:59 GMT
Source: Reuters
BRUSSELS, Dec 11 (Reuters) - European Union spending on state aid remained stable last year despite repeated commitments for cutbacks, but better targeting helped minimise distortions of competition, an EU report showed on Monday. The EU's executive Commission said the 25 member states spent 64 billion euros ($84 billion) in 2005 on helping troubled companies and supporting industries and initiatives, slightly less than the 65 billion euros spent in 2004. The Commission has the final say on whether to allow state aid. It clears such payments only under strict criteria because generally, state financial help distorts competition by supporting one or several companies against others.
