EU changes rules for granting state aid to startup companies
European Union regulators revised state-aid rules to give governments more flexibility when they grant subsidies to startup companies.
Government subsidies will be allowed as long as the aid helps resolve a „well-defined” market failure, is proportionate and has limited effects on competition, the European Commission said in a statement in Brussels today. The new guidelines take effect Januray 1. „Member states should find it easier to use state aid to boost private sector research, development and innovation projects,” Competition Commissioner Neelie Kroes said in the statement. The commission, which investigates whether government aid unfairly distorts competition, is pushing „for less and better targeted state aid.” It's seeking to direct subsidies to areas that will create jobs, such as in research and startup companies, to boost economic growth in the 25-nation bloc. (Bloomberg)
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