EU extends shipbuilding aid

The European Commission said it has extended its state aid rules for shipbuilding until the end of 2008. Current measures expire at the end of this year and the EU Competition Commissioner, Neelie Kroes, said the specific use of future aid for innovation is an area the EU executive will examine closely, based on current application of the rules.

Kroes said: ‘The commission wants to see a competitive and innovative shipbuilding industry in Europe – but we need more experience in applying the current rules to the sector before we can decide on what’s best for the future.’