State Aid Scoreboard, second edition
Date: 2001-12-20
Institutions: European Commission
Subjects: EU Member State, EU statistics, State aid, aid policy, control of State aid, report, transparency in decision-making

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.12.2001
COM(2001)782 final

State Aid Scoreboard, second edition

(presented by the Commission)

State Aid Scoreboard 2001, second edition

Contents

1.

2.

2.1.

2.2.

3.

3.1.

Introduction .................................................................................................................. 4

Structure and Limitations of the Scoreboard................................................................ 4

Structure ....................................................................................................................... 4

Limitations ................................................................................................................... 5

Overview of State aid in the European Union.............................................................. 6

Stockholm indicator – Do Member States demonstrate a downward trend in
granting aid?................................................................................................................. 6

3.2.

Distribution of State aid among Member States and main areas of the economy........ 7

4.

4.1.

4.2.

4.3.

5.

5.1.

5.2.

6.

6.1.

6.2.

6.3.

6.4.

7.

7.1.

7.2.

The need to redirect aid to horizontal, regional and cohesion objectives .................... 8

Redirecting aid to horizontal objectives....................................................................... 9

State aid supporting regional development and cohesion .......................................... 11

State aid to specific service sectors ............................................................................ 12

Procedural performance in the European Union ........................................................ 13

Decision Process ........................................................................................................ 13

Negative decisions and recovery of State aid............................................................. 14

State Aid for R&D and the Internal Market ............................................................... 16

State aid for R&D....................................................................................................... 16

State aid for R&D as a part of Business Entreprise R&D expenditure...................... 17

Venture capital helps high-tech start-up firms ........................................................... 18

State aid for R&D and innovation in the Internal Market.......................................... 18

State aid fora............................................................................................................... 21

Member State Forum.................................................................................................. 21

European Parliament Forum....................................................................................... 21

2

Graphs and Tables

Graph 1: The majority of Member States show a downward trend in State aid in relation

to GDP between 1997 and 1999. ................................................................................. 6

Graph 2: Highly variable distribution of State aid within the EU in 1999................................ 7

Graph 3: Most Member States redirected aid to horizontal objectives between 1997 and

1999.............................................................................................................................. 9

Graph 4: A decreasing share of aid went to individual sectors between 1997 and 1999........ 10

Table 1: Regional aid and regional development .................................................................... 11

Graph 5: Seven Member States reduced aid to specific service sectors. ................................. 12

Graph 6: Share of negative decisions by Member State. ......................................................... 14

Table 2: Recovery orders pending at 10.09.2001. ................................................................... 14

Graph 7: Pending recovery orders in the Member States........................................................ 15

Table 3: Recovery orders pending and amounts to be recovered by Member State................ 15

Graph 8: State aid for R&D is relatively small compared to Business Enterprise R&D

expenditure. ................................................................................................................ 17

Graph 9: Early stage venture capital....................................................................................... 18

Table 4: State aid for R&D and selected innovation indicators. ............................................. 19

3

1. 

INTRODUCTION

This second edition of the State aid Scoreboard intends to further increase transparency
and  to  raise  awareness  for  the  need  of  State  aid  control.  A  control,  that  has  been
significantly  tightened  by  the  Commission  in  recent  years,  thus  ensuring  that  Member
States  only award  aid that really serves the  common interest.  Although  each  individual
grant of aid  is  awarded  under  conditions  accepted  by  the  Commission,  it  is  undeniable
that the cumulative effect of still more than 79  Billion Euro in 1999 has a considerable
distortive effect on competition in the Internal Market. This is recognised by the Member
States  and  the  European  Parliament.  In  March  2001,  the  Stockholm  European  Council
therefore asked Member States to demonstrate a downward trend in State aid in relation
to  GDP  by  2003,  taking  into  account  the  need  to  redirect  aid  towards  horizontal
objectives  of  common  interest,  including  cohesion  objectives.1  In  December  2001,  the
Energy and Industry Council reconfirmed these goals and emphasised the relevance and
usefulness of the State aid Scoreboard.

Whilst  the  Commission  will  continue  to  maintain  a  strict  State  aid  control  policy,  to
increase  transparency  and  closely  monitor  the  levels  of  aid,  action  has  to  be  taken  by
Member  States  themselves  in  order  to  reduce  State  aid  and  redirect  them  towards
horizontal  objectives  in  particular  the  Lisbon  conclusions  which  aim  at  making  the
European  Union  the  most  dynamic  and  competitive  knowledge  society  of  the  world.
Their  action  should  be  aimed  at  reviewing  national  aid  policies,  assessing  whether  the
grant  of  State  aid  is  always  the  most  appropriate  instrument  to  correct  certain  market
failures and evaluating the effectiveness of the aid that is awarded and concentrate public
support  measures  in  areas  where  market  failure  has  clearly  been  identified.  With  this
second edition of the Scoreboard, the Commission aims at encouraging this re-evaluation
process in the Member States.

Member States have already contributed to the Scoreboard and some of their comments
and those of the European Parliament on the first edition of the Scoreboard have already
been incorporated in this edition, other observations will be included in later editions. An
integral  part  of  the  Scoreboard  is  the  Member  State  Forum  that  already  provides  a
tangible  example  of  how  Member  States  can  exchange  information  on  their  support
policies and their respective ex ante and ex post evaluation of the aid awarded. Member
States are encouraged to continue their support of this initiative.

2. 

STRUCTURE AND LIMITATIONS OF THE SCOREBOARD

2.1. 

Structure

The Scoreboard now contains five parts: The first part provides a general overview of the
State aid situation in Member States. In the second part of the Scoreboard an analysis of
horizontal,  regional  and  sectorial  aid  is  given  that  is,  for  the  time  being,  limited  to
manufacturing  and  service  sectors.  The  third  part  contains  data  on  State  aid  control
procedures of both, the Commission and the Member States. The fourth part attempts to
situate State aid in the broader context of the Internal Market and the structural reforms

1 SN 100/01 point 20 and 21.

4

                                                
undertaken by the Member States. In the light of the broader implications of State aid and
beyond the mere respect of EC competition rules, Member States may wish to consider
re-evaluating  their  State  aid  policies  for  reasons  of  economic  effectiveness  and
efficiency.  The  fifth  part,  the  State  aid  Forum,  collects  sources  and  Internet-links  for
supplementary  information.  Finally,  a  technical  annex  is  added  that  presents  the
underlying  data  for  each  graphs  and  table  contained  in  the  Scoreboard.  All  data  are  in
constant 1998 values.

Future editions will maintain this structure. The fourth part, dedicated to State aid in the
broader  context  of  the  Internal  Market  will  in  subsequent  editions  focus  on  State  aid
within  other  selected  policy  frameworks  such  as  environment,  SME  or  regional
development, with a view to measure, where possible, its effectiveness and efficiency.

In this second edition of the Scoreboard the first part shows the change of State aid as a
percentage of GDP between 1997 and 1999 and the level of State aid as a percentage of
GDP  in  1999  in  Member  States  broken  down  into  main  areas  of  the  economy.  The
second  part  provides  graphs  and  tables  that  show  Member  States’  relative  success  in
redirecting  aid  from  specific  sectors  to  horizontal  and  regional  objectives.  In  the  third
part, data on the State  aid control procedure, in  particular  the  average  length  of  certain
procedures,  is  provided.  In  addition,  information  on  the  recovery  of  illegally  granted
State  aid  is  included.  The  fourth  part  of  the  Scoreboard,  dedicated  to  State  aid  as  an
economic instrument in the Internal Market, highlights in this edition the role of State aid
in  general  R&D  policy.  The  final  part,  the  Forum,  provides  further  information  on
activities of Member States and now in addition of the European Parliament.

2.2. 

Limitations

This second edition of the Scoreboard covers the period of 1997 to 1999 that predates the
Stockholm  European  Council  in  2001.  The  following  data  restraints  have  to  be
considered when the objectives set in Stockholm will be revisited in 2003. Data for the
year 2000 will be available in early 2002. A full set of State aid data for the year 2003
will  only  be  available  in  early  2005  as  Member  States,  together  with  the  Commission,
require up to one year to collect and analyse State aid data.

State aid data collected for the Scoreboard are grouped according to primary objectives.
It  has  to  be  noted  that  primary  objectives  cannot  always  give  a  completely  accurate
picture of the final  beneficiaries: e.g.  a part of  regional  aid  is  in  fact  paid  to  small  and
medium  size  enterprises,  aid  for  R&D  goes  to  particular  sectors,  and  so  on.  Therefore,
the Commission will continue to improve the detail of the data it collects.

Throughout the Scoreboard a series of indicators is presented. It has to be underlined that
the purpose of these indicators is to highlight  factual  developments, without attempting
to  establish  causal  links.  In  this  way,  the  Scoreboard  does  not  make  judgements  but  is
offering factual data, which should encourage a debate without prejudging its outcome. It
is important to keep this limitation in mind when using the Scoreboard data.

5

3. 

OVERVIEW OF STATE AID IN THE EUROPEAN UNION

The  chapter  gives  an  overview  on  the  evolution  of  aid  granted  in  the  European  Union
from 1997 to 1999 and a breakdown of aid  granted in 1999 according to main areas of
the economy.

3.1. 

Stockholm  indicator  –  Do  Member  States  demonstrate  a  downward  trend
in granting aid?

The  Stockholm  European  Council  in  2001  asked  Member  States  to  demonstrate  a
downward  trend  in  State  aid  in  relation  to  GDP  by  2003.  Graph  1  provides  for  an
indicator to verify the efforts that have been made by Member States to meet the demand
of  the  Council.  The  ‘Stockholm  indicator’  shows  for  each  Member  State  reductions  in
State aid before the  Stockholm Council between 1997 and  1999. The Commission  will
update this indicator annually. Using this indicator all Member States should be able to
demonstrate a downward trend of State aid in relation to GDP by 2003.

Graph  1:  The  majority  of  Member  States  show  a  downward  trend  in  State  aid  in
relation to GDP between 1997 and 1999.

P

I

GR

F

FIN

D

E

UK

A

S

B

NL

DK

L

IRL

EU

-1,0%

-0,8%

-0,6%

-0,4%

-0,2%

0,0%

0,2%

0,4%

0,6%

Note:
1997 and 1999. Source: DG Competition and Eurostat.

Percentage point change of State aid by Member State as a percentage of national GDP between

State  aid  as  a  percentage  of  GDP  has  been  reduced  in  eleven  Member  States.  In  the
remaining four Member States, State aid as a percentage of GDP increased. The increases
of overall aid in Luxembourg, the Netherlands and Denmark are due to higher levels of
aid granted to railway transport. The sharp increase of the aid level in Ireland is a result
of the Commission considering since 1998 the  reduced  Irish Corporation Tax, which  is
now being phased out, as State aid.

6

3.2. 

Distribution  of  State  aid  among  Member  States  and  main  areas  of  the
economy

The  EU  level  of  overall  State  aid  expressed  as  a  percentage  of  GDP  has  been  steadily
decreasing  since  1993.  Between  1997  and  1999,  it  has  fallen  by  over  30%.  However,
with the latest data of 1999 indicating an aid level of 1% of EU GDP, there may still be
scope for further reductions in the future.

Moreover, significant disparities remain between Member States in their award of overall
levels  of  aid.  In  addition,  the  extent  to  which  main  areas  of  the  economy  benefit  from
such  aid  varies  widely  among  Member  States.  Graph  2  provides  an  overview  of  the
distribution of aid among Member States and main areas of the economy.

Graph 2: Highly variable distribution of State aid within the EU in 1999.

EU average

UK

S

NL

I

GR

E

A

F

P

D

DK

L

B

FIN

IRL

0,0%

0,3%

0,5%

0,8%

1,0%

1,3%

1,5%

1,8%

Manufacturing, Coal

Services

Agriculture and Fisheries Railways

Note: Distribution of State aid to main areas of the economy by Member States in 1999 as a percentage of
national GDP. State aid granted to specific service sectors includes airline and financial services, tourism,
media and culture. Source: DG Competition and Eurostat.

Whilst in Ireland and Finland, State aid as a percentage of GDP exceeds 1.5% in 1999, in
the United Kingdom State aid as a percentage of GDP is less than 0.5%. Together with
the  United  Kingdom,  Sweden,  the  Netherlands,  Italy  and  Greece  have  also  aid  levels
below the EU average.

The share of aid to manufacturing, coal and service sectors as a percentage of overall aid
ranged from 16% in Luxembourg to 69% in Portugal. Aid to the agricultural and fisheries
sectors accounted for only 7% of overall aid in Germany while in Finland agricultural aid
was as high as 73%. The share of aid to the railway sector was highest in Luxembourg
and lowest in Finland. Additional information on State aid per person employed is shown
in the technical annex (see Table 0).

7

4. 

THE  NEED  TO  REDIRECT  AID  TO  HORIZONTAL,  REGIONAL  AND  COHESION
OBJECTIVES

At  the  Stockholm  and  the  Lisbon  European  Council,  Member  States  subscribed  to  the
need  to  redirect  aid  from  supporting  individual  companies  or  sectors  to  horizontal
objectives  of  common  interest,  including  cohesion  objectives.  The  Scoreboard  will
therefore concentrate on these objectives.

The  current  edition  focuses  on  the  pursuit  of  these  objectives  in  the  context  of  the
manufacturing,  coal  and  service  sectors.  Large  parts  of  the  agricultural  and  fisheries
sector traditionally receive substantial  support  from  the  Community  budget.  A  separate
analysis will be made in future editions of the Scoreboard. Financial support for railway
transport  is  usually  granted  to  undertakings  as  a  compensation  for  public  service
obligations.  Such  compensation  benefits  from  a  legal  exemption2  from  the  obligatory
State aid assessment requested by Article 88 EC Treaty. Aid to agriculture, fisheries and
railway transport is therefore not included in this chapter.

2 Article 17 of Council regulation 1191/69.

8

                                                
4.1. 

Redirecting aid to horizontal objectives

State aid for horizontal objectives, i.e. aid that is not targeted towards specific sectors or
geographic areas, is usually considered as being less distortive than sectorial and ad hoc
aid, such as aid for rescue and restructuring. Aid granted horizontally to all sectors is less
selective than the other  kinds  of  aid.  Its  positive  effect  in  addressing  market  failures  is
therefore  more  likely  to  outweigh  its  negative  impact  on  competition.  Research  and
development, safeguarding the environment and energy saving and support to small and
medium-sized  enterprises  are  the  most  prominent  horizontal  objectives  pursued  with
State aid.

Both the Stockholm and the Lisbon European Councils have asked for Member States to
redirect aid away from sector specific and ad hoc aid towards these horizontal objectives
of  Community  interest.  Graph  3  indicates  the  degree  to  which  Member  States  have
redirected  aid  to  horizontal  objectives  between  1997  and  1999.  The  Commission  will
update this indicator annually in order to follow the developments in Member States.

Graph 3: Most Member States redirected aid to horizontal objectives between 1997
and 1999.

EU

L

I

UK

P

FIN

E

B

S

F

DK

EL

D

NL

A

IRL

-10%

-5%

0%

5%

10%

15%

20%

25%

Note: Percentage point change of State aid for horizontal objectives (SME, R&D, environment and energy
saving, commerce of SMEs,  employment  and  training)  in  total  aid  less  agriculture,  fisheries  and  railway
transport between 1997 and 1999. Source: DG Competition.

The  relative  share  of  aid  granted  for  horizontal  objectives  in  the  EU,  as  opposed  to
regional  or  sectorial  objectives,  has  increased  by  almost  12%  from  1997  to  1999.  In
contrast, the relative share decreased in the Netherlands, Austria and Ireland.

9

Graph 4 shows that the share of aid granted to specific sectors in the EU, as opposed to
regional  or  horizontal  objectives,  has  decreased  by  1.6%  from  1997  to  1999,  although
this share increased in Luxembourg, Germany, the Netherlands, Austria and Belgium.

Graph 4: A decreasing share of aid went to individual sectors between 1997 and
1999.

EU

EL

FIN

UK

E

DK

P

IRL

F

I

S

B

A

NL

D

L

-40%

-30%

-20%

-10%

0%

10%

Note:  Percentage  point  change  of  State  aid  granted  to  coal  mining  and  to  individual  manufacturing  and
service  sectors  in  total  aid  (less  agriculture,  fisheries  and  railway  transport)  between  1997  and  1999.
Source: DG Competition.

At EU level, the development over time is already going in the direction sought  by the
European Council. However, in  1999  aid for coal mining and to  individual  service and
manufacturing  sectors  still  accounted  for  over  30%  of  total  aid.  Increased  efforts  by
Member States are therefore still needed if the desired reallocation of aid from sectorial
to horizontal objectives is to be achieved.

10

4.2. 

State aid supporting regional development and cohesion

Both the Stockholm and the Lisbon European Councils also called upon Member States
to  shift  emphasis  towards  regional  development  and  cohesion  objectives.  This  chapter
shows,  on  the  one  hand,  national  regional  aid  granted  under  Article  87(3)a  and  direct
support to companies  granted  under the  Community’s  Regional  fund  (objective  1)  and,
on the other hand, the relative economic growth of assisted regions. Regional aid that is
granted under Article 87(3)c is not included in Table 1.

Table 1: Regional aid and regional development

GDP growth of 
assisted regions 
under Art.87(3)a 
with respect to 
national average
-
-
+
-
+
+
+
+
-

National regional 
aid as % of GDP 
of assisted 
regions under 
Art.87(3)a
0,78
3,49
0,55
0,04
3,59
0,29
2,51
0,90
0,35

Direct support to companies 
granted under Regional fund 
(objective 1 interventions)
as % of GDP of 
assisted regions under Art.87(3)a
0,10
0,11
0,27
0,18
0,16
0,12
0,14
0,34
0,07

Member 
State
A
D
EL*
E
F
IRL*
I
P*
UK

EU

+

1,50

0,17

Note: All data are 1996-1998 averages. A positive GDP growth differential (+) indicates that the national
assisted regions grow faster than the national average, whereas a negative sign (-) indicates that growth in
assisted  regions  is  lower  than  the  national  average.  (*)  In  the  absence  of  any  non-assisted  regions  in
Portugal, Greece and Ireland the growth differential of national GDP to the EU average is indicated. The
table contains regional aid that has been granted under Article 87(3)a and aid granted under the Regional
fund  (objective  1  interventions)  in  assisted  regions.  Assisted  regions  are  regions  within  the  meaning  of
Article 87(3)a valid until 31/12/1999. Source: DG Competition, DG Regional Policy and Eurostat.

Table 1 shows that during the period 1996 to 1998 national regional aid as a percentage
of  GDP  of  assisted  regions  is  above  the  EU  average  in  France,  Germany  and  Italy.  In
addition, direct support to companies granted under the Regional fund as a percentage of
the assisted regions’ GDP is above EU average in Portugal, Greece and Spain. In Greece,
France, Ireland, Italy and Portugal assisted regions grew faster than non-assisted regions
between 1996 and 1998.

11

4.3. 

State aid to specific service sectors

Aid  to  support  specific  service  sectors,  in  particular  when  it  is  granted  as  rescue  and
restructuring  aid,  is  likely  to  distort  competition  to  a  larger  degree  than  aid  that  is
directed towards horizontal objectives. The bulk of  aid that is  directed  towards specific
service  sectors,  namely  airline  and  financial  services,  tourism,  media  and  culture3,
favours those areas of activity that continue to grow in importance,  such  as tourism  or,
sectors  that  have  recently  been  liberalised  such  as  air  transport  and  financial  services.
Graph 5 presents the relative change of State aid granted specifically to service sectors in
Member States in comparison to overall aid (excluding agriculture, fisheries and railway
transport).

Graph 5: Seven Member States reduced aid to specific service sectors.

EU

EL

F

P

IRL

I

S

B

FIN

D

DK

E

A

UK

NL

L

-40%

-30%

-20%

-10%

0%

10%

Note:  Percentage  change  of  State  aid  granted  specifically  to  airline  services,  tourism,  financial  services,
media  and  culture  in  total  aid  less  agriculture,  fisheries  and  railway  transport  by  Member  State  between
1997 and 1999. Source: DG Competition.

Between  1997  and  1999,  seven  Member  States  reduced  their  relative  share  of  aid  to
specific service sectors whereas the other eight increased it. Since, however, the volume
of the aid reduction, particular in Greece and France, outweighs the increase - although
significant -  in  the  Netherlands  and  Luxembourg,  the  overall  share  in  the  European
Union clearly decreases.

3 As far as media and culture are concerned, it must however be noted that a significant part of support that
is  granted  in  these  sectors  is  a  compensation  for  public  service  obligations  and  State  aid  in  support  of
cultural objectives as defined by Article 87 3 d) EC Treaty.

12

                                                
5. 

PROCEDURAL PERFORMANCE IN THE EUROPEAN UNION

5.1. 

Decision Process

The Commission controls the Member States’ granting of State aid by means of a formal
and transparent procedure, Council regulation No 659/19994. Currently, the average time
to approve notified aid cases is around four months. This duration is a result of the fact
that  in  many  cases  relevant  information  is  lacking  during  the  first  notification  received
from Member States and has subsequently to be requested explicitly by the Commission.

If the Commission has doubts whether  an aid  measure of Member States is compatible
with  the  EC  Treaty,  it  opens  a  formal  investigation  procedure  under  Article  88(2).  At
present,  it  takes  on  average  nine  months  until  the  Commission  opens  such  a  formal
investigation on notified aid.

The  Commission  is  currently  in  a  process  of  streamlining  State  aid  rules  and  control
procedures  which  will  help  to  reduce  these  periods,  particularly  in  providing  Member
States  with  improved  and  concise  information  on  what  they  have  to  submit  to  the
Commission.  Improving  the  quality  of  Member  States’  notifications  of  aid  cases  will
significantly  accelerate  the  Commission’s  decision  process.  A  further  element  that  will
reduce  the  evaluation  periods  for  aid  is  the  recent  introduction  of  group  exemption
regulations  for  SME5  and  training  aid6.  Their  effects  will  be  analysed  in  future
Scoreboards.

4 See OJ 83/1 of 27.03.1999.
5 Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of
the EC Treaty to State aid to small and medium-sized enterprises OJ L 010 , 13/01/2001 P. 0033 – 0042.
6 Commission Regulation (EC) No 68/2001 of 12 January 2001 on the application of Articles 87 and 88 of
the EC Treaty to training aid OJ L 010 , 13/01/2001 P. 0020 – 0029.

13

                                                
5.2. 

Negative decisions and recovery of State aid

When the Commission comes to the conclusion that an aid does not fulfil the criteria to
be  compatible  with  the  EC  Treaty,  it  takes  a  negative  decision.  Graph  6  gives  a
breakdown of the share of negative decisions by Member States during the period 1998-
2000.

Graph 6: Share of negative decisions by Member State.

Negative decisions

Positive and conditional decisions

e
g
a
t
n
e
c
r
e
P

100

90

80

70

60

50

40

30

20

10

0

94

94

100

89

88

94

100

92

96

90

89

96

96

98

99

93

6

A
(98)

6

B
(106)

0

DK
(44)

11

D
(386)

12

EL
(48)

6

E
(296)

0

FIN
(47)

8

F
(115)

4

IRL
(48)

10

I
(350)

11

L
(9)

4

NL
(156)

4

P
(54)

2

S
(43)

1

UK
(92)

7

EU
(1982)

Number in brackets: Total number of decisions per Member State

Note: State aid decisions on all sectors except fisheries. Source: DG Agriculture, DG Competition and DG
Transport and Energy.

In  case  of  a  negative  decision  the  Commission  orders,  as  a  general  rule,  the  Member
State to recover aid from the beneficiary if the aid has been already awarded. Table 2 and
Graph 7 give an overview of the present situation of these recovery orders.

Table 2: Recovery orders pending at 10.09.2001.

In process of
execution

32

Forming part of
bankruptcy
procedures
14

Currently object
of National court
procedures
8

Currently object
of European court
procedures
6

Total number
pending

60

Note:  State  aid  recovery  procedures  in  sectors  other  than  agriculture,  fisheries  and  transport.  Court
procedures do not necessarily have a suspensive effect on recovery. Source: DG Competition.

14

Graph 7: Pending recovery orders in the Member States.

30

25

20

15

10

5

0

D

E

F

B

I

NL

EL

UK

Note:  Number  of  State  aid  recovery  procedures  in  sectors  other  than  agriculture,  fisheries  and  transport
pending at 10/09/2001 by Member State. Source: DG Competition.

Table  3  provides  a  breakdown  of  the  amounts  of  incompatible  aid  that  have  to  be
recovered in Member States. In some cases where the number of beneficiaries is high, it
is  not  possible  to  specify  the  exact  amount  of  incompatible  aid  before  it  has  been
reimbursed by the beneficiaries. About half of the amount to be recovered in Germany is
attributed to one case that is pending before the European Court of Justice.

Table 3: Recovery orders pending and amounts to be recovered by Member State.

Situation at
10.09.2001

D
E
I
F
B
EL
UK
NL
EU

Recovery
orders pending
28
13
5
5
5
1
1
2
60

Amount to be
recovered in million €
1.739
143
65
59
40
8
2
<1
2.055

Number of cases were the
amount is not specified
3
10
2
1
2
0
0
1
19

Note:  State  aid  recovery  procedures  in  sectors  other  than  agriculture,  fisheries  and  transport  by  Member
State. Source: DG Competition.

15

6. 

STATE AID FOR R&D AND THE INTERNAL MARKET

6.1. 

State aid for R&D

than 

Market  forces  alone  may  not  ensure  a  socio-economic  optimal  level  of  research  and
development effort. The investment decisions of firms are above all determined by their
own  private  benefits,  but  the  total  benefits  to  society  of  an  R&D  programme  may  be
these  private  benefits  because  of  spillover  effects
significantly  greater 
(externalities). These externalities can occur through a number of channels: conversations
between  employees  of  different  firms,  mobility  of  research  personnel,  technical
publications and conferences, disclosure in patent documents and imitation. Furthermore,
research  results  that  do  not  lead  directly  to  new  products  or  processes  can  not  be
protected by patents. Even when the results can be patented, the period of validity of the
patent may be shorter than the time needed to earn an adequate return on the investment.
In  addition, small firms in particular may  have  difficulty  in  finding  external  sources  of
finance for R&D projects, because of the high level of risk attached to them. The amount
of  R&D  undertaken  by  a  firm  therefore  tends  to  be  limited  by  its  internal  financial
resources.  Thus,  the  impossibility  for  firms  to  reap  the  profit  from  the  spilled  over
research  results,  which  they  nevertheless  have  to  finance,  and  the  financial  limitation
tend to lead firms to do less R&D than could be desirable.

Public support to lower the cost for business of carrying out R&D can therefore enhance
total welfare.  However, when this  support  has  distortive  effects  on  competition,  it  falls
under State aid rules of the EC Treaty. The Commission has therefore to carefully control
these effects. Although the Commission in accordance with the general policy objective
to redirect aid to horizontal objectives, traditionally takes a favourable view on State aid
to R&D, such aid can only be allowed if it serves as an incentive for firms to undertake
R&D activities in addition to their normal day-to-day operations (additionality principle).

16

6.2. 

State  aid  for  R&D  as  a  part  of  overall  Business  enterprise  R&D
expenditure

Traditionally,  an  important  part  of  R&D  in  the  Community  has  been  financed  by
enterprises.  R&D  aid  is  one  means  by  which  Member  States  can  support  the  R&D
activities of the business sector. Therefore, Graph 8 compares Business Enterprise R&D
expenditure with the provision of R&D aid.

Graph  8:  State  aid  for  R&D  is  relatively  small  compared  to  Business  Enterprise  R&D
expenditure.

e
g
a
t
n
e
c
r
e
P

3,0

2,5

2,0

1,5

1,0

0,5

0,0

A

B

DK

D

EL

E

FIN

F

IRL

I

L

NL

P

S

UK

EU

Business enterprise R&D expenditure as % of GDP

State aid for R&D as % of GDP

Note:  All  data  are  1997-1999  averages.  State  aid  data  on  R&D  are  not  collected  within  the  regular
guidelines and standards of R&D surveys (Frascati Manual) and any comparison  might therefore contain
inaccuracies.  R&D  aid  that  is  given  in  the  context  of  regional  aid  is  not  included.  Data  on  Business
enterprise  R&D  expenditure  (BERD)  for  Austria  and  Luxembourg  are  not  available.  Data  on  R&D
expenditure  for  some  Member  States  are  based  on  Eurostat  estimates.  Source:  DG  Competition  and
Eurostat (structural indicators).

State  aid  for  R&D  accounts  for  only  0.05%  of  GDP  in  the  EU.  Finland,  Denmark  and
Austria have the highest shares..

17

6.3. 

Venture capital helps high-tech start-up firms

In certain cases, firms have difficulty in finding external sources of finance for business
plans,  because  of  the  high  level  of  risk  attached  to  them.  In  particular,  high-tech
companies in their start-up and development stages7 face these difficulties because of the
higher uncertainty of their business success compared to well-established firms. Start-up
firms  that  are  engaged  in  high-tech  and  R&D  face  considerable  difficulties  in  finding
sufficient funding to master the high risks involved in the immediate commercialisation
of  R&D  results.  The  provision  of  early-stage  venture  capital  can,  at  least  partially,
disentangle  this  limiting  factor.  Graph  9  shows  the  relative  importance  of  early  stage
venture capital in Member States.

Graph 9: Early stage venture capital.

0,07%

0,06%

0,05%

0,04%

0,03%

0,02%

0,01%

0,00%

A

B

D

DK

E

EL

F

FIN

I

IRL

L

NL

P

S

UK

EU

Venture capital (early stage)

Note:  Venture  capital  (early  stage  -  seed  and  start-up  phase)  as  percentage  GDP  (1997-1999  averages).
Data  on  venture  capital  are  not  available  for  Luxembourg.  Source:  DG  Competition,  Eurostat  (structural
indicators) and European Venture Capital Association.

Venture capital as a percentage of GDP is highest in Belgium, the Netherlands, Sweden
and  Finland.  In  the  EU  as  a  whole,  early  stage  venture  capital  accounts  for  only  0.02
percent of GDP.

6.4. 

State aid for R&D and innovation in the Internal Market

Given the relatively limited contribution of R&D  aid to overall business expenditure in
R&D in Member States, the effects of the overall volume of R&D aid on innovation in
the  Internal  Market  might  only  be  partially  assessable.  Nonetheless,  Table  4  presents
State aid to R&D as a percentage of GDP and overall R&D expenditure as a percentage

7 Commission definition for venture capital in: "Risk capital: a key to job creation in the European Union"
(SEC(1998) 552 final, 31 March 1998)

18

                                                
of  GDP  together  with  some  results  of  R&D  activities,  here  reflected  in  the  number  of
patents and labour productivity growth. The growth in labour productivity measures the
efficiency  of  production.  At  least  a  considerable  part  of  the  increase  in  efficiency  of
production is assumed to reflect the impact of R&D. Even though the relevance of these
indicators is clearly limited, their comparison allows some observations. Both the level of
patenting  and  the  growth  of  labour  productivity  vary  considerably  from  one  Member
State to another. There is no apparent correlation between either of these indicators and
the  level R&D aid. For example, Member States with a relatively high level of R&D aid
do  not  necessarily  generate  a  large  number  of  patents  or  enjoy  a  high  rate  of  labour
productivity  growth.  It  should  be  noted  that  generating  patents  is  not  the  primary
objective of R&D aid and the number of  patents is strongly dependent  on  the  sector in
which  the  industrial  research  is  conducted.  Hence,  the  number  of  patents  is  also
influenced by the strong or weak position of certain industries in Member States.

Table 4: State aid for R&D and selected innovation indicators.

Patents
per million 
inhabitants
131
133
261
151
20
7
121
277
63
56
161
180
3
293
101
126

Labour productivity
 - average annual growth, 
1995-2000 (in %)
2,53
1,72
1,46
1,31
0,69
2,56
1,50
2,04
0,73
4,24
4,12
0,62
2,70
0,89
0,01
1,07

A
B
D
DK
E
EL
F
FIN
I
IRL
L
NL
P
S
UK
EU

Overall R&D 
expenditure
 as % of GDP
1,78
1,92
2,35
1,99
0,87
0,51
2,19
2,93
1,00
1,39
n.a.
1,99
0,69
3,74
1,85
1,88

R&D aid as 
% of GDP
0,09
0,05
0,06
0,11
0,04
0,00
0,06
0,14
0,03
0,01
0,03
0,04
0,01
0,04
0,01
0,05

A
B
D
DK
E
EL
F
FIN
I
IRL
L
NL
P
S
UK
EU

Note:  All  data,  with  the  exception  of  labour  productivity,  are  averages  for  1997-1999.  Only  patents  that
have been registered at the European Patent Office are considered. Data on overall R&D expenditure are
not available for Luxembourg. State aid data on R&D are not collected within the regular guidelines and
standards  of  R&D  surveys  (Frascati  Manual)  and  any  comparison  might  therefore  contain  inaccuracies.
Data  on  R&D  aid  exclude  R&D  aid  given  in  the  context  of  regional  aid.  Source:  DG  Competition,
Research and Eurostat.

A  future  further  in-depth  analysis  of  the  effectiveness  of  R&D  aid  might  also  take
advantage  of  some  of  the  indicators,  which  were  collected  as  part  of  the  first  phase  of
benchmarking of national research policies. In particular, a wider range of the indicators
used to benchmark national research policies related to public and private investment into
R&D  and  to  benchmark  scientific  and  technological  productivity  could  be  helpful  to
achieve a better understanding of possible interactions between R&D aid and economic
performance.

19

The  following  publications  should  be  consulted  in  order  to  obtain  a  deeper  analysis  of
general  R&D  policy  in  the  Member  States:  European  Commission  (2001):  ‘Towards  a
European Research Area: Key figures 2001; Special edition; Indicators on benchmarking
of  national  research  policies’  and  European  Commission  (2001):  ‘European  Innovation
Scoreboard’. Internet addresses:
http://europa.eu.int/comm/research/area/benchmarking2001.pdf
http://www.cordis.lu/innovation-smes/scoreboard/scoreboard_2001.htm

20

7. 

STATE AID FORA

This  chapter  contains  internet-links  to  information  on  State  aid  policy  issues  of  the
Member States and the European Parliament.

An  overview  of  the  legal  framework  of  State  aid  control  is  provided  on  the  Union’s
Internet server EUROPA:

http://europa.eu.int/comm/competition/state_aid/legislation/

7.1.  Member State Forum

An  important  component  of  a  peer  review  process  that  the  Commission  wishes  to
encourage  by  way  of  the  Scoreboard  is  a  transparent  exchange  of  information  between
Member States on various aspects of their respective State aid/Competition policies. The
Scoreboard is therefore designed to provide links to relevant Internet sites operated by or
on behalf of the Member States. In this way the profile of information already provided
to the public by Member States on their aid policies should be increased.

In  addition  to  information  already  published  in  the  Member  State  Forum  in  the  first
edition of the Scoreboard, the latest developments in Member States are described below.

France has created one national and various regional commissions whose mission is both
to evaluate the economic and social impacts of State aid awarded to undertakings and to
control its use with a view to improve its effectiveness (Loi no. 2001-7 du 4 Janvier 2001
relative  au  contrôle  des  fonds  publics  accordés  aux  entreprises,  publiée  au  Journal
Officiel no. 4 du 5 Janvier 2001 page 218; Décret no. 2001-483 du 6 Juin 2001 rélatif à la
Commission  nationale  et  aux  commissions  régionales  des  aides  publiques  aux
entreprises, publiée au Journal Officiel du 7 Juin 2001 page 8999). These legislative acts
can be consulted on the internet-site of the "Journal Officiel de la République Française":

http://www.legifrance.gouv.fr/

Germany has recently published its 18th biannual Report on Subsidies.

http://www.bundesfinanzministerium.de/Anlage6738/Beiheft-zum-18.-
Subventionsbericht.pdf  and  http://www.bundesfinanzministerium.de/Anlage6737/18.-
Subventionsbericht-der-Bundesregierung.pdf .

7.2. 

European Parliament Forum

Documents  of  the  European  Parliament  on  State  aid  policy  can  be  found  under  the
Internet  address:  http://www.europarl.eu.int/committees/econ_home.htm.
following 

21

Technical annex

22

All State aid data refer to the implementation of Commission decisions and not cases that are
still under examination, which once decided upon, may have an effect on historical data. State
aid expenditure is attributed to the year it was made. In cases that result in expenditure over a
number of years, the total amount is attributed to each of the years in which expenditure took
place.

_______________________________________________________________________

Graph 1

Source:

DG Competition database on State aid expenditure in the Member States. Gross
Domestic Product at market prices taken from the Eurostat database Newcronos.

Remarks: All data are expressed in million Euro at constant 1998 values.

Data:

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

Total State aid

1997

1998

1999

2.304
3.122
1.531
29.089
1.608
6.307
2.074
19.617
722
16.580
162
2.935
2.054
1.739
8.291
98.133

2.175
3.117
1.536
27.503
1.210
6.219
2.060
18.559
1.133
13.700
245
3.054
1.331
1.899
8.121
91.863

2.061
3.217
1.975
23.555
1.096
5.734
1.848
15.311
1.339
10.537
246
3.489
1.219
1.739
6.294
79.660

1997
183.183
217.870
151.336
1.883.194
105.249
501.967
109.539
1.254.607
70.979
1.047.752
15.606
337.875
95.693
205.933
1.226.739
7.383.993

GDP

1998
188.452
223.749
155.190
1.921.864
108.464
523.647
115.532
1.293.104
77.052
1.063.825
16.389
351.620
99.004
212.003
1.259.035
7.610.830

1999
192.378
229.432
157.790
1.951.751
112.108
544.715
120.177
1.330.890
84.627
1.078.948
17.618
365.215
101.879
220.023
1.286.225
7.817.449

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

_______________________________________________________________________

23

Graph  1a:  Percentage  change  of  State  aid  less  agriculture,  fisheries  and  railway
transport by Member State between 1997 and 1999.

Source:

DG Competition database on State aid expenditure in the Member States. Gross
Domestic Product at market prices taken from the Eurostat database Newcronos.

Remarks: All data are expressed in million Euro at constant 1998 values.

P

GR

I

F

D

E

FIN

L

UK

A

NL

S

B

DK

IRL

EU

-1,0%

-0,8%

-0,6%

-0,4%

-0,2%

0,0%

0,2%

0,4%

0,6%

Data:

State aid to manufacturing and services 

1997

1998

1999

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

578
752
825
17.112
1.090
3.557
509
10.168
488
9.659
49
632
1.716
512
3.665
51.313

522
807
938
15.629
544
3.644
489
9.770
904
6.959
52
592
1.006
559
4.101
46.517

511
854
992
12.436
416
3.017
451
6.144
854
3.900
40
604
836
559
2.810
34.424

1997
183.183
217.870
151.336
1.883.194
105.249
501.967
109.539
1.254.607
70.979
1.047.752
15.606
337.875
95.693
205.933
1.226.739
7.383.993

GDP

1998
188.452
223.749
155.190
1.921.864
108.464
523.647
115.532
1.293.104
77.052
1.063.825
16.389
351.620
99.004
212.003
1.259.035
7.610.830

1999
192.378
229.432
157.790
1.951.751
112.108
544.715
120.177
1.330.890
84.627
1.078.948
17.618
365.215
101.879
220.023
1.286.225
7.817.449

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

_______________________________________________________________________

24

Graph 2

Source:

DG Competition database on State aid expenditure in the Member States.
Gross Domestic Product at market prices taken from the Eurostat database
Newcronos.

Remarks:

All data are expressed in million Euro at constant 1998 values.

Data:

State aid data for 1999

A

Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
DK Total state aid

B

D

EL

Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
FIN Total state aid

E

F

Agriculture and Fisheries
Railways
Manufacturing and Coal
Services
Total state aid
Agriculture and Fisheries
Railways
Manufacturing and Coal
Services

2.061 IRL

905
646
475
36
3.217 I
278
2.085
838
16
1.975 L
248
735
963
29
23.555 NL
1.598
9.520
12.291
145
1.096 P
165
515
409
7
5.734 S
1.367
1.349
2.971
46
1.848 UK
1.358
39
439
12
15.311 EU
3.102
6.065
5.096
1.048

1.339
354
131
658
196
10.537
1.675
4.962
3.620
280
246
29
177
37
3
3.489
1.121
1.764
555
49
1.219
287
96
771
65
1.739
363
818
462
97
6.294
1.123
2.361
2.564
246
79.660
13.972
31.263
32.149
2.275

_______________________________________________________________________

25

Graph  2a:  Distribution  of  State  aid  to  main  areas  of  the  economy  less  agriculture,
fisheries and railway transport as percentage of national GDP.

Source:

DG Competition database on State aid expenditure in the Member States.
Gross Domestic Product at market prices taken from the Eurostat database
Newcronos.

Remarks:

All data are expressed in million Euro at constant 1998 values.

E U  a v e ra g e

N L

U K

L

S

A

I

G R

B

F IN

F

E

D K

D

P

IR L

0 ,0 %

0 ,4 %

0 ,8 %

1 ,3 %

Data:

M a n u fa c tu rin g , C o a l

S e rv ic e s

State aid data for 1999

A

B

State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services
State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services

DK State aid to manufacturing, coal and services

D

EL

E

Manufacturing and Coal
Specific Services
State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services
State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services
State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services

FIN State aid to manufacturing, coal and services

F

Manufacturing and Coal
Specific Services
State aid to manufacturing, coal and services
Manufacturing and Coal
Specific Services

511 IRL
475
36
854 I
838
16
992 L
963
29
12.436 NL
12.291
145
416 P
409
7
3.017 S
2.971
46

451 UK
439
12
6.144 EU
5.096
1.048

854
658
196
3.900
3.620
280
40
37
3
604
555
49
836
771
65
559
462
97
2.810
2.564
246
34.424
32.149
2.275

_______________________________________________________________________

26

Table 0: State aid in Euro per person employed

Source:

DG Competition database on State aid expenditure in the Member States.
Data on employment are taken from the Eurostat database Newcronos.

Remarks:

All data are expressed in Euro at constant 1998 values.

State aid per person employed

in Euro
A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

1997 -1999
550
830
622
712
338
416
914
772
706
607
912
406
326
436
280
563

_______________________________________________________________________

Graph 3

Source:

State  aid data are taken  from  the  DG  Competition  database  on  State  aid
expenditure in the Member States.

Remarks:

All data are expressed in million Euro at constant 1998 values.

27

State aid granted for horizontal objectives

1997

1998

1999

1997

1998

1999

A R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

B R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

DK R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

D R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

EL R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

E R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

FIN R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

F R&D

Environmental protection
SME
Energy saving
Commerce of SME
Employment
Training

Total aid less agriculture, fisheries and railways

Total of the above

177
50
88
4
0
30
0
349
578
129
2
110
1
8
106
10
363
752
163
223
24
138
46
2
105
703
825
1.206
129
1.415
153
7
78
48
3.035
17.112
0
0
0
0
0
0
0
0
1.090
234
15
244
23
2
97
544
1.159
3.557
152
5
77
10
55
49
0
347
509
1.251
31
297
21
107
6
0
1.713
10.168

155
55
62
1
0
4
0
278
522
99
10
127
1
4
101
46
387
807
166
259
7
140
37
128
148
883
938
1.260
142
1.328
152
3
185
32
3.101
15.629
0
0
23
0
10
0
0
33
544
200
15
257
25
2
86
616
1.201
3.644
157
5
72
54
35
50
0
373
489
1.145
30
238
21
138
6
0
1.578
9.770

IRL

I

L

NL

P

S

UK

EU

146
55
53
2
0
21
0
277
511
148
5
213
0
3
98
33
500
854
157
248
8
162
25
146
183
929
994
1.239
114
1.061
148
4
183
35
2.784
12.436
0
2
17
0
9
0
0
29
416
219
19
220
27
1
175
638
1.299
3.017
166
7
59
57
33
37
0
357
451
1.159
30
270
48
136
6
0
1.649
6.144

14
0
5
3
5
72
24
122
488
340
11
820
45
6
12
0
1.234
9.659
3
2
8
0
0
0
0
14
49
141
80
21
187
30
0
0
460
632
13
0
10
11
1
27
69
130
1.716
88
30
44
26
0
27
22
237
512
158
1
333
24
100
0
1.301
1.917
3.665
4.067
580
3.495
646
367
507
2.122
11.783
51.313

10
0
3
2
3
73
19
112
904
186
21
599
15
2
340
0
1.163
6.959
4
2
11
0
0
0
0
17
52
152
93
20
155
34
0
0
455
592
12
0
26
8
0
33
75
155
1.006
98
101
41
23
0
5
17
285
559
105
10
296
22
89
0
1.139
1.662
4.101
3.750
744
3.111
619
358
1.010
2.092
11.684
46.517

13
0
4
5
3
112
21
158
854
306
15
647
21
0
307
0
1.296
3.900
6
2
11
0
0
0
0
19
40
149
74
24
151
7
0
0
405
604
12
0
32
8
0
43
69
164
836
81
148
27
39
0
0
19
314
559
97
9
280
22
87
0
1.325
1.821
2.810
3.897
729
2.925
689
309
1.127
2.325
12.001
34.427

_______________________________________________________________________

28

Graph 4

Source:

State aid data are taken from the DG Competition database on State aid
expenditure in the Member States.

Remarks:

All data are expressed in million Euro at constant 1998 values.

Data:

A Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

B Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

DK Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

D Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

EL Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

E Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

FIN Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

F Manufacturing
Services
Coal mining

Total aid less agriculture, fisheries and railways

Total of the above

State aid granted to specific sectors

1997

1998

1999

1997

1998

1999

12
28
0
40
578
2
10
0
12
752
84
22
0
107
825
584
170
5.379
6.133
17.112
23
390
0
413
1.090
778
47
1.084
1.909
3.557
85
14
0
98
509
206
3.603
967
4.775
10.168

13
43
0
55
522
1
11
0
12
807
13
27
0
40
938
439
158
4.787
5.384
15.629
21
43
0
64
544
874
43
1.159
2.076
3.644
33
15
0
48
489
460
4.510
999
5.969
9.770

IRL

I

L

NL

P

S

UK

EU

12
36
0
47
511
1
16
0
17
854
21
29
0
50
994
346
145
4.535
5.026
12.436
0
7
0
7
416
220
46
1.036
1.302
3.017
9
12
0
21
451
672
1.048
975
2.695
6.144

5
142
0
146
488
357
980
0
1.337
9.659
0
0
0
0
49
21
22
0
43
632
62
251
0
313
1.716
0
91
0
91
512
12
265
495
772
3.665
2.231
6.036
7.924
16.191
51.313

4
157
0
162
904
289
1.457
0
1.746
6.959
0
3
0
3
52
23
23
0
46
592
16
41
0
57
1.006
0
97
0
97
559
10
262
1.317
1.590
4.101
2.195
6.891
8.262
17.348
46.517

4
196
0
200
854
152
280
0
432
3.900
0
3
0
3
40
15
49
0
65
604
25
65
0
90
836
0
97
0
97
559
0
246
0
246
2.810
1.478
2.275
6.546
10.298
34.427

_______________________________________________________________________

29

Table 1

Source:

Remarks:

Data:

State  aid data are taken  from  the  DG  Competition  database  on  State  aid
expenditure  in  the  Member  States.  Regional  GDP  data  at  market  prices
taken  from  the Eurostat database Newcronos. Data on aid  granted  under
Regional  Fund  (objective  1  interventions)  are  taken  firm  the  Structural
Funds Annual Reports 1996,1997 and 1998.

All data are expressed in million Euro at constant 1998 values. Regional
GDP  data  have  been  selected  at  NUTS  3  level.  GDP  data  for  Italy  are
only available at NUTS 2 level.

Regional aid
1996

1997

1998

Aid element of the Regional Fund, Objective 1 interventions 

1996

1997

1998

F

E

A

D

EL

Aid under 87(3)a
Aid under 87(3)c
Total regional aid
Aid under 87(3)c
B
DK Aid under 87(3)c
Aid under 87(3)a
Aid under 87(3)c
Total regional aid
Aid under 87(3)a
Aid under 87(3)a
Aid under 87(3)c
Total regional aid
FIN Aid under 87(3)c
Aid under 87(3)a
Aid under 87(3)c
Total regional aid
IRL Aid under 87(3)a
Aid under 87(3)a
Aid under 87(3)c
Total regional aid
Aid under 87(3)c
Aid under 87(3)c
Aid under 87(3)a
Aid under 87(3)c
Aid under 87(3)a
UK Aid under 87(3)c
Total regional aid
Aid under 87(3)a
Aid under 87(3)c
Total regional aid

L
NL
P
S

EU

I

A
D
EL
E
F
IRL
I
P
UK
EU

0,0
152,6
196,8
468,6
22,6
100,6
278,8
311,7
42,0
1.573,7

6,7
240,9
290,2
459,7
16,5
18,8
335,6
275,8
52,0
1.696,2

5,1
339,9
369,7
328,6
50,6
128,2
307,6
376,6
42,7
1.949,0

31
93
124
258
13
8.868
742
9.609
601
90
197
287
67
506
766
1.272
206
6.398
127
6.524
31
82
633
208
210
725
935
17.543
3.309
20.851

30
134
163
229
15
7.165
727
7.891
677
85
219
303
63
650
1.300
1.950
197
6.548
128
6.676
35
77
1.187
185
256
719
976
16.794
3.832
20.625

31
141
172
214
15
6.339
768
7.107
447
88
239
327
68
847
1.341
2.188
175
3.593
184
3.778
32
71
706
177
253
595
849
12.480
3.845
16.325

30

1996

1997

1998

IRL

57514

70581

77052

57514

70581

77052

57514

70581

77052

0

0
0

I
971065

0

0
0

0

0
0

1028273

1063828

950092

1006357

1040762

209537

223789

231255

0

0

0

740555
20973

L

782569
21916

809508
23065

14339

15409

16389

14339

15409

16389

0

0

0

0

0

0

14339
0

NL
324479

15409
0

16389
0

332654

351621

69381

70610

73148

0

0

0

11029

11180

11740

58352
255095
P

88828

59430
262046

61408
278469

93568

99124

88828

93568

99125

88828

93568

99125

0

0
0

0

0
0

0

0
0

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

1996

A
182363

1997

181819

50755

50832

3907

3879

13994

14113

32855
131608
B
211910

32840
130987

215305

137087

138923

0

0

1283

1301

135804
74823

DK
144155

137622
76382

148586

57681

59352

0

0

11986

12214

45695
86474
D

47138
89234

1878200

1866496

512915

505883

214792

211985

298123

293898

0
1365289
EL

97972

0
1360615

107009

97973

107010

97973

107010

0

0
0

0

0
0

GDP data
1998

53119

188723 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c

14878

34247

3995

135604 Non assisted regions

144255

223569 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c

142904

1351

0

79314 Non assisted regions

61801

155191 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c

49069
93390 Non assisted regions

12732

0

515934

1921866 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c

214826

301108

0

1405935 Non assisted regions

108465

108465

108464 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
0
0 Non assisted regions

0

31

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
Non assisted regions

E

480535,6

494672,1

480536

494672

232492

237943

40382

41691

207662
0

FIN
100523

215038
0

108072

100523

108072

10294

10946

6946

7436

83284
0

F
1224606,3

89690
0

1241129,2

737398

749570

18120

18306

75457

76892

643820
487208

654372
491560

523647

523646,3 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
0 Non assisted regions

227977

250908

44761

115256

115257 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c
0 Non assisted regions

96005

11485

7766

783455

1293104 total GDP
of which
total GDP of
assisted regions
Totally assisted regions
under Art. 87.3.a
Totally assisted regions
under Art. 87.3.c
Partially assisted regions
under Art. 87.3.c

683814
509649 Non assisted regions

19137

80505

S
206273

210815

213702

90578

89775

90042

0

0

0

20490

20977

21029

70088
115695
UK
929049

68799
121040

69013
123660

1163365

1259035

447544

554555

595596

57735

71435

76434

21164

26639

28223

368645
481506
EU
6911813

456482
608810

490939
663440

7277758

7610570

3893143

4115169

4298046

991191

1049441

1092681

500853

506341

524093

2401099
3018670

2559387
3162590

2681273
3312524

32

Graph 5

Source:

Remarks:

Data:

State aid data are taken from the DG Competition database on State aid
expenditure in the Member States.

All data are expressed in million Euro at constant 1998 values.

Total aid granted to specific service sectors

1997

1998

1999

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU
_______________________________________________________________________

28
10
27
158
43
43
15
4.510
157
1.457
3
23
41
97
262
6.875

28
10
29
145
7
46
12
1.048
196
280
3
49
65
97
246
2.261

28
10
22
170
390
47
14
3.603
142
980
0
22
251
91
265
6.036

Graph 6

Source:

Remarks:

Commission's registration register
XXVIIIth Report on Competition policy1998.
XXVIXth Report on Competition Policy 1999.

The following decision types, according to the Procedural Regulation
659/99 (OJ 83/1 of 27.03.1999), have not been taken into account for this
table:
- Injunction decisions
- Decisions to open proceedings
- Decisions to close proceedings because of withdrawal of notification
- Appropriate measures to modify existing aid measures
- Referral to the Court of Justice or Council

State aid decisions concerning the fisheries sector are not included in this
table.

33

Data

A pp roval
without 
ob jections

C losing of proceedings with a:

P ositive
d ecision

C onditional
decision 

N egative
decision

C losing 
decisions 
as %  
of total

N egative 
d ecisions 
as %  
of total

A

B

D K

D

H

E

F IN

F

IR L

I

L

N L

P

S

U K

E U

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

1998

1999

2000

A verage

33

25

31

30

29

47

23

33

16

14

11

14

120

94

95

103

18

11

9

13

73

92

104

90

11

11

22

15

21

21

58

33

5

16

17

13

87

110

92

96

1

3

4

3

56

39

48

48

18

16

16

17

16

10

13

13

31

30

28

30

535

539

571

548

0

0

2

1

0

1

0

0

2

1

0

1

8

15

9

11

1

3

0

1

1

3

3

2

0

1

2

1

2

2

0

1

5

1

2

3

2

10

7

6

0

0

0

0

1

2

1

1

1

0

1

1

1

1

1

1

0

2

0

1

24

42

28

31

1

0

0

0

0

0

0

0

0

0

0

0

1

1

1

1

0

0

0

0

0

0

1

0

0

0

0

0

2

0

0

1

0

0

0

0

4

1

1

2

0

0

0

0

0

1

1

1

0

0

0

0

0

0

0

0

0

0

0

0

8

3

4

5

4

2

0

2

1

0

5

2

0

0

0

0

16

14

12

14

2

3

1

2

6

5

8

6

0

0

0

0

2

3

4

3

1

0

1

1

7

14

15

12

1

0

0

0

1

1

5

2

0

1

1

1

0

0

1

0

0

1

0

0

41

44

53

46

13,2

7,4

6,1

9,2

3,3

2,1

17,9

6,6

11,1

6,7

0,0

6,8

17,2

24,2

18,8

19,9

14,3

35,3

10,0

20,8

8,8

8,0

10,3

9,1

0,0

8,3

8,3

6,4

22,2

19,2

6,5

13,0

54,5

5,9

15,0

20,8

13,0

18,5

20,0

17,4

50,0

0,0

0,0

11,1

3,4

9,3

12,7

8,3

5,3

5,9

11,1

7,4

5,9

9,1

13,3

9,3

0,0

9,1

0,0

3,3

12,0

14,2

13,0

13,1

10,5

7,4

0,0

6,1

3,3

0,0

17,9

5,7

0,0

0,0

0,0

0,0

11,0

11,3

10,3

10,9

9,5

17,6

10,0

12,5

7,5

5,0

6,9

6,4

0,0

0,0

0,0

0,0

7,4

11,5

6,5

7,8

9,1

0,0

5,0

4,2

7,0

10,4

13,0

10,3

50,0

0,0

0,0

11,1

1,7

2,3

9,1

4,5

0,0

5,9

5,6

3,7

0,0

0,0

6,7

2,3

0,0

3,0

0,0

1,1

6,7

7,0

8,1

7,3

_______________________________________________________________________

34

Table 2, Graph 7, Table 3 and decision process

Source:

Remarks:

DG Competition.

Notified  aid:  A  sample  of  96  recent  decisions  not  to  raise  objections  on
notified  aid  cases  in  the  sectors  other  than  agriculture,  fisheries  and
transport was taken.

Non-notified  aid:  All  decision  to  launch  the  formal  investigation
procedure  for  cases  in  sectors  other  than  agriculture,  fisheries  and
transport which were published in the Official Journal between June 2000
and June 2001 were analysed.

_______________________________________________________________________

Graph 8

Source:

Remarks

Data:

State  aid data are taken  from  the  DG  Competition  database  on  State  aid
expenditure in the Member States. R&D expenditure data taken from the
Eurostat database.

A  fourth  sector  (the  private  non-profit  sector)  is  generally  of  negligible
significance with the exception of Portugal where the sector accounted for
more than 10% in 1999. The breakdown has been calculated without this
sector.  The  averages  have  been  calculated  on  the  basis  of  the  available
data.  A  breakdown  of  R&D  expenditure  by  institutional  sector  is  not
available for Austria and Luxembourg.

R&D aid as % of GDP

1997

1998

1999

0,10
0,06
0,11
0,06
0,00
0,05
0,14
0,10
0,02
0,03
0,02
0,04
0,01
0,04
0,01
0,06

0,08
0,04
0,11
0,07
0,00
0,04
0,14
0,09
0,01
0,02
0,03
0,04
0,01
0,05
0,01
0,05

0,08
0,06
0,10
0,06
0,00
0,04
0,14
0,09
0,01
0,03
0,03
0,04
0,01
0,04
0,01
0,05

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

R&D expenditure as a percentage of GDP
1997

1998

1999

1997

1998

1999

IRL

B
Total R&D expenditure
     - Business
     - Government
     - Higher education

DK

Total R&D expenditure
     - Business
     - Government
     - Higher education

D
Total R&D expenditure
     - Business
     - Government
     - Higher education

EL
Total R&D expenditure
     - Business
     - Government
     - Higher education

E
Total R&D expenditure
     - Business
     - Government
     - Higher education

FIN

Total R&D expenditure
     - Business
     - Government
     - Higher education

F
Total R&D expenditure
     - Business
     - Government
     - Higher education

1,88
1,34
0,06
0,45

1,94
1,19
0,30
0,43

2,29
1,54
0,34
0,41

0,51
0,13
0,12
0,26

0,82
0,40
0,14
0,27

2,72
1,79
0,37
0,54

2,22
1,39
0,41
0,39

1,90
1,35
0,07
0,46

2,02
1,32
0,29
0,41

2,31
1,57
0,34
0,40

n.a.
n.a.
n.a.
n.a.

0,90
0,47
0,15
0,27

2,89
1,94
0,36
0,57

2,17
1,35
0,40
0,38

1,98 Total R&D expenditure
1,42      - Business
0,07      - Government
0,47      - Higher education

I
2,00 Total R&D expenditure
1,25      - Business
0,31      - Government
0,42      - Higher education

NL
2,44 Total R&D expenditure
1,69      - Business
0,34      - Government
0,41      - Higher education

P
n.a. Total R&D expenditure
n.a.      - Business
0,15      - Government
0,34      - Higher education

S
0,89 Total R&D expenditure
0,46      - Business
0,15      - Government
0,27      - Higher education

UK

3,19 Total R&D expenditure
2,18      - Business
0,39      - Government
0,63      - Higher education

EU
2,19 Total R&D expenditure
1,38      - Business
0,40      - Government
0,38      - Higher education

1,39
1,01
0,10
0,27

0,99
0,52
0,20
0,26

2,04
1,11
0,37
0,56

0,62
0,14
0,15
0,25

3,68
2,75
0,13
0,79

1,84
1,20
0,25
0,36

1,86
1,19
0,28
0,39

n.a.
n.a.
0,09
0,27

0,99
0,52
0,22
0,25

1,94
1,05
0,36
0,53

n.a.
n.a.
n.a.
n.a.

3,75
2,85
0,13
0,76

1,83
1,21
0,24
0,36

1,87
1,19
0,28
0,38

n.a.
n.a.
0,07
n.a.

1,04
0,56
0,22
0,26

n.a.
n.a.
n.a.
n.a.

0,76
0,17
0,21
0,29

3,80
2,86
0,13
0,81

1,87
1,27
0,20
0,38

1,92
1,25
0,27
0,39

______________________________________________________________________

35

Graph 9

Source:

Data:

State  aid data are taken  from  the  DG  Competition  database  on  State  aid
expenditure in the Member States. Venture capital (early stage) data taken
from the Eurostat database.

Venture capital as % of GDP

1997

1998

1999

0,00%
0,01%
0,00%
0,01%
0,01%
0,00%
0,01%
0,01%
0,00%
0,01%
n.a.
0,05%
0,01%
0,00%
0,01%
0,01%

0,01%
0,06%
0,01%
0,02%
0,00%
0,01%
0,05%
0,02%
0,03%
0,01%
n.a.
0,05%
0,01%
0,01%
0,01%
0,02%

0,01%
0,09%
0,02%
0,05%
0,02%
0,02%
0,06%
0,04%
0,05%
0,01%
n.a.
0,10%
0,01%
0,11%
0,02%
0,04%

A
B
DK
D
EL
E
FIN
F
IRL
I
L
NL
P
S
UK
EU

______________________________________________________________________

Table 4

Source:

State  aid data are taken  from  the  DG  Competition  database  on  State  aid
expenditure in the Member States. Data on patents, R&D expenditure and
labour productivity taken from the Eurostat database.

______________________________________________________________________

36