Press Release: State aid: Commission adopts new method for setting reference and discount rates

The European Commission has adopted a new method for setting reference and discount rates used in the analysis of state aid cases for calculating the grant equivalent of aid and the aid element resulting from interest subsidy schemes. The new method is more in conformity with market principles as it contains a system to take account of the specific situation of the company or project and will thus contribute to a better economic approach to state aid analysis, as announced in the State Aid Action Plan (see IP/05/680 and MEMO/05/195). It will enter into force on 1 July 2008.