Press Release: State aid: Commission endorses aid to Rolls-Royce Germany

The European Commission authorised, under EC Treaty State aid rules, financial support Germany intends to grant to Rolls-Royce Deutschland Ltd. & Co KG. The aid will be given for the experimental development of a new jet engine. The Commission found the aid to be in line with the criteria laid down in its Framework for Research and Development and Innovation (R&D&I Framework, see IP/06/1600 and MEMO/06/441). The Commission's assessment showed that the aid would address a genuine market failure, namely the private sector's reluctance to provide sufficient risk-sharing capital for such projects, due to imperfect and asymmetric information. The Commission also found that the aid amount, as well as its repayment depending on the success of the project, would ensure that it is appropriate and limited to the minimum necessary. The amount of aid involved is a business secret.