Press Release: State aid: Commission authorises France to introduce a temporary scheme to grant reduced-interest loans to businesses producing green products

The European Commission authorised under state aid rules of the EC Treaty a scheme offering reduced-interest loans to businesses investing in the production of green products. The aid is one of the measures adopted by France to tackle the current economic crisis. The scheme will support businesses faced with financing problems because of the credit squeeze, while at the same time making it easier for them to invest in products with an environmental benefit. It will allow state, regional or local authorities to grant until 31 December 2010 reduced-interest loans with a maximum term of two years. It met the conditions imposed by the Commission’s temporary state aid framework that gives Member States additional possibilities for providing businesses with improved access to financing during the economic and financial crisis. It was therefore compatible with Article 87(3)(b) of the EC Treaty, which permits aid intended to remedy a serious disturbance in the economy of a Member State.