Press Release: Commission adopts Communication on state aid and risk capital

On 23 May 2001 the European Commission adopted a Communication on state aid and risk capital. It sets out how the Commission will assess, under the state aid rules, measures designed to promote the growth of risk capital markets. An increase in risk capital is an objective which the European Union (EU) has been pursuing particularly strongly since the Lisbon European Council in March 2000. The Commission has recognised that public funds may play a part in achieving this. At the same time, it wants to maintain a careful control on state aid within the EU, and has found that existing state aid rules are not well adapted to the types of measures which have been developed by Member States' authorities to stimulate an increase in risk capital activity.