Press Release: State aid: Commission approves German real economy crisis measure

The European Commission approved, under EC Treaty state aid rules, a German aid measure that addresses mid-sized enterprises' increased demand for funding for research and development (R&D)- in the current financial and economic crisis. The aid measure temporarily amends the existing aid scheme 'Zentrales Innovationsprogramm Mittelstand' (ZIM), initially targeted at funding R&D activities of SMEs only. Now, R&D projects of mid-sized enterprises of up to 1,000 employees will also be eligible for funding until 31.12.2010. Germany will commit an extra budget of €900 million for that purpose. The Commission concluded that the proposed aid is in line with the EU rules on state aid for research, development and innovation because it will not exceed the prescribed limits and will provide an incentive to increase the level of R&D&I activity.