State aid: Commission approves public support scheme for research and development in aeronautic sector in Germany

The European Commission has approved, under EU State aid rules, a German aid scheme encouraging research and development projects of small and medium enterprises (SMEs) and of large firms in the aeronautic sector. This scheme follows a previously approved measure that expired at the end of 2018.The new scheme, with an average annual budget of about €200 million, will run until 2026. The Commission assessed the measure under EU State aid rules, in particular the 2014 Framework for Research, Development and Innovation. The Commission found that the scheme addresses the identified market failure and enhances research, development and innovation in the sector. In addition, the Commission found that safeguards preventing the measure from unduly distorting competition or adversely affecting trade between Member States are in place. Furthermore, large projects will have to be notified to the Commission individually. In addition, the scheme will be the subject of a detailed ex-post evaluation by independent experts, to assess its effectiveness and impact on competition. On this basis, the Commission concluded that the scheme is in line with EU State aid rules. More information will be available on the Commission’s competition website in the public case register under the case number SA.55829 once any confidentiality issues have been resolved.