EU Commission using outdated figures for State Aid

Issued : Thursday 25 February, 2010

Ireland must apply for change in status to avail of better funding conditions.

Addressing the European Parliament in Brussels, Alan Kelly MEP, has called on the Irish government to provide an updated version of the Irish regional aid map to the Commission.

"We must seriously re-draw the regional aid map for state aid rules in Europe.

“A major concern is that when I wrote to the previous Commission on this, they were basing their policy on 2006 figures from Eurostat.

"Now that the regional aid map is up for review, it is extremely important to recognise that our economy is dramatically different to 2006.

"Taking just one example, unemployment levels in parts of the Irish Mid-West have grown by over 40% in the last year alone - not to mention 2006.

"Currently this area and many others in Ireland have state aid ceilings of just 10% as it is based on 2006 figures.

"10% is the most money we can give to companies who might set up in certain parts of Ireland.

"We must take our heads out of the sand on this matter.

"Given the dramatic turnaround in the Irish economy, the years of 2006 and 2007 might as well have been a lifetime ago.

While I recognise that it is partly up to member states to inform the Commission to any changes in their economic status, the approach of the Commission should not remain the same regardless.

"I further call on the Irish government make a submission to the Commission reviewing our state aid regional ceilings.”