This new framework is to simplify the application of measures to support innovation in shipbuilding industry in the European Union, therefore contributing to improving the competitiveness of the sector. The new rules will take effect from January 1st 2012 and will be applied over two years.

One key element of the new rules to be applied in shipbuilding is that they will clarify the criteria to determine the innovative character of a project, easing the aid granting process and ensuring the compatibility with EU state aid rules. According to the Commission's approach, this new regulation is essential to ensure the competitiveness of the shipbuilding industry in Europe.

The new framework adopted by the Commission expands the scope of existing rules to inland waterway vessels, as well as floating and moving offshore structures. Besides, those rules which have not been applied or were not specific of shipbuilding have been removed from the new framework, as it was the case for closure aids or employment aids. Rules on export credits and regional aid remain as before.

The new European framework for shipbuilding industry will enter into force from January 1st 2012 and will run for two years. The current framework applicable to European shipbuilding industry has been in force since 2004 and expires December 31 2011. After this period, it is expected that the provisions on innovation aid will be integrated in the future version of the EU Framework for State aid for research and development and innovation and the provisions on regional aid in the revised Regional Aid Guidelines.