What are the main challenges for reforming state aid policy?
First, Member states need a clear, comprehensive and predictable framework to be able to grant public subsidies which contribute to competitiveness, cohesion and improving public services. State aid policy has to support the Lisbon Strategy for growth and jobs. This requires incorporating a refined economic approach into state aid control, to support a better targeting of state aid towards the types of interventions where financial markets are more reluctant to lend money that improve economic performance and competitiveness or create sustainable jobs. But this also requires improving social and regional cohesion, favouring environmental protection and promoting cultural diversity.State aid policy also needs to be adapted to the new requirements of an enlarged Europe, to be more efficient to reduce the administrative burden on Member States and to focus the action of the Commission on the areas where it really matters. There is a need to strengthen the commitment of Member States to th
