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EU spends more on the environment, but big differences remain

Posted : Wed, 21 May 2008 11:47:02 GMT
Author : DPA
Category : Environment
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Brussels - European Union governments are increasingly resorting to state aid to protect the environment, but spending in heavyweight countries France, Britain and Italy is still well below the bloc's average, figures published on Wednesday showed. According to a report by the European Commission, total state aid expenditure for environmental purposes by the EU's 27 countries has doubled between 2001 and 2006 to 14 billion euros (22 billion dollars).

However, the overall figure conceals huge differences between member states in terms of spending as a percentage of gross domestic product (GDP).

Germany, Denmark and Sweden, for instance, spent between 0.32 and 0.77 per cent of their GDP on environmental aid between 2004 and 2006.

But the ratio was 0.06 per cent in Britain, 0.01 in France and close to zero in Italy.

Slovakia, Estonia and Bulgaria spent no money at all on environmental aid over that period, while the EU average amounted to 0.12 per cent.

State aid for environmental purposes can take many forms, for instance through tax exemptions or funds for renewable energy and energy-saving initiatives.

In 2000, EU governments agreed to reduce the general level of state aid that they provide and to better target it towards specific projects which help employment, regional development, training and the environment.

"It is encouraging that member states are focussing their aid on environmental measures," said Neelie Kroes, the EU's competition commissioner.

Figures released by the commission also showed that the EU executive had recovered some 9 billion euros in illegal state aid from member states between 2000 and 2007.

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