Commission authorises a research and development aid scheme for public transport in Germany

The European Commission has authorised today a State aid measure by Germany aimed at supporting the development of an electronic fare management system for public transport, the so-called "e-ticketing system". The approved State aid amounts to approximately € 9.75 million and will be granted between 2007 and 2009.

The e-ticketing system will allow selling transport services via chip cards of transport companies or banks as well as through mobile phones. It should attract more consumers to use transport public services, and facilitate the use of such services by people with restricted mobility. Development of the system requires industrial research and experimental development work, which will be aided through the approved subsidies.

The Commission concluded today that the aid is consistent with the requirements of the Community Framework for State aid for research, development and innovation, adopted in 2006 (see IP 06/1600). Notably, it concludes that the aid will have an incentive effect, in that it will encourage the beneficiaries to devote more effort to research and development projects than they would otherwise, and that it respects the limits set in the framework in terms of aid amounts in comparison to eligible costs.