Biotech sector asks for relaxation of EU rules on state aid

The European biotech sector has asked members of the European Parliament members (MEPs) and member states to relax EU rules on state aid in order to favour young innovative companies.

EuropaBio, the European biotech association, organised a meeting between 10 national delegations from the pharmaceuticals sector and about 50 MEPs and member state representatives. Each delegation comprised representatives of a national association (Spain, France, UK, Germany, the Netherlands, Finland, Sweden, Belgium, Hungary and Norway) and one or several SME directors.

Concerning state aid, the biotech sector is asking that the EU's ceiling of e100,000 per company be raised to e3m, according to a EuropaBio spokeswoman. Biotech SMEs are also asking for increased access to European investment funds. They also support the idea that EU funding of a project under the European Commission's 7th framework programme for research and innovation should be raised from 50% to 75%.

As well as state aid and measures to create a 'European young innovatory company' status, participants also discussed funding aid for biotech SMEs and the EMEA budget.

Participants also voiced concern over a possible stagnation in the EMEA's budget and the impact that this would have on incentives set up for SMEs last year. Since 2005, SMEs have benefited from a 90% reduction in certain EMEA fees, plus other incentives. Ninety companies have benefited from these measures since they came into effect, according to data from the EMEA's SME Office.

The European Commission's contribution to the EMEA budget may not be increased in 2007, despite the fact that the agency will have more tasks to carry out. The EU budget is being debated in the European Parliament.