§ Mr. FearnTo ask the Secretary of State for the Environment, Transport and the Regions what(a) legal and (b) diplomatic steps he is taking to stop European Union countries providing state subsidies to national airlines. [58474]
§ Ms Glenda JacksonApplication of the rules in the Treaty of Rome which govern state subsidies to national airlines is a matter for the European Commission. The UK Government oppose in principle all such subsidies which distort competition in the European single aviation market, and takes advantage of the limited rights granted to Member States under the Treaty, and of appropriate diplomatic opportunities, to present its views. The Commission now assesses requests for state aid more stringently than it did previously, and, when authorising aid to Alitalia in 1997, stated that it did not expect there to be any further such cases.