Murray Ritchie writes from Brussels: The new map was published after
the EC Commission gave its formal approval, ending weeks of wrangling
with the Government.
EC approval is required for all assisted areas in the Community to
ensure that state aids do not breach European competiton law.
Various objections had been raised by the Commission, mainly involving
the Government's methods of compiling statistics tending to support the
need to include areas in the Tory strongholds in the South.
In a statement timed to coincide with publication of the map in the
UK, the Commission said it had decided not to raise any objections. This
followed several negotiating sessions with Mr Sainsbury, deputising
during Mr Michael Heseltine's recuperation.
Mr Karel van Miert, EC Commissioner for Competition, said the EC
executive had remained faithful to its policy of restricting coverage of
eligible regions to those in greatest need, to avoid excessive disperal
of aid and a subsidy race.
''Both would be harmful to Community firms as a whole while taking
account of recent economic trends,'' Mr Van Miert said.
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