The European Union (EU) multiplied its overall state aid in result of the financial crisis, the European Commission's latest State Aid Scoreboard showed on Monday.

The EU's overall state aid was multiplied from 66.5 billion euros (US$98.44 billion) or 0.52 percent of its GDP in 2007 to 279.6 billion euros (US$413.9 billion) or 2.2 percent of GDP in 2008, showed a report of the European Commission's benchmarking instrument for state aid.

By allowing swift implementation of unprecedented support measures, the EU executive Commission ensured that the Single Market was not disrupted by disproportionate distortions of competition.

"In the past 14 months, unprecedented rescue measures allowed Europe to stabilize financial markets and help to pave the road to recovery. By vetting this aid quickly, and strictly controlling its use, we have ensured state aid is part of the solution to the crisis," said Competition Commissioner Neelie Kroes.

The Commissioner hailed the member states efforts at "maintained state aid discipline and continued their efforts to re-direct aid for horizontal objectives of common interest such as research. Well-targeted aid should thus continue to help us move along the road to economic recovery."

Under the EC treaty state aid rules, state aid is generally prohibited. However, the treaty leaves room for a number of policy objectives for which state aid can be considered compatible. The EC has established a worldwide unique system of rules under which state aid is monitored and assessed in the European Union.

(Xinhua News Agency December 8, 2009)