Report on policies promoting research and development to be discussed at Ecofin Council, 22 January

Brussels, 21 January 2002

(Extracted from "Preparation of Eurogroup and Council of Economics and Finance Ministers" - MEMO/02/7 )

Ministers will discuss an EPC (Economic Policy Committee) report on research and development policies in the Union. In the Commission's view, the links between R&D, innovation and human capital call for a renewed focus on strengthening the overall knowledge base of the EU economies.

The Commission's spring report for Barcelona highlights "investing in knowledge" as one of the three priority areas for the forthcoming European Council in Barcelona.

When assessing the value of economic incentives to R&D, including fiscal incentives, It is important to always keep in mind the general framework conditions within which R&D and innovation are generated and used. It is recalled that the Commission will propose revised rules on state aid to R&D before July 2002.