Competition Commissioner Neelie Kroes said that “the measure would ease the credit constraints on businesses affected by the current economic situation, provided that they invested in products that were more environmentally friendly. This would encourage the businesses concerned to prepare for the challenges of the future by enabling them to emerge from the crisis with a business model more consistent with EU environmental objectives.”

The scheme will allow state, regional and local authorities to grant lower-interest loans to producers investing in the ‘green production’. Set as a temporary framework, the scheme is to be applied until December 31, 2010 with a maximum term of two years. To obtain the investment the products would have to meet or exceed future Community environmental protection standards. Moreover, the applicant companies must not have been in difficulty on July 1, 2008. The interest rate may not be reduced more than 50 percent for small and medium-sized enterprises and 25 percent for large businesses.

French green project is the country’s second temporary measure in force to help to deal with the crisis after a first scheme for aid of up to Euro 500,000. The goal is to support business struggling with financial problems and bring environmental benefits. France is the first country adopting an environmentally friendly provision under the temporary framework.