European Union companies received €86 billion in subsidies in 2001, the highest level since 1998, despite repeated pledges by governments to reduce state aid, according to the latest figures.
The European Commission's State Aid Scoreboard, to be published this week, will increase pressure on the Brussels authorities to crack down on government aid to industry.
It is understood the scoreboard will show that state aid across the EU rose to €86.1 billion in 2001, just under 1 per cent of EU GDP, from €85.2 billion in 2000. The increase came in the year EU leaders pledged at their Stockholm summit to reduce state aid as a percentage of EU GDP by the end of 2003.
The UK was the biggest contributor to the increase among the EU's 15 members, with a 70 per cent rise in the amount of subsidies granted to €10.5 billion.
The scoreboard does not specify the reasons for the rise in the UK, which is surprising as Britain has traditionally been a low state-aid country.
However, competition experts said part of the rise could be due to the €5.7 billion aid package for Railtrack, the failed railway operator, which was announced in 2001
The impact of the Railtrack aid seems to be confirmed by the rise in the EU-wide level of aid to the transport sector from €34 billion in 2000 to €39 billion in 2001.
The overall increase in the EU in 2001 is modest but runs counter to several promises by EU leaders to reduce state aid, which is seen as anti-competitive and protectionist by many companies and regulators.
