Neelie Kroes wenst grondige hervorming van richtlijnen voor staatssteun aan arme regio's (en)

EU Competition Commissioner Neelie Kroes i has said she will undertake a thorough reform of the EU state aid rules.

In an interview with German daily FT Deutschland, Mrs Kroes said, "We need less and better state aid".

Among those areas particularly affected by the new rules will be poor regions - such as Germany's five regions from the former east - in rich member states.

"We have to ask ourselves whether we continue to support poor areas in a rich country", said the Dutch Commissioner.

Her proposals, which are to be completed by summer, will concentrate state aid more to industries which move to poor regions.

Also, in the future, the economic strength of a country will be taken into account.

At the moment, Brussels allows state aid in rich countries if it is used for the development of regions with a low living standard or with high unemployment.

Acknowledging the hard fight she is likely to have with some member states over these reforms, Mrs Kroes said, "We have to talk tough. That will sometimes hurt member states used to the old state aid".

In 2002, the European Commission allowed the 15 member states of the time around 49bn euro in state aid.