Plannen Kroes voor hervorming staatssteun aan regio's stuiten op fel verzet in Duitsland (en)

Plans by the Competition Commissioner to overhaul the EU's state aid system have given rise to strong criticism in Germany - particularly from those areas that stand to lose most from a new system.

The Minister President of Saxony, Georg Milbradt, said Neelie Kroes' proposals were "unacceptable".

Chancellor Gerhard Schröder said he did not share Mrs Kroes' opinion, according to FT Deutschland.

The finance ministry, which oversees state aid, is also against reform. "The current state aid policy is not up for question when it concerns the new regions of the former east", said an official, according to the newspaper.

Mrs Kroes suggested in a series of interviews on Wednesday that she would thoroughly reform state aid policy. She questioned whether rich member states should continue to support poor regions.

"I am talking about less and better state aid, focusing on those regions that really need state aid ... focusing on risk capital, research and innovation and on small- and medium-sized companies", said the Dutch Commissioner.