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Joaquin Almunia: "Aid can only be approved when it has the potential to change the behaviour of recipients" (Photo: European Commission)

EU commission to tighten rules on state aid to regions

Competition and regions have always been uncomfortable policy bedfellows, but scarce public money is making it harder to draw up guidelines on when and how state aid should be invested.

In the European Commission Johannes Hahn is responsible for regional aid, a dossier devoted to reducing the income disparities between Europe's richest and poorest people.

His colleague Joaquin Alumina oversees competition and state aid. His job is to keep a lid on state aid, to stop it being hande...

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