BRUSSELS, Sept 20 (Reuters) - Spanish aeronautics firm ITP, which is making a turbine for an engine developed by Rolls-Royce , won EU approval on Tuesday for 36.6 million euros ($50 million) of aid from the Spanish authorities for the project.
The European Commission, the competition regulator across the 27-country European Union, said the funds complied with EU state aid rules.
'This project will raise technological capacities in Europe, and contribute to increasing the efficiency and reducing the environmental impact of air transport,' EU Competition Commissioner Joaquin Almunia said in a statement.
'Considering ITP's limited market share, the aid will not unduly distort competition,' he added.
The funds covers 47.5 percent of the company's research and development costs related to the project connected to Rolls-Royce's Trent XWB engine. Spanish authorities said banks were reluctant to back the work financially.
British aero enginemaker Rolls-Royce Holdings Plc makes engines for planemakers Airbus and Boeing.
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