The FIA has announced Formula One’s sweeping new financial changes at The World Motorsport Council. Most notably, the FIA has introduced a £40 million ‘budget cap’ program to guarantee the future of current teams, while creating financial intensives to entice potential new teams into Formula One. The penny pinching goes so far as to also include the banning of re-fuelling and tyre warmers for the 2010 Championship.

While not compulsory, those teams who do sign up to the program will receive numerous technical freedoms. These include unlimited wind tunnel testing and pre-season track time, along with movable front and rear wings as well as their engines being free of rev-limits. FIA President Max Mosely is quoted as saying “I think they may find it attractive because like everybody else they need to save money. They’ve got to think of their shareholders’ money, and not just spend like in the old days.” 

Supporter of the concept of a budget cap, Sir Frank Williams, has raised concerns over the optional  implementation of the initiative. “We would like to see all the teams operating to one set of regulations and under a budget cap in 2010 and that is the position we will be advocating within FOTA when we meet next week”. The Q&A media release on the FIA’s website, stated that “There is one set of technical regulations and as always there are choices for all teams as to how they decide to attack the championships,”

It is also understood that those teams considering entering Formula One, such as Aston Martin and US GPE will receive a variety of financial intensives. These include free transportation of two chassis and freight for each round held outside Europe. A move believed to be funded by  of Bernie Ecclestone’s Formula One Management (FOM) company. David Richards -chairman of  Aston Martin- welcomed the new changes, but remained cautious. “It is important for us and our partners that there is stability in the sport with broad alignment on the future direction of Formula One, and this will be a critical issue in our decision making process” he said.

In another technical change, the minimum starting weight of cars has been increased to 625kgs, a moved designed to encourage more teams implementing KERS. The energy recovery system is believed to weigh 30kgs, making it un-feesable for taller drivers such as BMW Sauber’s Robert Kubica to install. With a new minimum weight, KERS can be installed without taking away the teams ability to use ballast in cure handling issues.

Teams entering the 2010 World Championship must lodge their applications by the 29^th May, also stating whether they will be accepting to ‘Budget Cap’ Initiative. FOCA will meet again in next few weeks to discuss the changes