The FIA and the teams participating in F1 have agreed to shorten the ban on engine development to five years. The FIA, which forms the rules for Formula One, had previously instituted a freeze on the development of every team's engine program for a staggering ten years in an effort to reduce the rapidly escalating costs involved with running an F1 team.

At a meeting called by the FIA in Paris, the principals of each team agreed that a ten year ban was too long, but begun discussions on how costs could be curbed in the sport. Rather than continue imposing half-measures aimed at reducing costs, most of the teams agreed that the FIA should actually reduce costs by instituting an overall budget cap, as many had suggested... Autoblog included. Although Ferrari remains opposed to a budget cap, its former technical chief and now head honcho at Honda, Ross Brawn, has been a vocal proponent of the idea.

With the freeze now cut down to half, the FIA announced it would begin working on a new engine formula for the series. F1 has gone in the past couple of decades from turbo eights to V12s and then to V10s before arriving at the 2.4-liter V8s currently used. Insiders expect the next formula to be unveiled within two years' time and to be both more environmentally-friendly and more cost effective.

[Source: Autosport]