The new rules bring a number of new elements to Formula One and are aimed at creating an exciting championship eligible to more teams and sponsors.

The main change is with engines, which are to be homologated for five years until 2012. This means that only specific engine elements, listed by the FIA in conjunction with the teams, can be modified each year. These are mainly individual elements such as ports, piston crowns and spark plugs.

Other rules include the creation of a single tyre supplier for three years and a restriction in testing to 30,000km per team. Engines will continue to be used for two races but failures will result in weight penalties of 15kg rather than demotion on the grid. Similarly, gearboxes will have to last for four races with the same weight penalty for failure.

On the financial side, the US$48 million entry bond has been scrapped in an effort to make the sport more eligible to new teams.

The idea is to finalise all the regulations which affect the design of the cars before 20 June 2006. As such the FIA has instigated a series of meetings with the teams that have agreed to enter the 2008 Championship in order to finalise these regulations.

A regulation can be modified following a majority vote of the Sporting Working Group, consisting of one senior representative from each team, and ratification by the Formula One Commission and the World Motor Sport Council.

The regulations not affecting the design of the cars can be modified at any point up to the start of the 2008 season.