Brussels, 09/11/2006 (Agence Europe) - On 8 November, the European Commission approved the regional aid map covering the period 2007-2013 for Germany. This decision forms part of a wider exercise to review regional aid systems in all Member States in accordance with the new Regional Aid Guidelines adopted in December 2005. The new guidelines aim to re-focus regional aid on the most deprived regions of the enlarged EU, while allowing to improve competitiveness and to provide for a smooth transition.
A regional aid map defines the regions of a Member State eligible for national regional investment aid for large enterprises under EC Treaty state aid rules and establishes the maximum permitted levels of such aid in the eligible regions. Article 87(3)(a) of the EC Treaty foresees the possibility to grant regional state aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment. The Regional Aid Guidelines define this type of regions as having a GDP below 75% of the Community average. In line with these principles, the majority of the German New Länder will continue to be eligible for regional investment aid at a maximum aid intensity of 30% of the eligible costs. However, within the New Länder, three regions (Halle, Leipzig and Brandenburg Südwest) have a GDP in excess of 75% of the EU average, but below 75% of the average of the former EU-15. For this type of region, known as “statistical effect” regions, a maximum aid intensity of 30% of the eligible costs applies until 31 December 2010. A review of the status of these regions will be undertaken in 2010. If their GDP has declined to below 75% of the EU average, the aid rate of 30% will be maintained until the end of 2013. Otherwise, a maximum aid intensity of 20% for 2011-2013
Article 87(3)(c) of the EC-Treaty foresees the possibility to grant regional state aid to facilitate the development of certain economic activities or of certain economic areas where such aid does not adversely affect trading conditions to an extent contrary to the common interest. The regional aid guidelines define this type of regions as areas of a Member State which are disadvantaged in relation to the national average. As these regions are less disadvantaged than areas covered by Article 87(3)(a), both the geographical scope and the aid intensity are strictly limited. In line with these principles, 11% of Germany's population remain eligible for regional investment aid under Article 87(3)(c) of the EC-Treaty at a maximum aid intensity of 10, 15 or 20% of the eligible costs.
Information on the approved regional aid maps will soon be published at:
http: //ec.europa.eu/comm/competition/state_aid/overview/ram.html (ol)