Strasbourg, 13/03/2008 (Agence Europe) - On Tuesday 11 March, the European Commission delivered a mixed decision, partly positive and partly negative, on the tax refund scheme for German greenhouses. Following an investigation, it came to the conclusion that the scheme was compatible with the common market insofar at it could be based on the Community guidelines on state aid for environmental protection. The Commission considered, however, that a large part of the tax reductions were incompatible with the common market, and has ordered Germany to recover the aid.
On 16 August 2001, by means of the Law amending the mineral oil tax, Germany introduced a tax reduction for fuels for use in greenhouses and covered growing areas. The aid was granted in the form of a tax refund. This tax reduction, which had originally been granted for two years, was finally extended until 31 December 2004. Germany intended to retain that tax refund until the end of 2006, and notified the Commission of this extension measure in 2005.
In March 2006, the Commission opened the investigation procedure, as it considered that this scheme would constitute operating aid incompatible with the common market. After receiving comments from Germany and third parties, the Commission came to the conclusion that the scheme was compatible with the common market insofar at it could be based on the Community guidelines on state aid for environmental protection. The Commission considered, however, that part of the tax reductions was incompatible with the common market. Insofar as these tax reductions were granted illegally over the period from 2001-2004, the German authorities have been requested to recover them from the beneficiaries. (L.C.)