Slovakia: State aid to Volkswagen Slovakia
Description
By notification of 19 December 2008, the Slovak authorities notified their intention to grant aid for a large investment project by Volkswagen Slovakia a.s. ( Volkswagen Slovakia) in Bratislava. The Slovak authorities intend to promote regional development by providing
regional aid of EUR 14 300 000 to Volkswagen Slovakia for an investment project in Bratislava.
The Commission concluded that the measure contains state aid and gave the following assessment:
"The financial support to Volkswagen Slovakia will be given by the Slovak authorities in the form of a corporate income tax allowance. The support can thus be considered as given by the Member State and through State resources within the meaning of Article 107(1) TFEU. As the aid is granted to a single company, Volkswagen Slovakia, the measure is selective. The financial support given to Volkswagen Slovakia will relieve the company from expenses which it normally would have had to bear itself and therefore the company benefits from an economic advantage over its competitors. The financial support from the Slovak authorities will be given for investments resulting in the production of motor vehicles. Since these products are subject to trade between Member States, the support given is likely to affect trade between Member States. The favoring of Volkswagen Slovakia and its production by the Slovak authorities means that competition is distorted or threatened to be distorted." (par. 26-31 of the letter from EU to Slovakia - Brussels, 02.12.2009 C(2009)9312 final).
The Commission has decided, on the basis of the foregoing assessment, that the aid of EUR 14 300 000 in nominal value (i.e. EUR 12 555 495 in discounted value), corresponding to an aid intensity of 4.67% GGE in favour of Volkswagen Slovakia, is compatible with Article 107(3)(c) TFEU.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 1 Jan 2009
Duration: 24 months
GTA Evaluation: Red
Source:
the letter from EU to Slovakia - Brussels, 02.12.2009 C(2009)9312 final -http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N674_2008
Government Response:
- 418 reads
