IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

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.
 

AFFECTED COUNTRIES

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TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870432 g.v.w. exceeding 5 tonnes

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