IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2009 | Removal date: 31 Dec 2012
Still in force

Financial grant

On 4 September 2008 the German authorities notified the above mentioned measure, pursuant to Article 88(3) EC. The scheme concerns aid to R&D and technology- and knowledge-transfer as regards Organic Farming (Ökologischer Landbau) in Germany. It applies to all projects which involve products not falling under Annex I of the EC Treaty and includes, as an example, measures on the development of pesticides for organic farming, agricultural machinery or processing technology for organic farming. Projects involving products which fall under Annex I of the EC Treaty are the subject of a separate decision (case N400/2008).
 
The total budget for the period 2009-2013 will be EUR 40 million. The yearly budget will be EUR 8 million. The aid is funded through the Federal Budget. The scheme uses direct grants.
 
Beneficiaries of the scheme will be enterprises with a seat (Geschäftsbetrieb) in Germany with relevant experience and suitable infrastructure to undertake the measures. The German authorities estimate that there will be more than 1000 beneficiaries. Research projects that belong to the following categories fundamental research, industrial research or experimental development can be supported under the scheme.
 
The Commission made the following assessment:
 
" The measure under assessment involves State resources, as it will be financed through the budget of the State. The measure is selective, as it will benefit a limited number of firms, which will receive an advantage through this support. Finally, since these firms are or can be active in intra-Community trade, the measure will also have an effect on trade. Thus, the scheme meets the conditions of Article 87 (1) EC insofar as grants are awarded to enterprises." (par. 33 of the letter from the European Commission to Germany - Brussels, 17.02.2009 K(2009)1156).
 
The Commission has assessed the compatibility of the aid measures described above on the basis of the R&D&I Framework and concluded that the notified scheme meets all the conditions for compatibility included in the R&D&I Framework. Therefore, the Commission stated that the aid measure is compatible with the EC Treaty in application of its Article 87 (3) (c).
 
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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AFFECTED SECTORS AND PRODUCTS

346 Fertilizers & pesticides
3808 Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plantgrowth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphurtreated bands, wi
380850 Goods specified in Subheading Note 1 to this Chapter
380891 Insecticides
380892 Fungicides
380893 Herbicides, antisprouting products and plantgrowth regulators
380894 Disinfectants
380899 Other
441 Agricultural or forestry machinery & parts
8701 Tractors (other than tractors of heading 87.09).
870110 Pedestrian controlled tractors
870130 Tracklaying tractors
870190 Other
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers

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