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 Apr 2009 | Removal date: 30 Oct 2009
Still in force

Interest payment subsidy

On 6 March 2009, Spain notified the above mentioned aid measure.
 
Spain considers that the financial crisis is affecting its whole economy at local regional and country level. Among others, the automotive sector, in Spain as well as in the other Member States, has been particularly and significantly hit by the financial downturn.
 
Spain, according to the data provided by the Spanish authorities, the automotive sector (including car manufacturers and car components manufactures) accounts for around 10% of the overall industrial production and for around 20% of the totality of products exported. It employs directly more than 300 000 people and indirectly a large number of retailers and providers of aftermarket services.
 
The scheme is explicitly based on Article 87(3)(b) EC Treaty, and relies on the Commission communication 'Temporary Framework for State aid measures to support access to finance in the current financial and economic crisis' ('the Temporary Framework'), in particular on its Section 4.5 concerning aid for the production of green products.
 
The scheme applies to companies of all sizes: both SMEs and large firms. Its geographic scope covers the whole territory of Spain. The aid will be granted in the form of interest rate subsidy for investment loans for production of green products.
 
The subsidized interest rates relate to investment loans for financing projects which consist of the production of green cars and car components which contribute to the realization of green cars and thereby significantly improve environmental protection. The subsidized interest rate applies during a maximum period of 2 years following granting of loan. The overall budget to finance the measures contained therein is Euro 690 million.
 
The Commission stated that the notified measure constitutes state aid within the meaning of Article 87 (1) of the EC Treaty and gave the following assessment:
 
"State resources are involved in the notified scheme since the aid is granted from State resources, via the respective aid granting authorities at national level. The measure is selective since it will be granted only to certain firms. The measure conveys an advantage to beneficiaries by granting them investment loans with subsidised interest rates which would not be probably available on the market in the absence of the notified measure. Consequently, the aid will strengthen the financial position of beneficiaries in relation to its competitors in the Community and therefore will have potentially distorting effects on competition. The measure affects trade between Member States since the scheme is not limited to beneficiaries which are active in sectors where no intra-community trade exists." (par. 36-39 of the letter from the EC to Spain - Brussels, 30.3.2009 C(2009) 2355 final).
 
Article 87(3)(b) of the EC Treaty enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 87(3)(b) by the Court of First Instance.
 
The Commission referred to its Communication on the financial crisis and concludes that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 87(1) EC, it is compatible with the Common Market according to the Article 87(3)(b) EC Treaty. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis. (par. 41 - 45 of the letter).
 
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

MAP
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)
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.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
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
870490 Other
492 Motor vehicle bodies; trailers & parts thereof
8707 Bodies (including cabs), for the motor vehicles of headings 87.01 to 87.05.
870710 For the vehicles of heading 87.03
870790 Other

Please report this page in case you detect an inaccuracy in its content.