IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Apr 2017 | Removal date: open ended
Still in force

Financial grant

According to the complainant (Hüpeden & Co. (GmbH & Co.) KG), "The complaint relates to an €12 600 000 direct grant granted to Getzner Textil Weberei GmbH by the State of Thuringia (through the Thüringer Aufbaubank) for an €47 000 000 investment in the construction of a new production hall [...]"

The complainant alleged that, "two aid measures were granted to Getzner Textil Weberei GmbH: (i) the direct grant provided as regional investment aid, and (ii) the sale of land below its market value [...]" by the city of Gera (location of the new production hall).

As far as the direct grant is concerned, the European Commission recognized that the "[...] aid was granted to a single company [and] thus [...] selective." and that the company "[...] benefits from an economic advantage over its competitors [...]", but the financial grant did not constitute a violation of state-aid rules, because it was granted under the "Gesetz über die Gemeinschaftsaufgabe "Verbesserung der regionalen Wirtschaftsstruktur (GWRG) vom 6 August 2009", which referrs to the "Regional Block Exemption Regulation". 

Notably the European Commission stated "The aid was granted by the German authorities for an investment resulting in the production of Africa damask. Since this product can be traded between Member States and the measure strengthens the competitive position of Getzner Textil Weberei GmbH, it is likely to affect trade between Member States and has the potential to distort or threaten to distort competition."

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

268 Special fabrics
5801 Woven pile fabrics and chenille fabrics, other than fabrics of heading 58.02 or 58.06.
580122 Cut corduroy
580127 Warp pile fabrics
580133 Other weft pile fabrics
580136 Chenille fabrics
580137 Warp pile fabrics
279 Textiles n.e.c.
5804 Tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, other than fabrics of headings 60.02 to 60.06.
580410 Tulles and other net fabrics
580421 Of manmade fibres
580429 Of other textile materials
5806 Narrow woven fabrics, other than goods of heading 58.07; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).
580610 Woven pile fabrics (including terry towelling and similar terry fabrics) and chenille fabrics
580620 Other woven fabrics, containing by weight 5 % or more of lastomeric yarn or rubber thread
580631 Of cotton
580632 Of manmade fibres
580640 Fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)
5807 Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.
580710 Woven
5808 Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles.
580810 Braids in the piece
5810 Embroidery in the piece, in strips or in motifs.
581010 Embroidery without visible ground
581092 Of manmade fibres
581099 Of other textile materials
5811 Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 58.10.
581100 Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 58.10.
265 Woven fabrics of natural non-cotton fibres
266 Woven fabrics (except special fabrics) of cotton
267 Woven fabrics of man-made filaments & staple fibres

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