ANNOUNCEMENT 11 Dec 2009In December 2009, the government of Lithuania announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
the letter from the EC to Lithuania - Brussels, 1.2.2010 C(2010) 691 - http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N686_2009
By notification of 11 December 2009, the Lithuanian authorities notified a temporary aid scheme for granting limited amounts of compatible aid under the Temporary Framework for State aid measures to support access to finance in the current financial and economic crisis."
Lithuania considers that the financial crisis is affecting its real economy. Lithuania aims at supplying the above mentioned state aid scheme to remedy the serious disturbance in its economy. The aid will be provided in the form of direct grant. The overall amount available under this scheme will be 10 000 000 LTL (approximately 2 896 200 EUR).
Over 1000 undertakings active in the primary production of agricultural products.
The Comission gave the following assessment:
"The aid at issue is financed out of State resources and benefits certain undertakings. Pursuant to the case law of the Court of Justice, aid to an undertaking is deemed to affect trade between Member States if that undertaking operates in a market open to intra-Community trade. The mere fact that the competitive position of an undertaking is strengthened compared with other competing undertakings, by giving it an economic benefit which it would not otherwise have received in the normal course of its business, points to a possible distortion of competition. The beneficiaries of the aid at issue operate on a market where intra-community trade takes place. The aid measure could therefore distort competition and affect trade between Member States and consequently constitutes aid pursuant to Article 107(1) of the TFEU." (par. 27 of the letter from the EC to Lithuania - Brussels, 1.2.2010 C(2010) 691).
The European Commission has decided, however,not to raise any objections to the notified temporary state aid scheme and has accordingly decided to consider the aid to be compatible with the internal market under Article 107(3)(b) of the 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.