ANNOUNCEMENT 04 Sep 2014

In September 2014, the German authorities notified a financial support scheme for investments in certain regions. The European Commission approved the measure on 24 February 2015.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.39460. Evaluation plan for the block exempted large aid scheme "Bund-Länder-Gemeinschaftsaufgabe Verbesserung der regionalen Wirtschaftsstruktur - Gewerbliche Wirtschaft" :
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_39460

Original publication:
http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2017:020:SOM:EN:HTML

European Commission decision. SA.39460
http://ec.europa.eu/competition/state_aid/cases/254307/254307_1682977_81_2.pdf

Inception date: 04 Sep 2014 | Removal date: 31 Dec 2020

Interest payment subsidy

On 4 September 2014, the German authorities notified a EUR 5.9 billion (USD 7.6 billion) financial support scheme for investments in certain regions. The European Commission approved the scheme on 24 February 2015. The scheme provides interest payment subsidies, among others (see related interventions), to support investment activity in certain regions. It will be in force until 31 December 2020.

Under the scheme, business investment will be subsidized in East German Länder, some West German regions, certain areas of Bavaria bordering the Czech Republic, and other economically weak regions upon request from the beneficiary. The state aid is intended to better employment and economic opportunities in the regions. 

In this context, the European Commission noted that the subsidy scheme is an "'Improvement of regional economic structure: support to productive investment' block exempted scheme," meaning that Germany did not need to notify the Commission given that the measure is exempt from needing approval. 

The state aid is notified under the following objective: Employment.

Additionally, the state aid can come in the form of a financial grant, where the money is paid directly to the beneficiary as a means to offset business investment costs. Please, see related state intervention. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 04 Sep 2014 | Removal date: 31 Dec 2020

Financial grant

On 4 September 2014, the German authorities notified a EUR 5.9 billion (USD 7.6 billion) financial support scheme for investments in certain regions. The European Commission approved the scheme on 24 February 2015. The scheme provides financial grants, among others (see related interventions), to support investment activity in certain regions. It will be in force until 31 December 2020.

Under the financial grant scheme, business investment will be subsidized directly in East German Länder, some West German regions, certain areas of Bavaria bordering the Czech Republic, and other economically weak regions. The grant is intended to better employment and economic opportunities in these specific regions. 

In this context, the European Commission noted that the financial grant is an "'Improvement of regional economic structure: support to productive investment' block exempted scheme," meaning that Germany did not need to notify the Commission given that the measure is exempt from needing approval. 

The state aid is notified under the following objective: Employment.

Additionally, the state aid granted by the German Government can also take the form of an interest payment subsidy. Please, see related state intervention. 

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

 
 
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