ANNOUNCEMENT 21 Aug 2013

In August 2013, the government of the Netherlands announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Jan 2014 | Removal date: 30 Dec 2020
Still in force

Loan guarantee

On 21 August 2013, the Netherlands notified the EC about their intention to prolong and amend the existing guarantee scheme for agricultural enterprises, established in 2008.
 
Beneficiaries of the program are 'SMEs active in primary production of agriculture' (para. 17, letter from the EC to the Netherlands, Brussels 17.12.2013)
 
The budget for the period of 2014-2020 is EUR 39.16 million or EUR 5.59 million annually. The aid intensity will be a maximum 7.17 percent per case. (para. 15)
 
The proposed amendments with respect to the 2008 scheme are: (para. 22)

  • Increase in the annual payments from EUR 3.25 million to EUR 5.59 million
  • Increase of the maximum aid intensity from 5.83 to 7.17 percent

 
To verify the existence of trade distortions, it is necessary to examine the initial decision from the EC in 2008.
 
'The guarantee of the Government on the loans granted by the credit institutions constitute a measure deriving from State resources. Such a measure is selective in that it favors certain undertakings in the Netherlands and would constitute aid in the meaning of Article 87 of the Treaty if the recipient thereby acquires a competitive edge which it would not have acquired under normal market conditions.' (para. 32, letter from the EC to the Netherlands, Brussels, 4 December 2008)
 
'It can be concluded that the measure constitutes state aid and that the market economy investor principle for the guarantees proposed in the notified scheme is not completely adhered to'. (para. 33)
 
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.