ANNOUNCEMENT 08 Mar 2011

In March 2011, the government of Germany announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official letter from the EC to Germany in English, Brussels 8.3.2011: SA.32134
http://ec.europa.eu/competition/state_aid/cases/238873/238873_1199669_49_2.pdf
Official letter from the EC to Germany in English, Brussels 11.3.2014: SA.37387
http://ec.europa.eu/competition/state_aid/cases/249996/249996_1532570_80_2.pdf


Inception date: 08 Mar 2011 | Removal date: 05 Jan 2016
Still in force

Financial grant

On 8 March 2011, the European Commission allowed German authorities to grant state aid for forestry measures as part of the Framework of the Common Task "Improvement of Agricultural Structures and Coastal Protection until the end of 2013.
 
The beneficiaries of the state aid are said to be "natural and legal persons of private and public law as owners of agricultural and forestry land, recognised forestry associations and equated associations" (para. 7, letter from the EC to Germany, Brussels 11.3.2014).
 
The original state aid was approved in 2007 and expired in 2010 (cf. Commission Decision C(2007) 3384 final as State aid No N 67/2007). However, the measure at hand has been modified regarding the maintaining and improving of the soil quality. Furthermore, the budget of this state aid was set to EUR 180 million.
 
On 20 September 2013, German authorities notified the European Commission on their intention to extend the framework until the end of 2015, i.e. for further two years, with an additional budget of EUR 140 million divided evenly between the two extended years.
 
As stated by the Commission, "aid to an undertaking appears to affect trade between Member States where that undertaking operates in a market open to intra-Community trade. The beneficiaries of the aid at issue operate on the timber market, which appears to be a market with significant intra-Union trade. Therefore, the present measure is liable to affect trade between Member States." (para. 23, letter from the EC to Germany, Brussels 8.3.2011)
 
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.