ANNOUNCEMENT 16 Dec 2013

In December 2013, 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 EC to Germany in German, NN14/2004 (Brandenburg):
http://ec.europa.eu/competition/state_aid/cases/138784/138784_492692_6_2.pdf

Official letter from the EC to Germany in English, SA.37973 (Brandenburg):
http://ec.europa.eu/competition/state_aid/cases/251142/251142_1522402_110_2.pdf

Official letter from the EC to Germany, N508/2003 (Hessen):
http://ec.europa.eu/competition/state_aid/cases/136413/136413_486525_6_2.pdf

Official letter from the EC to Germany, SA.37607 (Hessen):
http://ec.europa.eu/competition/state_aid/cases/250451/250451_1502305_65_2.pdf

Official letter from the EC to Germany, SA.37802 (Lower Saxony):
http://ec.europa.eu/competition/state_aid/cases/250825/250825_1502316_44_2.pdf

Official letter from the EC to Germany, SA.37803 (Baden-W?rttemberg):
http://ec.europa.eu/competition/state_aid/cases/250826/250826_1503112_45_2.pdf

Official letter from the EC to Germany, SA.37822 (Rhineland-Palatinate):
http://ec.europa.eu/competition/state_aid/cases/250855/250855_1505235_64_2.pdf

Official letter from the EC to Germany, SA.37972 (Saxony-Anhalt):
http://ec.europa.eu/competition/state_aid/cases/251141/251141_1516858_88_2.pdf

Official letter from the EC to Germany, SA.37940 (Thuringia):
http://ec.europa.eu/competition/state_aid/cases/251070/251070_1520578_87_2.pdf

Official letter from the EC to Germany, SA.37724 (Saxony):
http://ec.europa.eu/competition/state_aid/cases/250680/250680_1555228_43_2.pdf

Official letter from the EC to Germany, SA.38376 (Hamburg):
http://ec.europa.eu/competition/state_aid/cases/251913/251913_1561476_68_2.pdf


Inception date: 16 Dec 2013 | Removal date: 14 Jan 2020
Still in force

Financial grant

 
Between November 2013 and May 2014, the European Commission allowed German authorities to offer state aid for the removal and disposal of fallen stock in a number of different Lands. As all the different cases are prolongations of initial schemes from 2004, only those involving significant changes with respect to content or budgeting will be mentioned.
 
The beneficiaries of the state aid are all primary agricultural producers, i.e. farmers owning animals in the Lands concerned. They would be compensated for the removal and destruction of fallen stock; in some cases also for animals fallen during the transport to the slaughterhouse.
 
On 16 December 2013, the Commission allowed Germany to grant aid worth EUR 24.5 million for the removal and disposal of fallen stock in the Land of Hessen. The scheme includes an increased budget (para. 6, letter from the EC to Germany, Brussels 16.12.2013) compared to the initial measure from 2003 (cf. N508/2003).
 
On the same day, the Land of Lower Saxony was granted a budget of EUR 79.5 million, with a increased annual budget of EUR 26.5 million; whereas the Land of Baden-Wuerttemberg was allowed aid worth EUR 60 million with a higher annual budget of EUR 10 million.
 
On 18 December 2013, the EC allowed the Land of Rhineland-Palatinate to grant aid worth EUR 30 million with an increased annual budget of 5 million.
 
On 28 January 2014, the Commission approved aid worth EUR 17.94 million to the Land of Saxony-Anhalt. The annual budget was also raised, in this case to 2.56 million.
 
On 12 February 2014, the Land of Thuringia was allowed to offer state aid amounting to EUR 7.8 million, with a higher annual budget of 1.3 million. Furthermore, the aid intensity was lowered from 66.67% to 33.33%.
 
On 19 February 2014, the European Commission allowed the German authorities to offer state aid for the removal and disposal of fallen stock in the Land of Brandenburg. The state aid scheme is based on a previous framework from 2004 (cf. NN14/2004), however, the aid intensity was reduced to 40% (from 66.6) and the budget was increased. The total budget amounts to EUR 12 million, whereas the annual budget constitutes EUR 2 million.
 
On 10 April 2014, the EC granted aid worth EUR 18 million to the Land of Saxony. The only change from the intial framework involved a doubling of the initial annual budget from EUR 1.5 million to 3 million.
 
On 22 May 2014, the Land of Hamburg was granted aid of EUR 180'000. In addition, the aid intensity was reduced to 70%.
 
The Commission pointed out that "such a scheme constitutes State aid within the meaning of Article 107(1) TFEU, because it is granted out of State resources (the compensation measures are financed by the Land Brandenburg), it favours certain undertakings (animal owners) in Brandenburg and it distorts or at least threatens to distort competition and affects trade between Member States in the light of the fact that agricultural sector is characterised by intense competition and significant trade flows between Member States." (para. 16, letter from the EC to Germany, Brussels 19.2.2014)
 
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.