MEMO/06/416
Brussels, 8th November 2006
State Aid: Commission Guidelines on National
Regional Aid for 2007-2013, Germany – frequently
asked questions
The European Commission has approved under EC Treaty state aid rules the
regional aid map covering the period 2007-2013 for Germany (see IP/06/1528).
This regional aid map is approved by the Commission under the new
Regional Aid Guidelines (see IP/05/1653 and MEMO/05/491). This decisions
forms part of a wider exercise to review regional aid systems in all Member
States. The maps of twelve other Member States have already been approved
by the Commission (Estonia, Greece, Hungary, Latvia, Poland, Slovakia,
Slovenia, Luxembourg, Malta, Czech Republic, Ireland and Lithuania - see
IP/06/1176, IP/06/1393 and IP/06/1451).
What is regional aid?
Regional aid is defined in Article 87(3)(a) and (c) of the EC Treaty as state aid
granted by Member States to promote the economic development of certain
disadvantaged areas within the EU. It consists mostly in investment aid to large
companies, targeted on specific regions in order to redress regional disparities.
Increased levels of investment aid, granted to SME located in disadvantaged regions
are also considered as regional aid.
What is a regional aid map?
A regional aid map defines the regions of a Member State which are eligible for
regional aid and establishes the maximum permitted levels of such aid in the eligible
regions. These regions are known as “assisted regions”. The adoption of a regional
aid map is a pre-condition for a Member State to grant regional aid. The current
maps have been designed for the period 1999-2006 and will expire on 31/12/2006.
Member States have to notify their new maps, based on the new regional aid
guidelines adopted in December 2005, to the Commission sufficiently early to be
approved before the new planning period starts on 1/1/2007.
What’s the proportion of assisted areas in the EU?
In the light of the exceptional character of state aid, there must be substantially less
assisted regions in the EU than there are unassisted regions. Moreover, given the
European Council’s repeated calls for less state aid and the widely shared concerns
about the distortive effects of investment aid for large companies, the Commission
has fixed the overall population coverage to 42% of the current 25 Member States’
total population.
What are the criteria for qualifying as assisted area?
Article 87(3)(a) of the EC Treaty provides that aid to promote the economic
development of areas where the standard of living is abnormally low or where there
is serious underemployment may be considered compatible with the Single Market.
This derogation concerns only areas, where the economic situation is extremely
unfavourable in relation to the EU as a whole, that is, according to the regional aid
guidelines, mainly regions with a gross domestic product (GDP) per capita of less
than 75% of the EU average and the EU’s outermost regions. In addition, for regions
whose GDP per capita exceeds 75% of the EU average only since the 2004
enlargement, a transitional period is foreseen until end 2010.
Article 87(3)(c) of the EC Treaty is wider in scope and allows regional development
aid, provided it does not adversely affect trading conditions to an extent contrary to
the common interest. This derogation concerns areas which are disadvantaged in
relation to the national average. As the regional handicap of these areas is smaller,
both the geographic scope of the exception and the aid intensity allowed are lower
than for regions targeted by Art. 87(3)(a). To determine the scope, the Commission
assigns a population ceiling to each Member State, taking into account, among
others, population density, unemployment and GDP per capita. Within this ceiling,
the Member States then select their eligible regions according to objective criteria set
out in the regional aid guidelines. These include GDP per capita, population density,
geographical situation, etc.
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Germany
The following table gives an overview of the eligible population of the regional state
aid map for Germany. For the German regions under Article 87(3)(a) of the EC
Treaty a maximum aid intensity of 30% applies. For the German regions under
Article 87(3)(c) of the EC Treaty a maximum aid intensity of 10, 15 or 20% applies.
Art. 87.3a
Art. 87.3astatistical.
effect
Art. 87.3c
Total
Baden-Württemberg
0
0
0
0
Bayern
0
0
1 013 316
1 013 316
Berlin
0
0
2 387 828
2 387 828
1 163 924
1 403 780
0
2 567 704
Bremen
0
0
216 776
Hamburg
0
0
0
Hessen
0
0
110 692
1 719 653
0
0
1 719 653
Niedersachsen
0
712 460
1 469 645
2 182 105
Nordrhein-Westfalen
0
0
2 268 233
2 268 233
Rheinland-Pfalz
0
0
373 252
373 252
Saarland
0
0
201 892
201 892
Sachsen
3 221 082
1 075 202
0
4 296 284
Sachsen-Anhalt
1 669 304
825 133
0
2 494 437
0
0
1 033 024
1 033 024
Thüringen
2 355 280
0
0
2 355 280
Sum
10 129 243
4 016 575
9 074 658
Länder /
Inhabitants
Brandenburg
Mecklenburg-Vorpom.
Schleswig-Holstein
3
216 776
0
110 692
23 220 476
The following map gives an overview of the eligible areas in Germany:
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What are the changes for Germany compared with the period 20002006?
In the period 2000-2006, the whole of East Germany besides the labour market
region Berlin was eligible under Article 87(3)(a). Parts of West Germany and the
whole of Berlin were eligible under Article 87(3)(c).
For the period 2007-2013 the whole of East Germany with the exception of the Land
Berlin remain eligible under Article 87(3)(a). However, the three statistical effect
regions of Halle, Leipzig and Brandenburg-Südwest will be reassessed by the
Commission in 2010. In case they loose their status under Article 87(3)(a), they
would then become eligible under Article 87(3)(c).
Pursuant to the Regional Aid Guidelines Germany was able to allocate 11% of its
population or 9.075 million inhabitants for the period 2007-2013 under Article
87(3)(c) to the Länder of West Germany and Berlin.
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