MEMO/07/71 Brussels, 21st February 2007 State Aid: Commission Guidelines on National Regional Aid for 2007-2013, Belgium and Denmark – frequently asked questions The European Commission has approved under EC Treaty state aid rules the regional aid maps covering the period 2007-2013 for Belgium and Denmark (see IP/07/211). These regional aid maps are approved by the Commission under the Regional Aid Guidelines for 2007-2013 (see IP/05/1653 and MEMO/05/491). 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. 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. Those maps which have been designed for the period 1999-2006 expired 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 with a view to the new planning period 2007-2013. What is 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, in December 2005 the Commission has fixed the overall population coverage to 42% of the then 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. 2 Belgium The following table sets out the regional state aid map for Belgium: Belgium - National regional state aid map 1.1.2007-31.12.2013 NUTS Ceiling for regional investment aid1 (applicable to large enterprises) Name II - III 1.1.2007-31.12.2013 1. Regions eligible for aid under Article 87(3) (a) of the EC Treaty until 31.12.20102 (Statistical effect regions) BE32 Hainaut 1.1.200731.12.2010 1.1.201131.12.2013 30% 20% 2. Regions eligible for aid under Article 87(3)(c) of the EC Treaty for the whole period 2007-2013 BE2-1 West-Vlaamse cluster (the communes of) 15%(*) Diksmuide, Lo-Reninge, Ieper, Middelkerke, Oostende BE2-2 Wervik 15%(*) BE2-3 Ronse 15%(*) BE2-4 Tongeren/Herstappe 15%(*) Herstappe, Tongeren BE2-5 Limburgse-cluster (the communes of) 15%(*) Bree, Lommel, Maaseik, Hechtel-Eksel, Helchteren, Dilsen-Stokkem, Lanaken, Maasmechelen BE2-5 Limburgse-cluster (the communes of) 10%(*) As, Beringen, Genk, Leopoldsburg, Heusden-Zolder BE2-6 Kempense cluster (the communes of) 10%(*) Balen, Dessel, Mol BE3-1 1 (*) 2 Bassin liégeois (the communes of) 15% For investment projects with eligible expenditure not exceeding €50 million, with the exception of the eligible zones in the Flemish Region marked with (*), this ceiling is increased by 10 percentage points for medium sized companies and 20 percentage points for small companies as defined in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). For large investment projects with eligible expenditure exceeding €50 million, this ceiling is subject to adjustment in accordance with paragraph 67 of the Guidelines on national regional aid for 2007-2013. As far as the eligible zones in the Flemish Region are concerned, the aid intensities shown are those applicable to all enterprises irrespective of their size. This region might remain eligible under Article 87(3)(a), in which case the ceiling for the period 1.1.2011-31.12.2013 will be increased to 30%, if a review to be undertaken in 2010 shows that the GDP per capita of the region concerned has fallen below 75% of the EU-25 average. 3 Engis, Awans, Flémalle, Grâce–Hollogne, Herstal, Liège, Oupeye, Saint-Nicolas, Seraing, Visé BE3-2 Verviers-Dison 15% Dison, Verviers 15%(3) BE3-3 Tubize BE3-4 Sambreville 15% BE3-5 Ardenne (the communes of) 15% Bastogne, Bertogne, Vielsalm, La-Roche-en-Ardenne, Marche-en-Famenne, Libin, Libramont-Chevigny, Neufchâteau, Tellin, Dinant, Houyet, Rochefort, Somme-Leuze 3. Regions eligible for aid under Article 87(3)(c) of the EC Treaty for the whole period 2007-2013 for higher rates of SME aid only, with a basic aid intensity of 15% Région de Bruxelles-Capitale / Brussels Hoofdstedelijk Gewest BE10 (only the indicated parts of the following communes) Anderlecht (Ceria-Zone d'Habitat, Petite Ile-Rive Droite, Ceria I, Birmingham, RoseeEst, Rosee-Ouest, Abattoir, Conseil-Nord, Brogniez-Nord, Brogniez-Sud, ConseilSud, Revision-Sud, Revision-Nord, Albert I-Immeubles, Albert I-Quartier, Goujons, Deux Gares) Bruxelles/Brussel (Quai des Usines-Monnoyer, Haren-Sud-Ouest, Haren-Sud, Haren-Est, Gare de Formation, Marly-Sud, rue des Faines, rue du Wimpelberg, Trassersweg-Neder-Heembeek, Neder-Heembeek-Nord, Marly-Nord, Saint-François Xavier, Bon Secours – Palais du Midi, Notre-Dame de la Chapelle, Anneessens (Place), Senne (rue de la), Nouveau Marché au Grain, Marché au Porcs, CongrèsGare, Blaes (rue)-Sud, Blaes (rue)-Centre, Saint-Thomas (Institut), rue des Commerçants, E. Jacqmain (Boulevard)-Ouest, Parvis Saint-Roch, Anvers (Chaussée d')-Sud, Anvers (Chaussée d')-Nord, Allée Verte-Bassin Vergote, Masui (Place)-Nord, Quai de Willebroeck, Tour et Taxis) Evere (Gare de Formation, Carli, Bon Pasteur, Kerkhoek, Zone industrielle, J. Bordet (Avenue de), Oasis-Provence-Languedoc, Germinal I) Forest/Vorst (Bollinckx, Bempt, Charroi (rue de), Pont de Luttre-Ouest, SaintAntoine) Molenbeek-Saint-Jean/Sint-Jans-Molenbeek (Centre, Canal-Sud, Brunfaut (Quartier), Ransfort, Quatre Vents, Saint-Joseph, Duchesse de Brabant, Industrie, Birmingham-Sud, Birmingham-Nord, Independance, Etangs Noirs, Gare Ouest, Marie-José Blocs, Chemin de Fer, Laekenveld, Mexico, Dubrucq-Nord, Ulens, Piers, Lavallée, Canal-Nord) Saint-Gilles/Sint-Gillis (Guillaume Tell-Sud, Dethy (rue), Angleterre (rue d'), Regies, Roi (Avenue du), Denmark (rue de), Gare du Midi, Crickx (rue), Jamar, France (rue de)) Saint-Josse-Ten-Noode/Sint-Joost-Ten-Noode (Saint-François, Saint-Lazare, Rogier, Prairie, Jardin Botanique, Nord, Manhattan) Schaerbeek/Schaarbeek (Josaphat Gare, Houffalize (Place), L'Olivier (rue), Royale Sainte-Marie (rue), Brabant (rue de), Vanderlinden (rue), Palais (rue de), Gare du Nord, Reine (Avenue), Stephenson (Place), Brichaut (rue de)) Uccle/Ukkel (Zwartebeek) 3 until 31/12/2010 only 4 What are the changes for Belgium compared with the period 20002006? In the period 2000-2006, 30.9% of the Belgian population lived in assisted areas in 87(3)(c) regions. The aid intensities varied in the range from 10% to 20%. For the period 2007-2013, the proportion of Belgium's population living in areas eligible for national regional aid is reduced by 5 percentage points. The total coverage for the period 2007-2013 is 25.9%, of which 12.4% under statistical effect regions and 13.5% under Article 87(3)(c). The maximal aid intensities change: - for Hainaut there is an increase in aid intensity for the period 2007-2010 from 20% to 30% as this region now qualifies as a statistical effect region, - for the 87(3)(c) regions from 20%-10% to 15%-10%. Denmark The following table sets out the regional state aid map for Denmark: DENMARK - National regional state aid map 1.1.2007-31.12.2013 Ceiling for regional investment aid41 (NUTS ΙΙ REGION) (NUTS IΙΙ REGION) (Applicable to large enterprises) 1. Regions eligible for aid under Article 87(3) (c) of the EC Treaty for the whole period 2007-2013 Læsø Kommune Ærø Kommune 10% Langeland Kommune 10% Lollands Kommune 15% Samsø Kommune 10% Bornholms Regionskommune 10% Frederikshavn Kommune 10% Tønder Kommune 10% Morsø Kommune 10% Guldborgsund Kommune 15% 10% 2. Islands eligible for aid under Article 87(3) (c) of the EC Treaty for the whole period 2007-2013 4 For investment projects with eligible expenditure not exceeding €50 million, this ceiling is increased by 10 percentage points for medium sized companies and 20 percentage points for small companies as defined in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). For large investment projects with eligible expenditure exceeding EUR 50 million, this ceiling is subject to adjustment in accordance with paragraph 67 of the Guidelines on national regional aid for 2007-2013. 5 Årø Agersø Avernakø Bågø Barsø Bjørnø Drejø Egholm Endelave Fur Hjarnø Hjortø Lyø Mandø Nekselø Omø Orø Sejerø Skarø Tunø Venø 10% 15% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 15% 15% 15% 15% 10% 10% 10% 3. Regions eligible for aid under Article 87(3) (c) of the EC Treaty for the whole period 2007-2013 for higher rates of SME aid only Basic aid ceiling5 Norddjurs Kommune Tønder Kommune Vesthimmerlands Kommune 10% 10% 10% 4. Regions eligible for transitional coverage under Article 87(3) (c) of the EC Treaty for the period 1.1.2007-1.12.2008 at an aid ceiling of 10% Svendborg Kommune6 Brønderslev-Dronninglund Kommune Thisted Kommune 5 6 This ceiling is increased by 10 percentage points for medium sized companies and 20 percentage points for small companies as defined in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). No aid may be awarded for investment projects with eligible expenditure exceeding EUR 25 million. Municipality of Svendborg not including the islands of Drejø, Skarø and Hjortø, which are assisted areas for the whole period of 2007-2013. 6 What are the changes for Denmark compared with the period 20002006? In the period 2000-2006, 17.1% of the Danish population lived in assisted areas under Article 87(3)(c). The aid ceilings varied in the range from 10% to 15%. For the period 2007-2013, the proportion of Denmark's population living in areas eligible for national regional aid is halved (a reduction of 8.5 percentage points). The total coverage for the period 2007-2013 is 8.6% under Article 87(3)(c) and the aid ceilings remain at 10% and 15%. For the period 2007-2008, Denmark has a transitional additional coverage of 2.7% of its population at an aid ceiling of 10%. 7