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            COMMISSION DECISION         

of 10 December 2003         

on State aid in the form of loans from the Wagnisbeteiligungsgesellschaft and the Landesförderinstitut implemented by Germany for Neue Harzer Werke GmbH

(notified under document number C(2003) 4496)

(Only the German text is authentic)

(Text with EEA relevance)

(2005/564/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof,

Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,

Having called on interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments,

Whereas:

I.   PROCEDURE

II.   DESCRIPTION OF THE AID

III.   COMMENTS FROM GERMANY

IV.   ASSESSMENT OF THE AID

1.   State aid

2.   Derogations under Article 87 of the EC Treaty

(a)   Restoration of viability

(b)   Avoidance of undue distortions of competition

(c)   Aid in proportion to the restructuring costs and benefits

V.   CONCLUSION

HAS ADOPTED THIS DECISION:

Article 1

The State aid amounting to EUR 1 402 985 which Germany has provided in the form of loans granted by the Wagnisbeteiligungsgesellschaft and the Landesförderinstitut to Neue Harzer Werke GmbH is incompatible with the common market.

Article 2

1.   Germany shall take all necessary measures to recover from the recipient the aid referred to in Article 1 and unlawfully made available to the recipient.

2.   Recovery shall be effected without delay and in accordance with the procedures of national law provided that they allow the immediate and effective execution of the Decision. The aid to be recovered shall include interest from the date on which it was at the disposal of the recipient until the date of its recovery. Interest shall be calculated on the basis of the reference rate used for calculating the grant equivalent of regional aid.

Article 3

Germany shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

Article 4

This Decision is addressed to the Federal Republic of Germany.

Done at Brussels, 10 December 2003.

For the Commission

Mario MONTI            

Member of the Commission

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(1)OJ C 301, 21.10.2000, p. 16 and OJ C 32, 5.2.2002, p. 9.

(2)  See footnote 1.

(3)OJ L 134, 22.5.2002, p. 51.

(4)  See footnote 1.

(5)Gemeinschaftsaufgabe, Förderung der regionalen Wirtschaftsaufgabe, 26. Rahmenplan [26th Outline Plan for the Joint Federal Government/Länder scheme for improving regional economic structures].

(6)Investitionszulagengesetz [Investment Assistance Act].

(7)Wagnisbeteiligungsgesellschaft [Venture Capital Corporation].

(8)Richtlinie zur Förderung von Konsolidierungsbeteiligungen im Mittelstand (Sachsen-Anhalt) [Guidelines on promoting consolidation holdings in small and medium sized enterprises (Saxony-Anhalt)].

(9)Landesförderinstitut [Land Promotion Institute].

(10)Konsolidierungsfonds des Landes Sachsen-Anhalt [Consolidation Fund for the Land of Saxony-Anhalt].

(11)Bundesanstalt für vereinigungsbedingte Sonderaufgaben [Federal Office for Special Unification related Tasks].

(12)OJ C 368, 23.12.1994, p. 12.

(13)OJ L 83, 27.3.1999, p. 1. Regulation as last amended by the 2003 Act of Accession.

(14)OJ L 10, 13.1.2001, p. 30.

(15)  See point 3.2.3 of the 1994 guidelines.

(16)OJ C 288, 9.10.1999, p. 2.

(17)  Point 3.2.4 of the guidelines.

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