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STATE AID — FRANCE

State aid No C 46/2004 (ex NN 65/2004) — Fiscal economic interest groupings: tax depreciation favourable to firms that are approved by the Ministry of the Budget

Invitation to submit comments pursuant to Article 88(2) of the EC Treaty

(2005/C 89/06)

(Text with EEA relevance)

By letter dated 14 December 2004, reproduced in the authentic language on the pages following this summary, the Commission notified France of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty concerning the abovementioned measure.

Interested parties may submit their comments on the measure in respect of which the Commission is initiating the procedure within one month of the date of publication of this summary and the following letter, to:

These comments will be communicated to France. Confidential treatment of the identity of the interested party submitting the comments may be requested in writing, stating the reasons for the request.

SUMMARY

Procedure

The Commission sent two requests to the French authorities for information on the scheme for ‘fiscal economic interest groupings’ (‘fiscal EIGs’) introduced by the Law of 2 July 1998 (Law No 98-546). The French authorities replied by letters of 3 May (A/33117) and 2 August 2004 (A/36007). The Commission had been informed of the scheme in a letter from the French authorities dated 16 March 1998 (A/32232). This does not constitute prior notification to the Commission under Article 88(3) of the EC Treaty, and the aid was therefore considered to have been implemented unlawfully.

Description of the measure

Article 39 C of the French General Tax Code stipulates that the tax-deductible depreciation of a leased asset may not exceed the leasing charge collected by the EIG less the other charges relating to the asset.

Article 39 CA of the General Tax Code provides for an exception to this rule, whereby financing operations of ‘significant economic and social interest’ carried out through the intermediary of a fiscal EIG are not subject to the depreciation restriction. The exception is granted on the approval of the Minister for the Budget.

At the Commission's request, the French authorities provided a list of the scheme's beneficiaries by sector.

Assessment of the measure

The Commission's view at this stage is that the measure may constitute State aid within the meaning of Article 87(1) of the EC Treaty. First, it appears to confer an advantage on the members of fiscal EIGs in the form of a reduction in taxable profits and the exemption of capital gains. It also appears to favour the end-users of leased assets, which are generally transport companies, mainly in the maritime transport sector. Second, the measure is granted through State resources by way of a reduction in taxable profits and a tax exemption resulting in a loss of revenue for the State. Third, it may affect trade between Member States in that it involves companies operating in sectors where there is intense intra-Community trade.

At this stage, the Commission takes the view that none of the exceptions laid down in Article 87(2) and (3) of the EC Treaty appears to apply in this case. The scheme does not appear to meet the conditions of the guidelines on national regional aid (1), the multisectoral framework on regional aid for large investment projects (2), the Community guidelines on State aid for environmental protection (3) or the Community guidelines on State aid to maritime transport (4). The Commission has found on numerous occasions that aid for purchasing vehicles or mobile assets is in principle incompatible with the common market.

Pursuant to Article 14 of Council Regulation (EC) No 659/1999, any unlawful aid may be recovered from the recipient.

TEXT OF LETTER

‘Par la présente, la Commission a l'honneur d'informer la France qu'après avoir examiné les informations fournies par vos autorités sur la mesure citée en objet, elle a décidé d'ouvrir la procédure prévue à l'article 88, paragraphe 2, du traité CE.

1.   PROCÉDURE

2.   DESCRIPTION DU RÉGIME

3.   APPRÉCIATION DU RÉGIME AU REGARD DE L'ARTICLE 87 DU TRAITÉ

3.1.   Existence d'un avantage

3.2.   Sélectivité

3.3.   L'avantage doit être octroyé au moyen de ressources de l'État

3.4.   Affectation de la concurrence et des échanges entre les Etats membres.

3.5.   Conclusion

4.   EXAMEN DE LA COMPATIBILITÉ

5.   CONCLUSION

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(1)OJ C 74, 10.3.1998.

(2)OJ C 70, 19.3.2002 (formerly OJ C 107, 7.4.1998).

(3)OJ C 37, 3.2.2001 (formerly OJ C 72, 10.3.1994).

(4)OJ C 13, 17.1.2004 (formerly OJ C 205, 5.7.1997).

(5)  Ou autres “véhicules fiscaux transparents”.

(6)JO L 12 du 15.1.2002, p. 33.

(7)JO C 384 du 10.12.1998.

(8)  Rapport no 449 (1997-1998) de MM. Alain LAMBERT et Philippe MARINI, fait au nom de la commission des finances, déposé le 26 mai 1998.

(9)  CJCE 2 juillet 1974 dans l'affaire C-173/73 Italie/Commission.

(10)  CJCE 12 juillet 1990, Société CdF Chimie azote et fertilisants SA et Société chimique de la Grande Paroisse SA contre Commission, aff. C-169/84, Rec. p. I-3083.

(11)  20 novembre 2003, aff. C-126/01.

(12)  Cas N 96/b/03 loi de programme pour l'outre-mer: mesures fiscales en faveur des DOM, N 502/02 Caraïbes Air Transport programme 2002, N 427/03 Air Austral, N 474/03 Air Caraïbes programme 2003.

(13)  26 septembre 2002, aff. C-351/98.

(14)JO L 337 du 13.12.2002 (antérieurement les lignes directrices concernant les aides à l'emploi, JO C 334 du 12.12.1995).

(15)JO C 74 du 10.3.1998.

(16)JO C 70 du 19.3.2002 (antérieurement l'encadrement multisectoriel des aides à finalité régionale en faveur de grands projets d'investissement JO C 107 du 7.4.1998).

(17)JO C 37 du 3.2.2001 (antérieurement l'encadrement communautaire des aides d'État pour la protection de l'environnent JO C 72 du 10.3.1994).

(18)JO C 13 du 17.1.2004 (antérieurement orientations communautaires sur les aides d'État au transport maritime, JO C 205 du 5.7.1997).

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