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STATE AID — LUXEMBOURG

State aid No C 13/2004 — ‘Community guidelines for State aid concerning TSE tests, fallen stock and slaughterhouse waste. Rejection of proposals for appropriate measures’

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

(2006/C 93/07)

By means of the letter dated 16 March 2004, reproduced in the authentic language on the pages following this summary, the Commission notified the Grand Duchy of Luxembourg of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty concerning the abovementioned state aid.

Interested parties may submit their comments on the aid 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 Luxembourg. Confidential treatment of the identity of the interested party submitting the comments may be requested in writing, stating the reasons for the request.

SUMMARY

By letter dated 12 December 2002, the Commission asked the Luxembourg authorities to confirm that they accepted these proposals for appropriate measures in writing by 31 March 2003 at the latest, in accordance with the provisions of Chapter IX of Community guidelines for State aid concerning TSE tests, fallen stock and slaughterhouse waste.

After the Luxembourg authorities failed to reply, the Commission sent several reminders dated 23 April 2003, 9 July 2003 and lastly 10 October 2003. All of these reminders remained unanswered.

By letter dated 26 September 2003, the Minister for Agriculture, Viticulture and Rural Development of the Grand Duchy of Luxembourg requested a derogation from the application of the rules of the guidelines in order to allow the government to finance 50 % of the costs of slaughterhouse waste treatment after 31 December 2003.

This derogation request was refused by the Commission by letter of 10 October 2003. In this letter the Luxembourg authorities were also warned that, in accordance with point 53 of the aforementioned guidelines, if they did not confirm their acceptance in writing before the date indicated (within 10 days of receipt), the Commission would apply Article 19(2) of Regulation (EC) No 659/1999 and would initiate the procedure set out in this provision. No reply was received.

Evaluation

In accordance with point 53 of the guidelines, if a Member State did not confirm their acceptance in writing before this date, the Commisison would apply Article 19(2) of Regulation (EC) No 659/1999 and, if necessary, would initiate the procedure referred to by that provision.

The Commission has decided to initiate the procedure laid down in Article 88(2) of the Treaty because, despite repeated requests, the Luxembourg authorities have failed to communicate their acceptance of the appropriate measures in accordance with the new TSE guidelines and because, taking into consideration the express request for derogation from the rules presented by the Luxembourg authorities, at this stage doubts are growing concerning the compatibility of possible ad hoc aid or aid schemes, which Luxembourg would grant contrary to the aforementioned guidelines.

In this context, the Commission has requested the Luxembourg authorities:

TEXT OF LETTER

Procédure et description des faits

Évaluation

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(1) JO C 324 de 24.12.2000, p. 2.

(2)  Voir Arrêt du 29.6.1995, “Espagne v. Commission”, affaire C- 135/93, Recueil ??? et Arrêt du 15.10.1996, “IJssel-Vliet Combinatie BV v. Minister van Economische Zaken”, affaire C-311/9 ?, Recueil ???.

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