# CE2004088EN.01061201.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/612 |
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(2004/C 88 E/0632)

WRITTEN QUESTION E-1507/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(5 May 2003)

Subject:   Bankruptcy of Grundig AG and how to safeguard jobs in Portugal

The media have reported that Grundig AG filed for bankruptcy at the district court of Nuremberg, Germany on 14 April 2003.

Grundig currently controls the ‘Car InterMedia System’ (CIS) in Braga, Portugal, which employs around 700 workers, produces car radios and accounts for about 30 % of the production of Fehst Componentes Lda, which has more than 300 employees. All this demonstrates the viability and self-sufficiency of CIS.

Grundig has a substantial impact on employment and regional development in the Braga area, hence our concern at the decisions taken in Germany. It should be borne in mind that there are no alternative jobs and that the relocation of other multinationals in the north of the country has helped to aggravate the unemployment situation.

In view of the above, can the Commission say:

| 1. | what Community support the Grundig Group has received, in particular the Car InterMedia System, and what the terms of this support are; |
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| 2. | what steps will be taken to safeguard the activity of CIS in Braga and the jobs it provides directly or indirectly, bearing in mind that Portugal currently has the highest rate of unemployment in the European Union? |
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Supplementary answer given by Mrs Diamantopoulou on behalf of the Commission

(2 December 2003)

The Commission hereby informs the Honourable Member that the Grundig Group has received the following assistance:

| — | From the European Social Fund (ESF)
Community Support Framework I (CSF I)
A table is being sent directly to the Honourable Member and to the Secretariat of the Parliament.
Community Support Framework II (CSF II)
The last procedure registered for the two projects submitted by the Grundig Group for Measure 1 (‘Estimular a modernização empresarial do PRIME’) was the approval by the Ministry of Economic Affairs in accordance with the ESF dates and amounts set out in the following table:
(euros) NIF
Name of Promoter
Project No
Decision Date
FSE Investment
Eligible FSE Investment
FSE Subsidy 502302178
Grundig — Sist. de Electronica, Lda.
00/06144
12.12.2002
300 249,29
165 717,70
99 430,62 503263834
Grundig — Sist. de Electronica, Lda.
00/13274
18.08.2003
363 272,99
333 711,15
197 413,84 | (euros) | NIF | Name of Promoter | Project No | Decision Date | FSE Investment | Eligible FSE Investment | FSE Subsidy | 502302178 | Grundig — Sist. de Electronica, Lda. | 00/06144 | 12.12.2002 | 300 249,29 | 165 717,70 | 99 430,62 | 503263834 | Grundig — Sist. de Electronica, Lda. | 00/13274 | 18.08.2003 | 363 272,99 | 333 711,15 | 197 413,84 |
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| (euros) | | | | | | | | | | | | | | | | | | | | | | | |
| NIF | Name of Promoter | Project No | Decision Date | FSE Investment | Eligible FSE Investment | FSE Subsidy | | | | | | | | | | | | | | | | | |
| 502302178 | Grundig — Sist. de Electronica, Lda. | 00/06144 | 12.12.2002 | 300 249,29 | 165 717,70 | 99 430,62 | | | | | | | | | | | | | | | | | |
| 503263834 | Grundig — Sist. de Electronica, Lda. | 00/13274 | 18.08.2003 | 363 272,99 | 333 711,15 | 197 413,84 | | | | | | | | | | | | | | | | | |

| — | None of the projects mentioned has received payments under the ‘Programa de Incentivos à Modernização Económica (PRIME)’.
Community Support Framework III (CSF III) |
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| — | Project No 42/4655 under measure 3.3 ‘Inovação e Internacionalização de Estruturas Empresariais’ was presented as part of the ‘Programa Estratégico de Dinamização e Modernização da Indústria Portuguesa (PEDIP II)’. The closure of the ESF component for this project was approved on 16 August 2001 with the final amount of assistance coming to PTE 92 480 187 (EUR 461 289,23).
All the payments which were due have been made. |
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| — | From the European Regional Development Fund (ERDF)
ERDF co-financing of EUR 1 473 867,72 has been awarded to the company ‘Car InterMedia System’ (CIS) and is to be distributed as follows:
—
a sum of approximately EUR 84 285,26 for a project approved on 31 December 1992 under the Community's ‘Stride’ programme (CCA I), —
a total of EUR 1 389 582,46, under the programme to promote economic modernisation (CSF II). This last amount concerns financial assistance for the following projects:
—
‘Calibração de instrumentos’, approved on 31 December 1999 —
‘Modernização tecnológica’, approved on 17 April 1998 —
‘Diagnóstico e análise estratégica’, approved on 29 December 1995. | — | a sum of approximately EUR 84 285,26 for a project approved on 31 December 1992 under the Community's ‘Stride’ programme (CCA I), | — | a total of EUR 1 389 582,46, under the programme to promote economic modernisation (CSF II). This last amount concerns financial assistance for the following projects:
—
‘Calibração de instrumentos’, approved on 31 December 1999 —
‘Modernização tecnológica’, approved on 17 April 1998 —
‘Diagnóstico e análise estratégica’, approved on 29 December 1995. | — | ‘Calibração de instrumentos’, approved on 31 December 1999 | — | ‘Modernização tecnológica’, approved on 17 April 1998 | — | ‘Diagnóstico e análise estratégica’, approved on 29 December 1995. |
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| — | a sum of approximately EUR 84 285,26 for a project approved on 31 December 1992 under the Community's ‘Stride’ programme (CCA I), | | | | | | | | | | |
| — | a total of EUR 1 389 582,46, under the programme to promote economic modernisation (CSF II). This last amount concerns financial assistance for the following projects:
—
‘Calibração de instrumentos’, approved on 31 December 1999 —
‘Modernização tecnológica’, approved on 17 April 1998 —
‘Diagnóstico e análise estratégica’, approved on 29 December 1995. | — | ‘Calibração de instrumentos’, approved on 31 December 1999 | — | ‘Modernização tecnológica’, approved on 17 April 1998 | — | ‘Diagnóstico e análise estratégica’, approved on 29 December 1995. | | | | |
| — | ‘Calibração de instrumentos’, approved on 31 December 1999 | | | | | | | | | | |
| — | ‘Modernização tecnológica’, approved on 17 April 1998 | | | | | | | | | | |
| — | ‘Diagnóstico e análise estratégica’, approved on 29 December 1995. | | | | | | | | | | |

Assistance from the ERDF was awarded by the Member State under an aid scheme approved by the Commission. The Member State must ensure that Community rules are complied with.

If, within five years of the decision of the competent authorities on the contribution of the Structural Funds, a substantial modification occurs in a co-financed operation due to a cessation or change of location of a co-financed productive activity, the Member States are obliged to inform the Commission. Article 30(4) of the Council Regulation laying down general provisions on Structural Funds (applicable to the 2000-2006 programming period) provides that where such a modification occurs, Article 39 on financial corrections shall apply.

Moreover, in order to prevent delocalistion problems, the guidelines on national regional aid which were adopted by the Commission on 10 March 1998 stipulate that the assets eligible for funding and the employment created must be maintained for at least five years from the date on which the investment for which funding has been granted is made.

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