# CE2004070EN.01022101.xml

| 20.3.2004 | EN | Official Journal of the European Union | CE 70/221 |
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20.3.2004

EN

Official Journal of the European Union

CE 70/221

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(2004/C 70 E/238)

WRITTEN QUESTION P-3111/03

by Regina Bastos (PPE-DE) to the Commission

(17 October 2003)

Subject:   Possible state or Community subsidies to the German Rieker holding

Subject:

The German Rieker holding recently merged with SCHUH-UNION. Rieker recently relocated its shoe production to Romania, under the name ‘Rieker Romania Ltd.’ and also relocated production units to Poland and Turkey.

It is possible that this company is making use of subsidies from within the European Union to set up in one country, and then move out to other regions or countries so as to obtain fresh subsidies.

Were pre-accession subsidies granted to the candidate countries, specifically Poland as a country awaiting accession and possibly Romania as a candidate for accession, with the purpose of modernising the economic fabric?

Did Rieker benefit from such aid, specifically from the allocation of Community or state aid from the above countries, where it set up production units?

If so, on what dates were these allocations made, and what was their total value?

Answer given by Mr Monti on behalf of the Commission

(14 November 2003)

(14 November 2003)

In order to help the candidate countries carry out the necessary reforms, the Union channels financial assistance to various fields: through PHARE for institutional matters, through ISPA for investments in transport and the environment, and through Sapard for rural and agricultural development. The full list of assistance granted by the Union can be found on the Internet site of the Directorate-General for Enlargement.

By way of exemption from the prohibition of state aid laid down in Article 87(1) of the EC Treaty, state aid for investment can be approved on the basis of the guidelines on national regional aid (1) or Regulation (EC) No 70/2001 on the application of Articles 87 and 88 of the EC Treaty to state aid to small and medium-sized enterprises (2). In order to reduce the potential negative impact of relocation, The aid is granted on condition that the investment is maintained for a minimum of five years in the less-favoured region.

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Romania is a candidate for accession to the Union and, on that basis, is currently transposing the Community ‘acquis’ into domestic legislation and policies. The Community acquis, including the ‘acquis’ relating to state aid rules, is already applicable in Poland, which signed the Accession Treaty on 16 April 2003. The Commission is not aware of any individual aid having been granted to the company referred to by the Honourable Member. Aid could have been granted under an aid scheme that had been submitted to it. The Commission is going to consult the competent authorities in the countries in question in order to find out if aid has been granted to Rieker and under what conditions. It will inform the Honourable Member of the outcome of the consultations.

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(1)  OJ C 74, 10.3.1998 and amendments in OJ C 285, 9.9.2000.

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(2)  Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to state aid to small and medium-sized enterprises, OJ L 10, 13.1.2001.

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