# Official Journal C 137/2008

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 137 |
| | |
| English edition | Information and Notices | Volume 514 June 2008 |

ISSN 1725-2423

Official Journal

of the European Union

C 137

English edition

Information and Notices

Volume 514 June 2008

---

| Notice No | Contents | page |
| --- | --- | --- |
| | II   Information |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2008/C 137/01 | Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  ) | 1 |
| 2008/C 137/02 | Non-opposition to a notified concentration (Case COMP/M.5143 — Barclays/CID) (
  1
  ) | 5 |
| 2008/C 137/03 | Non-opposition to a notified concentration (Case COMP/M.5131 — Rewe/Fegro-Selgros) (
  1
  ) | 5 |
| 2008/C 137/04 | Non-opposition to a notified concentration (Case COMP/M.4786 — Deutsche Bahn/Transfesa) (
  1
  ) | 6 |
| 2008/C 137/05 | Non-opposition to a notified concentration (Case COMP/M.5008 — Vivendi/Activision) (
  1
  ) | 6 |

Notice No

Contents

page

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2008/C 137/01

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  )

1

1

2008/C 137/02

Non-opposition to a notified concentration (Case COMP/M.5143 — Barclays/CID) (
  1
  )

1

5

2008/C 137/03

Non-opposition to a notified concentration (Case COMP/M.5131 — Rewe/Fegro-Selgros) (
  1
  )

1

5

2008/C 137/04

Non-opposition to a notified concentration (Case COMP/M.4786 — Deutsche Bahn/Transfesa) (
  1
  )

1

6

2008/C 137/05

Non-opposition to a notified concentration (Case COMP/M.5008 — Vivendi/Activision) (
  1
  )

1

6

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2008/C 137/06 | Interest rate applied by the European Central Bank to its main refinancing operations: 4,19 % on 1 June 2008 — Euro exchange rates | 7 |
| 2008/C 137/07 | Communication from the Commission — Notification of evidence of formal qualifications of specialised doctors, nurses responsible for general care, specialised dental practitioners, midwives and architects (
  1
  ) | 8 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2008/C 137/06

Interest rate applied by the European Central Bank to its main refinancing operations: 4,19 % on 1 June 2008 — Euro exchange rates

7

2008/C 137/07

Communication from the Commission — Notification of evidence of formal qualifications of specialised doctors, nurses responsible for general care, specialised dental practitioners, midwives and architects (
  1
  )

1

8

| | V   Announcements |
| --- | --- |
| | ADMINISTRATIVE PROCEDURES |
| | European Personnel Selection Office (EPSO) |
| 2008/C 137/08 | Notice of open competitions EPSO/AST/58-63/08 | 11 |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY |
| | Commission |
| 2008/C 137/09 | State aid — Italy — State aid C 19/08 (ex NN 13/08) — Misuse of rescue aid to Sandretto — Invitation to submit comments pursuant to Article 88(2) of the EC Treaty (
  1
  ) | 12 |
| 2008/C 137/10 | State aid — United Kingdom — State aid C 13/08 (ex N 589/07) — Aid to Channel 4 linked to digital switchover — Invitation to submit comments pursuant to Article 88(2) of the EC Treaty (
  1
  ) | 16 |

V   Announcements

ADMINISTRATIVE PROCEDURES

European Personnel Selection Office (EPSO)

2008/C 137/08

Notice of open competitions EPSO/AST/58-63/08

11

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

2008/C 137/09

State aid — Italy — State aid C 19/08 (ex NN 13/08) — Misuse of rescue aid to Sandretto — Invitation to submit comments pursuant to Article 88(2) of the EC Treaty (
  1
  )

1

12

2008/C 137/10

State aid — United Kingdom — State aid C 13/08 (ex N 589/07) — Aid to Channel 4 linked to digital switchover — Invitation to submit comments pursuant to Article 88(2) of the EC Treaty (
  1
  )

1

16

| | |
| --- | --- |
| | (1)   Text with EEA relevance |

---

(1)   Text with EEA relevance

1

| EN | |
| --- | --- |

EN

---

II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 4.6.2008 | EN | Official Journal of the European Union | C 137/1 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/1

---

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty

Cases where the Commission raises no objections

(Text with EEA relevance)

(2008/C 137/01)

| Date of adoption of the decision | 30.1.2008 |
| --- | --- |
| Reference number of the aid | N 435/07 |
| Member State | France |
| Region | — |
| Title (and/or name of the beneficiary) | Soutien de l'Agence de l'innovation industrielle en faveur du programme MINimage |
| Legal basis | Régime N 121/06 |
| Type of measure | Individual aid |
| Objective | Research and development |
| Form of aid | Direct grant, Reimbursable grant |
| Budget | Overall budget: EUR 69 932 308 |
| Intensity | 50 % |
| Duration | Until 31.12.2010 |
| Economic sectors | Electrical and optical equipment |
| Name and address of the granting authority | Agence de l'innovation industrielle |
| 195, Bd Saint Germain |
| F-75007 Paris |

Date of adoption of the decision

30.1.2008

Reference number of the aid

N 435/07

Member State

France

Region

—

Title (and/or name of the beneficiary)

Soutien de l'Agence de l'innovation industrielle en faveur du programme MINimage

Legal basis

Régime N 121/06

Type of measure

Individual aid

Objective

Research and development

Form of aid

Direct grant, Reimbursable grant

Budget

Overall budget: EUR 69 932 308

Intensity

50 %

Duration

Until 31.12.2010

Economic sectors

Electrical and optical equipment

Name and address of the granting authority

Agence de l'innovation industrielle

195, Bd Saint Germain

F-75007 Paris

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 16.4.2008 |
| --- | --- |
| Reference number of the aid | N 457/07 |
| Member State | Italy |
| Region | Marche |
| Title (and/or name of the beneficiary) | Promozione della ricerca industriale e dello sviluppo sperimentale in filiere tecnologico-produttive — Marche |
| Legal basis | Bando per la promozione della ricerca industriale e dello sviluppo sperimentale in filiere tecnologico-produttive |
| Type of measure | Aid scheme |
| Objective | Research and development |
| Form of aid | Direct grant |
| Budget | Overall budget: EUR 30 million |
| Intensity | 80 % |
| Duration | Until 31.12.2013 |
| Economic sectors | All sectors |
| Name and address of the granting authority | Regione Marche |
| Via Tiziano, 44 |
| I-60100 Ancona |

Date of adoption of the decision

16.4.2008

Reference number of the aid

N 457/07

Member State

Italy

Region

Marche

Title (and/or name of the beneficiary)

Promozione della ricerca industriale e dello sviluppo sperimentale in filiere tecnologico-produttive — Marche

Legal basis

Bando per la promozione della ricerca industriale e dello sviluppo sperimentale in filiere tecnologico-produttive

Type of measure

Aid scheme

Objective

Research and development

Form of aid

Direct grant

Budget

Overall budget: EUR 30 million

Intensity

80 %

Duration

Until 31.12.2013

Economic sectors

All sectors

Name and address of the granting authority

Regione Marche

Via Tiziano, 44

I-60100 Ancona

Other information

This decision supersedes the decision of 21 January 2008

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 2.4.2008 |
| --- | --- |
| Reference number of the aid | N 575/07 |
| Member State | Poland |
| Region | — |
| Title (and/or name of the beneficiary) | Pomoc państwa dla polskiego górnictwa w latach 2008–2010 |
| Legal basis | Ustawa z 7 września 2007 r. o funkcjonowaniu górnictwa węgla kamiennego w latach 2008–2015 |
| Type of measure | Aid scheme |
| Objective | Aid to cover exceptional costs |
| Form of aid | Grant, waiver of contributions to PFRON and charges and penalties payable to NFOSiGW and deferment of liabilities towards ZUS |
| Budget | PLN 1 305 598 500 |
| Intensity | — |
| Duration | 2008-2010 |
| Economic sectors | Coal industry |
| Name and address of the granting authority | Minister Gospodarki (MG) |
| Plac Trzech Krzyży 3/5 |
| PL-00-507 Warszawa |

Date of adoption of the decision

2.4.2008

Reference number of the aid

N 575/07

Member State

Poland

Region

—

Title (and/or name of the beneficiary)

Pomoc państwa dla polskiego górnictwa w latach 2008–2010

Legal basis

Ustawa z 7 września 2007 r. o funkcjonowaniu górnictwa węgla kamiennego w latach 2008–2015

Type of measure

Aid scheme

Objective

Aid to cover exceptional costs

Form of aid

Grant, waiver of contributions to PFRON and charges and penalties payable to NFOSiGW and deferment of liabilities towards ZUS

Budget

PLN 1 305 598 500

Intensity

—

Duration

2008-2010

Economic sectors

Coal industry

Name and address of the granting authority

Minister Gospodarki (MG)

Plac Trzech Krzyży 3/5

PL-00-507 Warszawa

| Zakład Ubezpieczeń Społecznych (ZUS) |
| --- |
| ul. Czerniakowska 16 |
| PL-00-701 Warszawa |

Zakład Ubezpieczeń Społecznych (ZUS)

ul. Czerniakowska 16

PL-00-701 Warszawa

| Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (NFOŚiGW) |
| --- |
| ul. Konstruktorska 3a |
| PL-02-673 Warszawa |

Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (NFOŚiGW)

ul. Konstruktorska 3a

PL-02-673 Warszawa

| Państwowy Fundusz Rehabilitacji Osób Niepełnosprawnych (PFRON) |
| --- |
| Al. Jana Pawła II 13 |
| PL-00-828 Warszawa |

Państwowy Fundusz Rehabilitacji Osób Niepełnosprawnych (PFRON)

Al. Jana Pawła II 13

PL-00-828 Warszawa

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 16.4.2008 |
| --- | --- |
| Reference number of the aid | NN 17/08 (ex N 301/07) |
| Member State | Italy |
| Region | Campania |
| Title (and/or name of the beneficiary) | Aiuto a favore di Digital Display Devices (MSF 2002) |
| Legal basis | Legge n. 488 del 19 dicembre 1992«Disciplina intervento aree depresse territorio nazionale»
  Legge n. 662 del 23 dicembre 1996, art. 2, commi 203 e segg. «Disciplina della programmazione negoziata/contratti di programma»
  DPR n. 175 del 26 marzo 2001
  Art. 60 legge finanziaria 2003 «Creazione fondo aree sottosviluppate»
  DM Attività produttive del 12 novembre 2003 modalità di accesso dei contratti di localizzazione/programma
  DM Sviluppo economico del 27 dicembre 2006 |
| Type of measure | Individual aid |
| Objective | Regional development |
| Form of aid | Direct grant |
| Budget | Overall budget: EUR 179,8 million |
| Intensity | 12,08 % |
| Duration | 27.12.2006-31.12.2009 |
| Economic sectors | Electrical and optical equipment |
| Name and address of the granting authority | Ministero dello Sviluppo economico |
| Via Molise, 2 |
| I-00187 Roma |

Date of adoption of the decision

16.4.2008

Reference number of the aid

NN 17/08 (ex N 301/07)

Member State

Italy

Region

Campania

Title (and/or name of the beneficiary)

Aiuto a favore di Digital Display Devices (MSF 2002)

Legal basis

Legge n. 488 del 19 dicembre 1992«Disciplina intervento aree depresse territorio nazionale»

Legge n. 662 del 23 dicembre 1996, art. 2, commi 203 e segg. «Disciplina della programmazione negoziata/contratti di programma»

DPR n. 175 del 26 marzo 2001

Art. 60 legge finanziaria 2003 «Creazione fondo aree sottosviluppate»

DM Attività produttive del 12 novembre 2003 modalità di accesso dei contratti di localizzazione/programma

DM Sviluppo economico del 27 dicembre 2006

Type of measure

Individual aid

Objective

Regional development

Form of aid

Direct grant

Budget

Overall budget: EUR 179,8 million

Intensity

12,08 %

Duration

27.12.2006-31.12.2009

Economic sectors

Electrical and optical equipment

Name and address of the granting authority

Ministero dello Sviluppo economico

Via Molise, 2

I-00187 Roma

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 26.3.2008 |
| --- | --- |
| Reference number of the aid | N 106/08 |
| Member State | Federal Republic of Germany |
| Region | — |
| Title (and/or name of the beneficiary) | Richtlinie zur Förderung der Anschaffung emmissionsarmer schwerer Nutzfahrzeuge |
| Legal basis | Haushaltsgesetz |
| Type of measure | aid scheme |
| Objective | Promotion of enhanced environmentally friendly heavy vehicles |
| Form of aid | Investment grants or interest allowances |
| Budget | Maximum EUR 120 million per year |
| Intensity | Maximum intensity 50 % of the eligible costs (additional investment costs) |
| Duration | 1.1.2007-31.12.2013 |
| Economic sectors | Transport sector |
| Name and address of the granting authority | Bundesministerium für Verkehr, Bau und Wohnungswesen |
| Invalidenstraße 4 |
| D-10115 Berlin |

Date of adoption of the decision

26.3.2008

Reference number of the aid

N 106/08

Member State

Federal Republic of Germany

Region

—

Title (and/or name of the beneficiary)

Richtlinie zur Förderung der Anschaffung emmissionsarmer schwerer Nutzfahrzeuge

Legal basis

Haushaltsgesetz

Type of measure

aid scheme

Objective

Promotion of enhanced environmentally friendly heavy vehicles

Form of aid

Investment grants or interest allowances

Budget

Maximum EUR 120 million per year

Intensity

Maximum intensity 50 % of the eligible costs (additional investment costs)

Duration

1.1.2007-31.12.2013

Economic sectors

Transport sector

Name and address of the granting authority

Bundesministerium für Verkehr, Bau und Wohnungswesen

Invalidenstraße 4

D-10115 Berlin

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

---

| 4.6.2008 | EN | Official Journal of the European Union | C 137/5 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/5

---

Non-opposition to a notified concentration

(Case COMP/M.5143 — Barclays/CID)

(Text with EEA relevance)

(2008/C 137/02)

On 15 May 2008, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32008M5143. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu). |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32008M5143. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu).

---

| 4.6.2008 | EN | Official Journal of the European Union | C 137/5 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/5

---

Non-opposition to a notified concentration

(Case COMP/M.5131 — Rewe/Fegro-Selgros)

(Text with EEA relevance)

(2008/C 137/03)

On 16 May 2008, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in German and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32008M5131. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu). |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32008M5131. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu).

---

| 4.6.2008 | EN | Official Journal of the European Union | C 137/6 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/6

---

Non-opposition to a notified concentration

(Case COMP/M.4786 — Deutsche Bahn/Transfesa)

(Text with EEA relevance)

(2008/C 137/04)

On 18 March 2008, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32008M4786. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu). |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32008M4786. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu).

---

| 4.6.2008 | EN | Official Journal of the European Union | C 137/6 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/6

---

Non-opposition to a notified concentration

(Case COMP/M.5008 — Vivendi/Activision)

(Text with EEA relevance)

(2008/C 137/05)

On 16 April 2008, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32008M5008. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu). |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32008M5008. EUR-Lex is the on-line access to European law (http://eur-lex.europa.eu).

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 4.6.2008 | EN | Official Journal of the European Union | C 137/7 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/7

---

Interest rate applied by the European Central Bank to its main refinancing operations (1):

4,19 % on 1 June 2008

Euro exchange rates (2)

3 June 2008

(2008/C 137/06)

1 euro=

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,5593 |
| JPY | Japanese yen | 163 |
| DKK | Danish krone | 7,4583 |
| GBP | Pound sterling | 0,79105 |
| SEK | Swedish krona | 9,3408 |
| CHF | Swiss franc | 1,611 |
| ISK | Iceland króna | 118,79 |
| NOK | Norwegian krone | 7,9615 |
| BGN | Bulgarian lev | 1,9558 |
| CZK | Czech koruna | 24,84 |
| EEK | Estonian kroon | 15,6466 |
| HUF | Hungarian forint | 241,48 |
| LTL | Lithuanian litas | 3,4528 |
| LVL | Latvian lats | 0,7031 |
| PLN | Polish zloty | 3,365 |
| RON | Romanian leu | 3,62 |
| SKK | Slovak koruna | 30,36 |
| TRY | Turkish lira | 1,9132 |
| AUD | Australian dollar | 1,6272 |
| CAD | Canadian dollar | 1,562 |
| HKD | Hong Kong dollar | 12,1702 |
| NZD | New Zealand dollar | 1,9822 |
| SGD | Singapore dollar | 2,1202 |
| KRW | South Korean won | 1 587,29 |
| ZAR | South African rand | 12,0315 |
| CNY | Chinese yuan renminbi | 10,7982 |
| HRK | Croatian kuna | 7,252 |
| IDR | Indonesian rupiah | 14 517,08 |
| MYR | Malaysian ringgit | 5,0256 |
| PHP | Philippine peso | 68,212 |
| RUB | Russian rouble | 36,902 |
| THB | Thai baht | 50,841 |
| BRL | Brazilian real | 2,5267 |
| MXN | Mexican peso | 16,0686 |

Currency

Exchange rate

USD

US dollar

1,5593

JPY

Japanese yen

163

DKK

Danish krone

7,4583

GBP

Pound sterling

0,79105

SEK

Swedish krona

9,3408

CHF

Swiss franc

1,611

ISK

Iceland króna

118,79

NOK

Norwegian krone

7,9615

BGN

Bulgarian lev

1,9558

CZK

Czech koruna

24,84

EEK

Estonian kroon

15,6466

HUF

Hungarian forint

241,48

LTL

Lithuanian litas

3,4528

LVL

Latvian lats

0,7031

PLN

Polish zloty

3,365

RON

Romanian leu

3,62

SKK

Slovak koruna

30,36

TRY

Turkish lira

1,9132

AUD

Australian dollar

1,6272

CAD

Canadian dollar

1,562

HKD

Hong Kong dollar

12,1702

NZD

New Zealand dollar

1,9822

SGD

Singapore dollar

2,1202

KRW

South Korean won

1 587,29

ZAR

South African rand

12,0315

CNY

Chinese yuan renminbi

10,7982

HRK

Croatian kuna

7,252

IDR

Indonesian rupiah

14 517,08

MYR

Malaysian ringgit

5,0256

PHP

Philippine peso

68,212

RUB

Russian rouble

36,902

THB

Thai baht

50,841

BRL

Brazilian real

2,5267

MXN

Mexican peso

16,0686

---

(1)

Rate applied to the most recent operation carried out before the indicated day. In the case of a variable rate tender, the interest rate is the marginal rate.

(2)  Source: reference exchange rate published by the ECB.

---

| 4.6.2008 | EN | Official Journal of the European Union | C 137/8 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/8

---

Communication from the Commission — Notification of evidence of formal qualifications of specialised doctors, nurses responsible for general care, specialised dental practitioners, midwives and architects

(Text with EEA relevance)

(2008/C 137/07)

Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications, as amended by Council Directive 2006/100/EC of 20 November 2006 adapting certain Directives in the field of freedom of movement of persons, by reason of the accession of Bulgaria and Romania, particularly Article 21(7) thereof, foresees that Member States shall notify the Commission of the legislative, regulatory and administrative provisions they adopt with regard to the issuing of evidence of formal qualifications in the fields covered by Chapter III of the Directive. The Commission shall publish an appropriate communication in the Official Journal of the European Union, indicating the titles adopted by the Member States for evidence of formal qualifications and, where appropriate, the body which issues the evidence of formal qualifications concerned, the certificate which accompanies it and, where appropriate, the corresponding professional title referred to in Annex V, points 5.1.1, 5.1.2, 5.1.3, 5.1.4, 5.2.2, 5.3.2, 5.3.3, 5.4.2, 5.5.2, 5.6.2 and 5.7.1 respectively.

Since several Member States have notified new titles or changes to the ones listed, the Commission publishes the present communication in accordance with Article 21(7) of Directive 2005/36/EC (1).

1.   Specialised doctors

The Netherlands has notified the following changes to titles in specialised medicine already listed (Annex V, point 5.1.3, to Directive 2005/36/EC):

| (a) | Under ‘Obstetrics and Gynaecology’:
  Obstetrie en Gynaecologie |
| --- | --- |

(a)

Under ‘Obstetrics and Gynaecology’:

| (b) | Under ‘Gastro-enterology’:
  Maag-darm-leverziekten |
| --- | --- |

(b)

Under ‘Gastro-enterology’:

| (c) | Under ‘Biological chemistry’:
  Klinische Chemie (until 4 April 2000) |
| --- | --- |

(c)

Under ‘Biological chemistry’:

| (d) | Under ‘Allergology’:
  Allergologie (until 12 August 1996). |
| --- | --- |

(d)

Under ‘Allergology’:

2.   Nurses responsible for general care

Poland has notified the following additional title of nurse responsible for general care (Annex V, point 5.2.2, to Directive 2005/36/EC):

| Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Professional title | Reference date |
| --- | --- | --- | --- | --- |
| Polska | Dyplom ukończenia studiów wyższych zawodowych na kierunku/specjalności pielęgniarstwo z tytułem „licencjat pielęgniarstwa” | Instytucja prowadząca kształcenie na poziomie wyższym uznana przez właściwe władze | Pielęgniarka | 1.5.2004 |

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Professional title

Reference date

Polska

Dyplom ukończenia studiów wyższych zawodowych na kierunku/specjalności pielęgniarstwo z tytułem „licencjat pielęgniarstwa”

Instytucja prowadząca kształcenie na poziomie wyższym uznana przez właściwe władze

Pielęgniarka

1.5.2004

3.   Specialised dental practitioners

| (1) | Portugal has notified the following titles of specialised dental practitioner in orthodontics and oral surgery (Annex V, point 5.3.3, to Directive 2005/36/EC):






  (a) | For ‘Orthodontics’:








  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Reference date |
| --- | --- | --- | --- | --- | --- |
| Portugal | Título de Especialista em Ortodontia | Ordem dos Médicos Dentistas (OMD) | 4.6.2008 |

(1)

Portugal has notified the following titles of specialised dental practitioner in orthodontics and oral surgery (Annex V, point 5.3.3, to Directive 2005/36/EC):

(a)

For ‘Orthodontics’:

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Reference date

Portugal

Título de Especialista em Ortodontia

Ordem dos Médicos Dentistas (OMD)

4.6.2008

| (b) | For ‘Oral surgery’:








  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Reference date |
| --- | --- | --- | --- | --- |
| Portugal | Título de Especialista em Cirurgia Oral | Ordem dos Médicos Dentistas (OMD) | 4.6.2008 |

(b)

For ‘Oral surgery’:

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Reference date

Portugal

Título de Especialista em Cirurgia Oral

Ordem dos Médicos Dentistas (OMD)

4.6.2008

| (2) | Sweden has notified the following changes to the titles of specialised dental practitioner already listed (Annex V, point 5.3.3, to Directive 2005/36/EC):






  (a) | For ‘Orthodontics’:








  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Reference date |
| --- | --- | --- | --- | --- | --- |
| Sverige | Bevis om specialistkompetens i ortodonti | Socialstyrelsen | 1.1.1994 |

(2)

Sweden has notified the following changes to the titles of specialised dental practitioner already listed (Annex V, point 5.3.3, to Directive 2005/36/EC):

(a)

For ‘Orthodontics’:

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Reference date

Sverige

Bevis om specialistkompetens i ortodonti

Socialstyrelsen

1.1.1994

| (b) | For ‘Oral surgery’:








  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Reference date |
| --- | --- | --- | --- | --- |
| Sverige | Bevis om specialistkompetens i oral kirurgi | Socialstyrelsen | 1.1.1994 |

(b)

For ‘Oral surgery’:

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Reference date

Sverige

Bevis om specialistkompetens i oral kirurgi

Socialstyrelsen

1.1.1994

4.   Midwives

Poland has notified the following additional title of midwife (Annex V, point 5.5.2, to Directive 2005/36/EC):

| Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Professional title | Reference date |
| --- | --- | --- | --- | --- |
| Polska | Dyplom ukończenia studiów wyższych zawodowych na kierunku/specjalności położnictwo z tytułem „licencjat położnictwa” | Instytucja prowadząca kształcenie na poziomie wyższym uznana przez właściwe władze | Położna | 1.5.2004 |

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Professional title

Reference date

Polska

Dyplom ukończenia studiów wyższych zawodowych na kierunku/specjalności położnictwo z tytułem „licencjat położnictwa”

Instytucja prowadząca kształcenie na poziomie wyższym uznana przez właściwe władze

Położna

1.5.2004

5.   Architects

| 1. | Italy has notified the following additional titles in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):









  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Certificate accompanying the evidence of qualifications | Reference academic year |
| --- | --- | --- | --- | --- | --- |
| Italia | Laurea specialistica in ingegneria edile — architettura | Università degli Studi di Salerno | Diploma di abilitazione all'esercizio indipendente della professione che viene rilasciato dal ministero dell'Istruzione, dell'università e della ricerca dopo che il candidato ha sostenuto con esito positivo l'esame di Stato davanti ad una commissione competente | 2005/2006 |
| Università degli Studi della Calabria | 2003/2004 |
| Università degli Studi di Brescia | 2001/2002 |
| Laurea specialistica in architettura | Facoltà di architettura dell'Università degli Studi «G. D'Annunzio» di Chieti-Pescara | 2001/2002 |
| Facoltà di architettura, pianificazione e ambiente del Politecnico di Milano | 2001/2002 |
| Università IUAV di Venezia | 2002/2003 |
| Laurea specialistica in architettura (Restauro) | Facoltà di architettura di «Valle Giulia» dell'Università degli Studi «La Sapienza» di Roma | 2004/2005 |
| Università degli Studi di Roma Tre — Facoltà di Architettura | 2001/2002 |
| Laurea specialistica in architettura — progettazione architettonica e urbana | Facoltà «Ludovico Quaroni» dell'Università degli Studi «La Sapienza» di Roma | 2000/2001 |
| Laurea magistrale/specialistica in architettura | Facoltà di architettura dell'Università degli Studi di Trieste | 2001/2002 |

1.

Italy has notified the following additional titles in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Certificate accompanying the evidence of qualifications

Reference academic year

Italia

Laurea specialistica in ingegneria edile — architettura

Università degli Studi di Salerno

Diploma di abilitazione all'esercizio indipendente della professione che viene rilasciato dal ministero dell'Istruzione, dell'università e della ricerca dopo che il candidato ha sostenuto con esito positivo l'esame di Stato davanti ad una commissione competente

2005/2006

Università degli Studi della Calabria

2003/2004

Università degli Studi di Brescia

2001/2002

Laurea specialistica in architettura

Facoltà di architettura dell'Università degli Studi «G. D'Annunzio» di Chieti-Pescara

2001/2002

Facoltà di architettura, pianificazione e ambiente del Politecnico di Milano

2001/2002

Università IUAV di Venezia

2002/2003

Laurea specialistica in architettura (Restauro)

Facoltà di architettura di «Valle Giulia» dell'Università degli Studi «La Sapienza» di Roma

2004/2005

Università degli Studi di Roma Tre — Facoltà di Architettura

2001/2002

Laurea specialistica in architettura — progettazione architettonica e urbana

Facoltà «Ludovico Quaroni» dell'Università degli Studi «La Sapienza» di Roma

2000/2001

Laurea magistrale/specialistica in architettura

Facoltà di architettura dell'Università degli Studi di Trieste

2001/2002

| 2. | Slovenia has notified the following additional title in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):









  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Certificate accompanying the evidence of qualifications | Reference academic year |
| --- | --- | --- | --- | --- | --- |
| Slovenija | Magister inženir arhitekture/Magistrica inženirka arhitekture | Univerza v Ljubljani, Fakulteta za Arhitekturo | | 2007/2008 |

2.

Slovenia has notified the following additional title in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Certificate accompanying the evidence of qualifications

Reference academic year

Slovenija

Magister inženir arhitekture/Magistrica inženirka arhitekture

Univerza v Ljubljani, Fakulteta za Arhitekturo

2007/2008

| 3. | The Czech Republic has notified the following additional title in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):









  Country | Evidence of formal qualifications | Body awarding the evidence of qualifications | Certificate accompanying the evidence of qualifications | Reference academic year |
| --- | --- | --- | --- | --- | --- |
| Česká republika | Architektura a urbanismus | Fakulta architektury, České vysoké učení technické (ČVUT) v Praze | | 2007/2008 |

3.

The Czech Republic has notified the following additional title in the field of architecture (Annex V, point 5.7.1, to Directive 2005/36/EC):

Country

Evidence of formal qualifications

Body awarding the evidence of qualifications

Certificate accompanying the evidence of qualifications

Reference academic year

Česká republika

Architektura a urbanismus

Fakulta architektury, České vysoké učení technické (ČVUT) v Praze

2007/2008

---

(1)  A consolidated version of Annex V to Directive 2005/36/EC can be found at:

http://ec.europa.eu/internal_market/qualifications/

---

V Announcements

ADMINISTRATIVE PROCEDURES

European Personnel Selection Office (EPSO)

| 4.6.2008 | EN | Official Journal of the European Union | C 137/11 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/11

---

NOTICE OF OPEN COMPETITIONS EPSO/AST/58-63/08

(2008/C 137/08)

The European Personnel Selection Office (EPSO) is organising the following open competitions:

| — | EPSO/AST/58/08 — Mechanical Engineering, |
| --- | --- |

—

EPSO/AST/58/08 — Mechanical Engineering,

| — | EPSO/AST/59/08 — Laboratory Technical Support, |
| --- | --- |

—

EPSO/AST/59/08 — Laboratory Technical Support,

| — | EPSO/AST/60/08 — Civil and Electrical Engineering |
| --- | --- |

—

EPSO/AST/60/08 — Civil and Electrical Engineering

to recruit laboratory assistants (AST1) in the field of research and nuclear energy, mainly for technical support and laboratory work,

and

| — | EPSO/AST/61/08 — Laboratory and Infrastructure Technicians, |
| --- | --- |

—

EPSO/AST/61/08 — Laboratory and Infrastructure Technicians,

| — | EPSO/AST/62/08 — Technicians in the nuclear field, |
| --- | --- |

—

EPSO/AST/62/08 — Technicians in the nuclear field,

| — | EPSO/AST/63/08 — Nuclear Inspectors |
| --- | --- |

—

EPSO/AST/63/08 — Nuclear Inspectors

are being held to recruit assistants (AST3) in the nuclear field.

The competition notices are published in Official Journal C 137 A of 4 June 2008 in English, French and German only.

Further details can be found on the EPSO website: http://europa.eu/epso

---

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

| 4.6.2008 | EN | Official Journal of the European Union | C 137/12 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/12

---

STATE AID — ITALY

State aid C 19/08 (ex NN 13/08) — Misuse of rescue aid to Sandretto

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

(Text with EEA relevance)

(2008/C 137/09)

By means of the letter dated 16 April 2008 reproduced in the authentic language on the pages following this summary, the Commission notified Italy of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty concerning the above-mentioned aid measure.

Interested parties may submit their comments on the aid 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:

| European Commission |
| --- |
| Directorate-General Competition |
| State Aid Registry |
| B-1049 Brussels |
| Fax (32-2) 296 12 42 |

European Commission

Directorate-General Competition

State Aid Registry

B-1049 Brussels

Fax (32-2) 296 12 42

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

TEXT OF SUMMARY

PROCEDURE

On 29 January 2007, the Commission approved rescue aid of EUR 5 million to Sandretto Indusrie Srl (‘Sandretto’). Not having received any information on the progress, the Commission sent a letter to Italy on 14 December 2007 asking for an update on the case. Italy answered on 21 January 2008 informing the Commission that the aid was granted in two parts: on 24 July 2007 and on 13 August 2007. On 23 January 2008, the Commission requested Italy to confirm that the guarantee expires on 24 January 2008 or to provide a restructuring plan. Italy replied on 8 February 2008 informing the Commission that the first part of the guarantee expired on 24 January 2008 and that the company went into bankruptcy.

DESCRIPTION

Sandretto is a manufacturer of press equipment for the injection of plastic materials, located in the province of Turin and employing 350 people. It has been in difficulties since 2005. The rescue aid approved by the Commission was granted in the form of a guarantee on two credit lines of 2,5 million each. The aid was granted almost 6 months after its approval. Italy has informed the Commission that an attempt to sell Sandretto to a private investor failed early 2008.

ASSESSMENT

The Commission has no indications that Sandretto ceased to benefit from the rescue aid after the expiry of the 6-month period. Moreover, the Commission considers that the important time-gap between the authorisation and the granting of the aid needs to be justified by the special circumstances of the case and in the present case the Commission has doubts whether such special circumstances are present. In addition, considering that Italy has not provided any information on the bankruptcy procedure of Sandretto, the Commission has doubts whether the effective recovery of any misused amount of aid is ensured in the procedure. Finally, as Italy has not submitted a restructuring plan, the Commission, at this stage, finds it unlikely that the prolongation of the rescue aid could be found compatible as a restructuring aid.

TEXT OF LETTER

‘La Commissione informa l'Italia che, dopo aver esaminato le informazioni trasmesse dalle autorità italiane sull'aiuto in oggetto, ha deciso di avviare il procedimento di cui all'articolo 88, paragrafo 2, del trattato CE.

I.   PROCEDIMENTO

| (1) | Il 29 gennaio 2007 la Commissione ha approvato un aiuto per il salvataggio dell'importo di 5 Mio EUR a favore di Sandretto Industrie Srl (in seguito denominata “Sandretto”) (1). L'aiuto consisteva in una garanzia su due linee di credito fornite da banche private, le cui condizioni erano da definire dopo l'approvazione della Commissione. L'Italia si era impegnata a revocare la garanzia al più tardi sei mesi dopo la sua concessione e a fornire alla Commissione un piano di ristrutturazione per Sandretto entro sei mesi dalla data di autorizzazione dell'aiuto. |
| --- | --- |

(1)

Il 29 gennaio 2007 la Commissione ha approvato un aiuto per il salvataggio dell'importo di 5 Mio EUR a favore di Sandretto Industrie Srl (in seguito denominata “Sandretto”) (1). L'aiuto consisteva in una garanzia su due linee di credito fornite da banche private, le cui condizioni erano da definire dopo l'approvazione della Commissione. L'Italia si era impegnata a revocare la garanzia al più tardi sei mesi dopo la sua concessione e a fornire alla Commissione un piano di ristrutturazione per Sandretto entro sei mesi dalla data di autorizzazione dell'aiuto.

| (2) | In mancanza di informazioni circa gli sviluppi della situazione, la Commissione ha inviato una lettera all'Italia il 14 dicembre 2007 (D/54995) per chiedere un aggiornamento sul caso. |
| --- | --- |

(2)

In mancanza di informazioni circa gli sviluppi della situazione, la Commissione ha inviato una lettera all'Italia il 14 dicembre 2007 (D/54995) per chiedere un aggiornamento sul caso.

| (3) | L'Italia ha risposto con lettera del 21 gennaio 2008 (A/1233), informando la Commissione che l'aiuto era stato versato in due tranche: la prima erogata il 24 luglio 2007 e la seconda il 13 agosto 2007. |
| --- | --- |

(3)

L'Italia ha risposto con lettera del 21 gennaio 2008 (A/1233), informando la Commissione che l'aiuto era stato versato in due tranche: la prima erogata il 24 luglio 2007 e la seconda il 13 agosto 2007.

| (4) | Con lettera del 23 gennaio 2008 (D/50314) la Commissione ha chiesto all'Italia di confermare la cessazione della garanzia al 24 gennaio 2008 o in alternativa di trasmetterle un piano di ristrutturazione, aggiungendo che in mancanza di una sollecita risposta i servizi della Commissione avrebbero proposto l'avvio del procedimento di indagine formale. |
| --- | --- |

(4)

Con lettera del 23 gennaio 2008 (D/50314) la Commissione ha chiesto all'Italia di confermare la cessazione della garanzia al 24 gennaio 2008 o in alternativa di trasmetterle un piano di ristrutturazione, aggiungendo che in mancanza di una sollecita risposta i servizi della Commissione avrebbero proposto l'avvio del procedimento di indagine formale.

| (5) | L'8 febbraio 2008 l'Italia ha risposto (A/2526) alla Commissione che la prima tranche della garanzia cessava il 24 gennaio 2008 e che la società era fallita. |
| --- | --- |

(5)

L'8 febbraio 2008 l'Italia ha risposto (A/2526) alla Commissione che la prima tranche della garanzia cessava il 24 gennaio 2008 e che la società era fallita.

II.   DESCRIZIONE

2.1.   L'impresa interessata

| (6) | Sandretto è un produttore di presse per iniezione per materie plastiche. L'impresa è stata fondata nel 1947 come “Fratelli Sandretto” e da allora ha cambiato più volte denominazione e forma societaria: l'ultimo di questi cambiamenti risale al 18 maggio 2005 quando l'impresa ha assunto la denominazione di Sandretto Industrie Srl Sandretto ha due stabilimenti di produzione situati nella provincia di Torino nei comuni di Grugliasco e Pont Canavese, entrambi ammessi a beneficiare di aiuti ai sensi dell'articolo 87, paragrafo 3, lettera c), del trattato CE. Attualmente l'impresa appartiene ad un unico azionista, la società statunitense Taylor's International LLC. |
| --- | --- |

(6)

Sandretto è un produttore di presse per iniezione per materie plastiche. L'impresa è stata fondata nel 1947 come “Fratelli Sandretto” e da allora ha cambiato più volte denominazione e forma societaria: l'ultimo di questi cambiamenti risale al 18 maggio 2005 quando l'impresa ha assunto la denominazione di Sandretto Industrie Srl Sandretto ha due stabilimenti di produzione situati nella provincia di Torino nei comuni di Grugliasco e Pont Canavese, entrambi ammessi a beneficiare di aiuti ai sensi dell'articolo 87, paragrafo 3, lettera c), del trattato CE. Attualmente l'impresa appartiene ad un unico azionista, la società statunitense Taylor's International LLC.

| (7) | Sandretto ha 350 dipendenti e rappresenta la principale fonte di impiego per l'economia locale. Le sue attività commerciali sono principalmente orientate al mercato europeo, con varie imprese controllate in Francia, Spagna, Regno Unito e Paesi Bassi. Sandretto è specializzata in macchinari per usi speciali in mercati di nicchia: nel 2003, quando ancora non si erano manifestate difficoltà finanziarie, era al decimo posto fra gli operatori di questo mercato in Europa. |
| --- | --- |

(7)

Sandretto ha 350 dipendenti e rappresenta la principale fonte di impiego per l'economia locale. Le sue attività commerciali sono principalmente orientate al mercato europeo, con varie imprese controllate in Francia, Spagna, Regno Unito e Paesi Bassi. Sandretto è specializzata in macchinari per usi speciali in mercati di nicchia: nel 2003, quando ancora non si erano manifestate difficoltà finanziarie, era al decimo posto fra gli operatori di questo mercato in Europa.

| (8) | Nel 2005 Sandretto ha realizzato un fatturato di 21,58 Mio EUR e subito perdite per 43,74 Mio EUR. Il tribunale di Torino, con decisione del 16 marzo 2006, ha ammesso la società alla procedura di amministrazione straordinaria (2). Di conseguenza, l'azionista unico ha automaticamente perso il controllo sulla gestione dell'impresa, passata ai tre commissari straordinari nominati dal ministero competente. |
| --- | --- |

(8)

Nel 2005 Sandretto ha realizzato un fatturato di 21,58 Mio EUR e subito perdite per 43,74 Mio EUR. Il tribunale di Torino, con decisione del 16 marzo 2006, ha ammesso la società alla procedura di amministrazione straordinaria (2). Di conseguenza, l'azionista unico ha automaticamente perso il controllo sulla gestione dell'impresa, passata ai tre commissari straordinari nominati dal ministero competente.

| (9) | Secondo le autorità italiane, la principale causa delle difficoltà della società è da imputarsi al suo rilievo da parte dell'investitore americano Taylor's International LLC che non è riuscito ad effettuare gli investimenti necessari provocando l'inattività degli stabilimenti produttivi. |
| --- | --- |

(9)

Secondo le autorità italiane, la principale causa delle difficoltà della società è da imputarsi al suo rilievo da parte dell'investitore americano Taylor's International LLC che non è riuscito ad effettuare gli investimenti necessari provocando l'inattività degli stabilimenti produttivi.

| (10) | Nel giugno 2007 è stato pubblicato un invito a manifestare l'interesse all'acquisto, per vendere Sandretto ad un nuovo investitore privato. Secondo quanto riferito dalle autorità italiane, questo tentativo non ha avuto buon esito e la società è andata in fallimento (3). La Commissione non è al corrente se Sandretto abbia cessato la sua attività. |
| --- | --- |

(10)

Nel giugno 2007 è stato pubblicato un invito a manifestare l'interesse all'acquisto, per vendere Sandretto ad un nuovo investitore privato. Secondo quanto riferito dalle autorità italiane, questo tentativo non ha avuto buon esito e la società è andata in fallimento (3). La Commissione non è al corrente se Sandretto abbia cessato la sua attività.

2.2.   La misura di aiuto

| (11) | Sebbene sia stato approvato il 29 gennaio 2007, l'aiuto per il salvataggio è stato erogato solo sei mesi dopo: la prima tranche il 24 luglio 2007 e la seconda il 13 agosto 2007. Secondo l'Italia questo periodo di tempo era necessario agli amministratori straordinari per scegliere le banche private che avrebbero concesso le linee di credito e per accordarsi sulle condizioni del finanziamento. |
| --- | --- |

(11)

Sebbene sia stato approvato il 29 gennaio 2007, l'aiuto per il salvataggio è stato erogato solo sei mesi dopo: la prima tranche il 24 luglio 2007 e la seconda il 13 agosto 2007. Secondo l'Italia questo periodo di tempo era necessario agli amministratori straordinari per scegliere le banche private che avrebbero concesso le linee di credito e per accordarsi sulle condizioni del finanziamento.

| (12) | L'aiuto al salvataggio è stato concesso nella forma di una garanzia su due linee di credito di 2,5 Mio EUR ciascuna, fornite dalla Banca Popolare di Novara e Banca Intesa Sanpaolo. |
| --- | --- |

(12)

L'aiuto al salvataggio è stato concesso nella forma di una garanzia su due linee di credito di 2,5 Mio EUR ciascuna, fornite dalla Banca Popolare di Novara e Banca Intesa Sanpaolo.

| (13) | Secondo l'Italia, la prima tranche dell'aiuto è terminata il 24 gennaio 2008. Tuttavia, nonostante due richieste da parte della Commissione, le autorità italiane non hanno presentato alcuna prova che la prima tranche della garanzia è terminata, né hanno fornito alcuna informazione sulla seconda tranche, o un piano di ristrutturazione (o di liquidazione) per la società. |
| --- | --- |

(13)

Secondo l'Italia, la prima tranche dell'aiuto è terminata il 24 gennaio 2008. Tuttavia, nonostante due richieste da parte della Commissione, le autorità italiane non hanno presentato alcuna prova che la prima tranche della garanzia è terminata, né hanno fornito alcuna informazione sulla seconda tranche, o un piano di ristrutturazione (o di liquidazione) per la società.

III.   VALUTAZIONE

3.1.   Esistenza di aiuto

| (14) | La Commissione ritiene che la misura di aiuto per il salvataggio costituisca aiuto di Stato, ai sensi dell'articolo 87, paragrafo 1, del trattato CE. La misura ha assunto la forma di una garanzia, che costituisce un beneficio finanziato da risorse pubbliche. L'aiuto è selettivo in quanto riguarda solo Sandretto ed è probabile che falsi la concorrenza poiché garantisce all'impresa un vantaggio rispetto ad altri concorrenti che non ne fruiscono. Infine, il mercato in cui Sandretto opera è caratterizzato da notevoli scambi tra Stati membri. |
| --- | --- |

(14)

La Commissione ritiene che la misura di aiuto per il salvataggio costituisca aiuto di Stato, ai sensi dell'articolo 87, paragrafo 1, del trattato CE. La misura ha assunto la forma di una garanzia, che costituisce un beneficio finanziato da risorse pubbliche. L'aiuto è selettivo in quanto riguarda solo Sandretto ed è probabile che falsi la concorrenza poiché garantisce all'impresa un vantaggio rispetto ad altri concorrenti che non ne fruiscono. Infine, il mercato in cui Sandretto opera è caratterizzato da notevoli scambi tra Stati membri.

3.2.   Applicazione abusiva di aiuto per il salvataggio

| (15) | La Commissione ha approvato l'aiuto per il salvataggio a favore di Sandretto (1). In seguito a questa decisione, l'aiuto per il salvataggio, se limitato a sei mesi, è compatibile col mercato comune. Per la proroga dell'aiuto per il salvataggio oltre il periodo di sei mesi è necessaria una valutazione sulla base degli Orientamenti comunitari sugli aiuti di Stato per il salvataggio e la ristrutturazione di imprese in difficoltà [in seguito, “gli orientamenti” (4)], per verificare se costituisca un'applicazione abusiva dell'aiuto per il salvataggio o se possa essere considerata compatibile a titolo di aiuto per la ristrutturazione. |
| --- | --- |

(15)

La Commissione ha approvato l'aiuto per il salvataggio a favore di Sandretto (1). In seguito a questa decisione, l'aiuto per il salvataggio, se limitato a sei mesi, è compatibile col mercato comune. Per la proroga dell'aiuto per il salvataggio oltre il periodo di sei mesi è necessaria una valutazione sulla base degli Orientamenti comunitari sugli aiuti di Stato per il salvataggio e la ristrutturazione di imprese in difficoltà [in seguito, “gli orientamenti” (4)], per verificare se costituisca un'applicazione abusiva dell'aiuto per il salvataggio o se possa essere considerata compatibile a titolo di aiuto per la ristrutturazione.

| (16) | In base al punto 25, lettera a) degli orientamenti, l'aiuto per il salvataggio deve cessare entro un termine non superiore a sei mesi dall'erogazione della prima tranche all'impresa. Il punto 25, lettera c), degli orientamenti sembra fissare un'altra data di inizio per il calcolo del termine dei sei mesi, stabilendo che lo Stato membro deve presentare alla Commissione, entro sei mesi dall'autorizzazione dell'aiuto per il salvataggio, un piano di ristrutturazione (o di liquidazione) o la prova che la garanzia è stata revocata. Questo ultimo punto sembra basarsi sull'ipotesi che l'aiuto per il salvataggio, per la sua natura temporanea e di urgenza, viene di solito concesso immediatamente dopo la sua autorizzazione da parte della Commissione. |
| --- | --- |

(16)

In base al punto 25, lettera a) degli orientamenti, l'aiuto per il salvataggio deve cessare entro un termine non superiore a sei mesi dall'erogazione della prima tranche all'impresa. Il punto 25, lettera c), degli orientamenti sembra fissare un'altra data di inizio per il calcolo del termine dei sei mesi, stabilendo che lo Stato membro deve presentare alla Commissione, entro sei mesi dall'autorizzazione dell'aiuto per il salvataggio, un piano di ristrutturazione (o di liquidazione) o la prova che la garanzia è stata revocata. Questo ultimo punto sembra basarsi sull'ipotesi che l'aiuto per il salvataggio, per la sua natura temporanea e di urgenza, viene di solito concesso immediatamente dopo la sua autorizzazione da parte della Commissione.

| (17) | Tuttavia, nel presente caso, l'Italia ha concesso l'aiuto per il salvataggio quasi sei mesi dopo la sua approvazione da parte della Commissione e pertanto, in base alla semplice enunciazione degli orientamenti, la data di inizio del termine di sei mesi può risultare non evidente. Poiché la Commissione ritiene che eventuali distorsioni della concorrenza possono verificarsi a partire dal momento in cui l'aiuto è effettivamente erogato, la data che dà avvio al termine di sei mesi coincide con la concessione all'impresa della prima rata che è assistita dalla garanzia. |
| --- | --- |

(17)

Tuttavia, nel presente caso, l'Italia ha concesso l'aiuto per il salvataggio quasi sei mesi dopo la sua approvazione da parte della Commissione e pertanto, in base alla semplice enunciazione degli orientamenti, la data di inizio del termine di sei mesi può risultare non evidente. Poiché la Commissione ritiene che eventuali distorsioni della concorrenza possono verificarsi a partire dal momento in cui l'aiuto è effettivamente erogato, la data che dà avvio al termine di sei mesi coincide con la concessione all'impresa della prima rata che è assistita dalla garanzia.

| (18) | Di conseguenza, il termine per la cessazione della garanzia o per la presentazione di un piano di ristrutturazione scade, conformemente al punto 25, lettera a), degli orientamenti, sei mesi dopo la concessione della prima tranche, ossia il 24 gennaio 2008. |
| --- | --- |

(18)

Di conseguenza, il termine per la cessazione della garanzia o per la presentazione di un piano di ristrutturazione scade, conformemente al punto 25, lettera a), degli orientamenti, sei mesi dopo la concessione della prima tranche, ossia il 24 gennaio 2008.

| (19) | Al momento della notifica dell'aiuto per il salvataggio, l'Italia si era impegnata a revocare la garanzia al più tardi sei mesi dopo la sua concessione e a fornire alla Commissione un piano di ristrutturazione per Sandretto entro sei mesi dall'autorizzazione dell'aiuto. |
| --- | --- |

(19)

Al momento della notifica dell'aiuto per il salvataggio, l'Italia si era impegnata a revocare la garanzia al più tardi sei mesi dopo la sua concessione e a fornire alla Commissione un piano di ristrutturazione per Sandretto entro sei mesi dall'autorizzazione dell'aiuto.

| (20) | Tuttavia, nonostante le richieste della Commissione, le autorità italiane non hanno presentato alcun piano di ristrutturazione (o di liquidazione), né fornito la prova della cessazione della garanzia a seguito del rimborso della prima rata del prestito. Ad eccezione di una breve lettera in cui affermavano che la data di cessazione per la prima tranche dell'aiuto era il 24 gennaio 2008 (data presunta del rimborso della prima rata del prestito), le autorità italiane non hanno presentato sinora alcuna prova dell'effettiva cessazione della garanzia né dell'effettivo rimborso della prima rata del prestito. Riguardo alla seconda tranche, l'Italia non ha fornito alcun tipo di informazione relativa alla cessazione della garanzia e/o al rimborso del prestito. |
| --- | --- |

(20)

Tuttavia, nonostante le richieste della Commissione, le autorità italiane non hanno presentato alcun piano di ristrutturazione (o di liquidazione), né fornito la prova della cessazione della garanzia a seguito del rimborso della prima rata del prestito. Ad eccezione di una breve lettera in cui affermavano che la data di cessazione per la prima tranche dell'aiuto era il 24 gennaio 2008 (data presunta del rimborso della prima rata del prestito), le autorità italiane non hanno presentato sinora alcuna prova dell'effettiva cessazione della garanzia né dell'effettivo rimborso della prima rata del prestito. Riguardo alla seconda tranche, l'Italia non ha fornito alcun tipo di informazione relativa alla cessazione della garanzia e/o al rimborso del prestito.

| (21) | Pertanto la Commissione non dispone di elementi attestanti che la società abbia cessato di beneficiare dell'aiuto per il salvataggio dopo il termine dei sei mesi. |
| --- | --- |

(21)

Pertanto la Commissione non dispone di elementi attestanti che la società abbia cessato di beneficiare dell'aiuto per il salvataggio dopo il termine dei sei mesi.

| (22) | Inoltre, fra l'autorizzazione e la concessione dell'aiuto per il salvataggio è intercorso un lasso di tempo considerevole: questo ritardo di quasi sei mesi suscita dubbi riguardo alla necessità dell'aiuto. Conformemente al punto 15 degli orientamenti, l'aiuto per il salvataggio è uno strumento previsto per sostenere un'impresa che affronta un'acuta crisi di liquidità allo scopo di consentire di mantenerla in attività per il tempo necessario a elaborare un piano di ristrutturazione. L'aiuto per il salvataggio è quindi caratterizzato dalla rapidità e dalla temporaneità e la decisione di approvazione della Commissione non ne autorizza la sua corresponsione ad una data di gran lunga posteriore, quando le circostanze originarie che ne avevano giustificato l'approvazione potrebbero non sussistere più. |
| --- | --- |

(22)

Inoltre, fra l'autorizzazione e la concessione dell'aiuto per il salvataggio è intercorso un lasso di tempo considerevole: questo ritardo di quasi sei mesi suscita dubbi riguardo alla necessità dell'aiuto. Conformemente al punto 15 degli orientamenti, l'aiuto per il salvataggio è uno strumento previsto per sostenere un'impresa che affronta un'acuta crisi di liquidità allo scopo di consentire di mantenerla in attività per il tempo necessario a elaborare un piano di ristrutturazione. L'aiuto per il salvataggio è quindi caratterizzato dalla rapidità e dalla temporaneità e la decisione di approvazione della Commissione non ne autorizza la sua corresponsione ad una data di gran lunga posteriore, quando le circostanze originarie che ne avevano giustificato l'approvazione potrebbero non sussistere più.

| (23) | Le autorità italiane sostengono che il periodo di tempo intercorso era necessario per concordare con le banche le condizioni del finanziamento e affermano che la società era ancora in serie difficoltà sei mesi dopo l'autorizzazione. La Commissione ritiene che un lasso di tempo di tale durata fra l'autorizzazione e la concessione dell'aiuto debba essere giustificato da speciali circostanze e nutre dubbi circa la loro presenza nel caso di specie. |
| --- | --- |

(23)

Le autorità italiane sostengono che il periodo di tempo intercorso era necessario per concordare con le banche le condizioni del finanziamento e affermano che la società era ancora in serie difficoltà sei mesi dopo l'autorizzazione. La Commissione ritiene che un lasso di tempo di tale durata fra l'autorizzazione e la concessione dell'aiuto debba essere giustificato da speciali circostanze e nutre dubbi circa la loro presenza nel caso di specie.

| (24) | Inoltre, l'Italia non ha trasmesso informazioni circa la procedura fallimentare applicata a Sandretto: in particolare se l'iscrizione degli importi dovuti allo Stato ne assicuri il totale ed immediato recupero e se e quando l'attività della società dovesse cessare. Pertanto la Commissione non è certa che la procedura fallimentare assicuri l'effettivo recupero degli importi di aiuto erogati abusivamente. |
| --- | --- |

(24)

Inoltre, l'Italia non ha trasmesso informazioni circa la procedura fallimentare applicata a Sandretto: in particolare se l'iscrizione degli importi dovuti allo Stato ne assicuri il totale ed immediato recupero e se e quando l'attività della società dovesse cessare. Pertanto la Commissione non è certa che la procedura fallimentare assicuri l'effettivo recupero degli importi di aiuto erogati abusivamente.

3.3.   Compatibilità con il mercato comune a titolo di aiuto per la ristrutturazione

| (25) | La Commissione deve valutare se esistano altri motivi per dichiarare la compatibilità con il mercato comune dell'aiuto per il salvataggio illegalmente prorogato. Conformemente al punto 20 degli orientamenti, gli aiuti a favore delle imprese in difficoltà possono essere unicamente considerati compatibili in base agli orientamenti stessi. La proroga dell'aiuto per il salvataggio può costituire un aiuto per la ristrutturazione compatibile qualora soddisfi le condizioni per l'autorizzazione stabilite ai punti 32-51 degli orientamenti. In particolare, l'autorizzazione di un aiuto per la ristrutturazione è subordinata all'attuazione di un piano di ristrutturazione realizzabile, credibile e solido da presentare alla Commissione per approvazione. |
| --- | --- |

(25)

La Commissione deve valutare se esistano altri motivi per dichiarare la compatibilità con il mercato comune dell'aiuto per il salvataggio illegalmente prorogato. Conformemente al punto 20 degli orientamenti, gli aiuti a favore delle imprese in difficoltà possono essere unicamente considerati compatibili in base agli orientamenti stessi. La proroga dell'aiuto per il salvataggio può costituire un aiuto per la ristrutturazione compatibile qualora soddisfi le condizioni per l'autorizzazione stabilite ai punti 32-51 degli orientamenti. In particolare, l'autorizzazione di un aiuto per la ristrutturazione è subordinata all'attuazione di un piano di ristrutturazione realizzabile, credibile e solido da presentare alla Commissione per approvazione.

| (26) | Poiché l'Italia non ha presentato tale piano di ristrutturazione, la Commissione in questa fase ritiene improbabile che la proroga dell'aiuto per il salvataggio possa essere considerata compatibile a titolo di aiuto per la ristrutturazione. |
| --- | --- |

(26)

Poiché l'Italia non ha presentato tale piano di ristrutturazione, la Commissione in questa fase ritiene improbabile che la proroga dell'aiuto per il salvataggio possa essere considerata compatibile a titolo di aiuto per la ristrutturazione.

IV.   CONCLUSIONE

| (27) | La Commissione non dispone di elementi attestanti che la società abbia cessato di beneficiare dell'aiuto per il salvataggio dopo il termine dei sei mesi. |
| --- | --- |

(27)

La Commissione non dispone di elementi attestanti che la società abbia cessato di beneficiare dell'aiuto per il salvataggio dopo il termine dei sei mesi.

| (28) | La Commissione ritiene peraltro che il considerevole lasso di tempo intercorso fra l'autorizzazione e la concessione dell'aiuto susciti dubbi riguardanti la necessità dell'aiuto e debba perciò essere giustificato da circostanze speciali del caso. In questa fase la Commissione dubita che sussistano siffatte circostanze speciali. |
| --- | --- |

(28)

La Commissione ritiene peraltro che il considerevole lasso di tempo intercorso fra l'autorizzazione e la concessione dell'aiuto susciti dubbi riguardanti la necessità dell'aiuto e debba perciò essere giustificato da circostanze speciali del caso. In questa fase la Commissione dubita che sussistano siffatte circostanze speciali.

| (29) | Inoltre, poiché le autorità italiane non hanno comunicato alcuna informazione sulla procedura fallimentare applicata a Sandretto, la Commissione dubita che la procedura fallimentare assicuri l'effettivo recupero degli importi di aiuto erogati abusivamente. |
| --- | --- |

(29)

Inoltre, poiché le autorità italiane non hanno comunicato alcuna informazione sulla procedura fallimentare applicata a Sandretto, la Commissione dubita che la procedura fallimentare assicuri l'effettivo recupero degli importi di aiuto erogati abusivamente.

| (30) | Infine, poiché l'Italia non ha presentato alcun piano di ristrutturazione, la Commissione in questa fase ritiene improbabile che la proroga dell'aiuto per il salvataggio possa essere considerata compatibile a titolo di aiuto per la ristrutturazione. |
| --- | --- |

(30)

Infine, poiché l'Italia non ha presentato alcun piano di ristrutturazione, la Commissione in questa fase ritiene improbabile che la proroga dell'aiuto per il salvataggio possa essere considerata compatibile a titolo di aiuto per la ristrutturazione.

V.   DECISIONE

| (31) | La Commissione in questa fase ritiene probabile che la proroga oltre il termine di sei mesi dell'aiuto per il salvataggio approvato a favore di Sandretto Industrie Srl sia illegale e nutre dubbi circa la compatibilità della misura con il mercato comune. La Commissione decide pertanto di avviare il procedimento di indagine formale ai sensi dell'articolo 88, paragrafo 2, del trattato CE e del regolamento (CE) n. 659/1999 del Consiglio (5). Ciò premesso, la Commissione, nell'ambito del procedimento di cui all'articolo 88, paragrafo 2, del trattato della CE, invita l'Italia a inviarle eventuali osservazioni e a fornirle qualsiasi informazione che possa essere utile ai fini della valutazione dell'aiuto entro il termine di un mese dalla data di ricezione della presente, in particolare le informazioni richieste dall'ingiunzione di fornire informazioni di cui al punto seguente. |
| --- | --- |

(31)

La Commissione in questa fase ritiene probabile che la proroga oltre il termine di sei mesi dell'aiuto per il salvataggio approvato a favore di Sandretto Industrie Srl sia illegale e nutre dubbi circa la compatibilità della misura con il mercato comune. La Commissione decide pertanto di avviare il procedimento di indagine formale ai sensi dell'articolo 88, paragrafo 2, del trattato CE e del regolamento (CE) n. 659/1999 del Consiglio (5). Ciò premesso, la Commissione, nell'ambito del procedimento di cui all'articolo 88, paragrafo 2, del trattato della CE, invita l'Italia a inviarle eventuali osservazioni e a fornirle qualsiasi informazione che possa essere utile ai fini della valutazione dell'aiuto entro il termine di un mese dalla data di ricezione della presente, in particolare le informazioni richieste dall'ingiunzione di fornire informazioni di cui al punto seguente.

| (32) | La Commissione, dato che le autorità italiane, nonostante un sollecito, hanno fornito risposte incomplete alla sua precedente richiesta di informazioni, ingiunge all'Italia ai sensi dell'articolo 10, paragrafo 3, del regolamento (CE) n. 659/1999 di:






  — | presentare la prova della cessazione della prima tranche della garanzia a seguito del rimborso del prestito, |
| --- | --- | --- |

(32)

La Commissione, dato che le autorità italiane, nonostante un sollecito, hanno fornito risposte incomplete alla sua precedente richiesta di informazioni, ingiunge all'Italia ai sensi dell'articolo 10, paragrafo 3, del regolamento (CE) n. 659/1999 di:

—

presentare la prova della cessazione della prima tranche della garanzia a seguito del rimborso del prestito,

| — | fornire informazioni dettagliate sulla seconda tranche della garanzia, in particolare se sia stata utilizzata, |
| --- | --- |

—

fornire informazioni dettagliate sulla seconda tranche della garanzia, in particolare se sia stata utilizzata,

| — | fornire informazioni dettagliate circa lo stato di avanzamento della procedura fallimentare applicata a Sandretto, in particolare se l'iscrizione degli importi dovuti allo Stato nell'ambito della procedura ne assicuri il pieno e immediato recupero, |
| --- | --- |

—

fornire informazioni dettagliate circa lo stato di avanzamento della procedura fallimentare applicata a Sandretto, in particolare se l'iscrizione degli importi dovuti allo Stato nell'ambito della procedura ne assicuri il pieno e immediato recupero,

| — | comunicare se l'impresa Sandretto continui a svolgere la sua attività, |
| --- | --- |

—

comunicare se l'impresa Sandretto continui a svolgere la sua attività,

| — | presentare un piano di liquidazione, ammesso che esista. |
| --- | --- |

—

presentare un piano di liquidazione, ammesso che esista.

La Commissione invita inoltre le autorità italiane a trasmettere senza indugio copia della presente lettera a Sandretto.

La Commissione richiama all'attenzione del governo italiano che l'articolo 88, paragrafo 3, del trattato CE ha effetto sospensivo e che in forza dell'articolo 14 del regolamento (CE) n. 659/1999, essa può imporre allo Stato membro di recuperare presso il beneficiario un aiuto illegalmente concesso.

La Commissione comunica all'Italia che informerà gli interessati attraverso la pubblicazione della presente lettera e di una sintesi della stessa nella Gazzetta ufficiale dell'Unione europea. L'autorità di sorveglianza EFTA sarà del pari informata tramite invio di copia della presente lettera. Le parti interessate saranno invitate a presentare osservazioni entro un mese dalla data di tale pubblicazione.’

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(1)  Caso N 802/06 (GU C 43 del 27.2.2007, pag. 2).

1

(2)  La Commissione comprende dalla legislazione italiana che “l'amministrazione straordinaria” è una procedura concorsuale applicata alle imprese in stato di insolvenza con l'obiettivo di mantenerne l'attività produttiva.

2

(3)  La Commissione comprende dalla legislazione italiana che la “procedura fallimentare” è una procedura concorsuale che ha l'obiettivo di soddisfare le richieste dei creditori attraverso la vendita dei beni dell'impresa, che conduce di solito alla liquidazione della società.

3

(4)  GU C 244 dell'1.10.2004, pag. 2.

4

(5)  GU L 83 del 27.3.1999, pag. 5.

5

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| 4.6.2008 | EN | Official Journal of the European Union | C 137/16 |
| --- | --- | --- | --- |

4.6.2008

EN

Official Journal of the European Union

C 137/16

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STATE AID — UNITED KINGDOM

State aid C 13/08 (ex N 589/07) — Aid to Channel 4 linked to digital switchover

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

(Text with EEA relevance)

(2008/C 137/10)

By means of the letter dated 2 April 2008 reproduced in the authentic language on the pages following this summary, the Commission notified the United Kingdom of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty concerning the proposed financial support to Channel 4 to enable it to meet the costs of digital switchover.

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:

| European Commission |
| --- |
| Directorate-General for Competition |
| State Aid Registry |
| SPA 3 6/5 |
| B-1049 Brussels |
| Fax (32-2) 296 12 42 |

European Commission

Directorate-General for Competition

State Aid Registry

SPA 3 6/5

B-1049 Brussels

Fax (32-2) 296 12 42

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

TEXT OF SUMMARY

PROCEDURE

The measures on which the Commission has opened the procedure laid down in Article 88(2) was brought to the Commission's attention initially by a complainant and later on by means of a formal notification by the United Kingdom authorities.

DESCRIPTION OF THE MEASURE

The notified measure deals with the notified aid by the UK authorities to provide GBP 14 million to Channel 4 to help it meet the capital costs of digital switchover.

Channel 4 is a broadcaster incorporated as a public corporation with no shareholders and entrusted with a public service remit. It is the core channel of Channel 4 Corporation (C4C) and is run on a commercial basis only (advertisement revenues being the main source of income). In 2006, the Commission received a complaint by a UK commercial broadcaster which objected to any kind of possible financial assistance towards Channel 4 on the grounds that C4C has ample and sufficient cash reserves to meet the costs of digital switchover without a need for public support.

The decision of the UK authorities to grant aid to Channel 4 follows an in-depth financial review of Channel 4 by Ofcom in 2007 and an expert report carried out for Ofcom by a consultancy (LEK).

The UK authorities accept that the notified measure constitutes an aid within the meaning of Article 87(1) of the Treaty. They argue however that the measure is compatible with the Treaty by virtue of Article 86(2), having regard to the Commission's Communication (1) on the application of the State aid rules in relation to public service broadcasting (‘the Communication’) and the three particular criteria according to which the compatibility of aid of this nature falls to be judged, namely, definition, entrustment and proportionality.

The complainant contest the need for financial support for Channel 4. It argues that Channel 4 has significant financial reserves and ample cash to pay for the costs of digital switchover. According to the complainant, although Channel 4 may in the future face a lower profitability, still its ability to deliver its public service remit will not be affected thereby, and therefore the aid is not necessary.

Assessment of the measure

According to the broadcasting communication, in the case of State support for public broadcasters, in order to determine whether there is overcompensation the Commission would need first to determine the gross costs of the public service remit, deduct the benefit of the commercial exploitation of the public service (e.g. advertising) so as to obtain the net public service cost. Moreover, the Commission has to ascertain that the broadcaster in question does not engage in unnecessary distortions of competition with regard to the commercial activities which are linked to the public service. If there is a net cost, then the said broadcaster should be entitled to obtain State aid.

The information provided so far by the UK does not enable the Commission to assess whether or not given its digital switchover obligations, C4 will have in the short term any net public service cost which would allow it to receive State aid.

TEXT OF LETTER

| ‘(1) | The Commission wishes to inform the United Kingdom that, having examined the information supplied by your authorities on the aid referred to above, it has decided to initiate the procedure laid down in Article 88(2) of the EC Treaty. |
| --- | --- |

‘(1)

The Commission wishes to inform the United Kingdom that, having examined the information supplied by your authorities on the aid referred to above, it has decided to initiate the procedure laid down in Article 88(2) of the EC Treaty.

I.   PROCEDURE

| (2) | On 2 August 2006, the Commission received a complaint (CP 186/06) by a UK-based television broadcaster against a possible funding support that the UK authorities were about to grant to Channel 4 to help it meet the costs of the digital switchover. |
| --- | --- |

(2)

On 2 August 2006, the Commission received a complaint (CP 186/06) by a UK-based television broadcaster against a possible funding support that the UK authorities were about to grant to Channel 4 to help it meet the costs of the digital switchover.

| (3) | On 10 October 2007, the UK authorities notified to the Commission their decision to grant an aid of GBP 14 million to Channel 4 to assist it to meet the capital costs of digital switchover. In the notification the UK authorities acknowledged that the notified measure constitutes an aid within the meaning of Article 87(1), and invited the Commission “to find that this aid is compatible with the EC Treaty by virtue of Article 86(2) EC, having regard (in particular) to the Commission's Communication (2) on the application of the State aid rules in relation to public service broadcasting (“the Communication”)”. |
| --- | --- |

(3)

On 10 October 2007, the UK authorities notified to the Commission their decision to grant an aid of GBP 14 million to Channel 4 to assist it to meet the capital costs of digital switchover. In the notification the UK authorities acknowledged that the notified measure constitutes an aid within the meaning of Article 87(1), and invited the Commission “to find that this aid is compatible with the EC Treaty by virtue of Article 86(2) EC, having regard (in particular) to the Commission's Communication (2) on the application of the State aid rules in relation to public service broadcasting (“the Communication”)”.

| (4) | On 23 November 2007, the Commission asked the UK authorities to provide further information and to clarify a number of aspects of the notification. On 22 January 2008, the UK authorities submitted their reply. |
| --- | --- |

(4)

On 23 November 2007, the Commission asked the UK authorities to provide further information and to clarify a number of aspects of the notification. On 22 January 2008, the UK authorities submitted their reply.

II.   DESCRIPTION

Background: Digital Switchover and Public Service Broadcasting in the UK: A Brief Overview

| (5) | The system of Public Service Broadcasting (“PSB”) in UK television has evolved over the course of more than 70 years and competition was introduced gradually into the system: Independent television (ITV) was launched in 1955, BBC Two went on air in 1964, Channel 4 came into being in 1982, and Channel 5 (later Five) was launched in 1997. |
| --- | --- |

(5)

The system of Public Service Broadcasting (“PSB”) in UK television has evolved over the course of more than 70 years and competition was introduced gradually into the system: Independent television (ITV) was launched in 1955, BBC Two went on air in 1964, Channel 4 came into being in 1982, and Channel 5 (later Five) was launched in 1997.

| (6) | Three appear to be the major sources of PSB in the UK:






  — | the BBC has historically been at the heart of the PSB system, with wide-ranging public service obligations. The corporation is exempt from commercial pressures, due to its licence fee funding, and as such has been able to maintain a broad portfolio of public service activities across television, radio and, more recently, new media, |
| --- | --- | --- |

(6)

Three appear to be the major sources of PSB in the UK:

—

the BBC has historically been at the heart of the PSB system, with wide-ranging public service obligations. The corporation is exempt from commercial pressures, due to its licence fee funding, and as such has been able to maintain a broad portfolio of public service activities across television, radio and, more recently, new media,

| — | Channel 4, although financed by advertising, has an embedded specific public service remit to be distinctive and to experiment, innovate, educate and reach culturally diverse audiences freed from some of the restrictions on other commercial broadcasters, notably shareholder returns and some programming quotas, |
| --- | --- |

—

Channel 4, although financed by advertising, has an embedded specific public service remit to be distinctive and to experiment, innovate, educate and reach culturally diverse audiences freed from some of the restrictions on other commercial broadcasters, notably shareholder returns and some programming quotas,

| — | commercial PSB broadcasters — ITV, Five and Teletext — also have specific programming obligations. The public service provision from the commercial players is delivered in return for privileged access to scarce analogue spectrum and the right to broadcast (3). |
| --- | --- |

—

commercial PSB broadcasters — ITV, Five and Teletext — also have specific programming obligations. The public service provision from the commercial players is delivered in return for privileged access to scarce analogue spectrum and the right to broadcast (3).

| (7) | In February 2005, Ofcom published the final report and conclusions of its statutory Review of Public Service Broadcasting (PSB) (4). Previous phases of the Review underlined why the framework for delivering PSB would need to change. In those phases, Ofcom highlighted amongst other that the existing terrestrial analogue model of commercially-funded PSB will not survive the transition to digital and may erode rapidly prior to 2012. |
| --- | --- |

(7)

In February 2005, Ofcom published the final report and conclusions of its statutory Review of Public Service Broadcasting (PSB) (4). Previous phases of the Review underlined why the framework for delivering PSB would need to change. In those phases, Ofcom highlighted amongst other that the existing terrestrial analogue model of commercially-funded PSB will not survive the transition to digital and may erode rapidly prior to 2012.

| (8) | Phase 3 of the PSB Review committed Ofcom to conduct a more detailed review of Channel 4's financial position in 2006/07. The PSB Review identified that changes in the market are threatening the established PSB system, in the sense that the move from analogue to digital, and consequently multichannel, television may mean it is no longer realistic to expect commercial broadcasters to deliver significant PSB obligations due to their fragmenting audience base. In particular, a key issue of the review concerned the future viability of and operating model for Channel 4. |
| --- | --- |

(8)

Phase 3 of the PSB Review committed Ofcom to conduct a more detailed review of Channel 4's financial position in 2006/07. The PSB Review identified that changes in the market are threatening the established PSB system, in the sense that the move from analogue to digital, and consequently multichannel, television may mean it is no longer realistic to expect commercial broadcasters to deliver significant PSB obligations due to their fragmenting audience base. In particular, a key issue of the review concerned the future viability of and operating model for Channel 4.

Channel 4

| (9) | C4 Television Corporation (C4C) is an operator providing public service broadcasting whose principal function is to provide the public service television channel called “Channel 4”. It is incorporated as a not for profit public corporation but run on a commercial basis. C4C receives no direct financial support from the State and all of its income is derived from its channels, such as by the sale of advertising and the commercial sponsorship of programmes, and from other commercial activities connected with its channels, such as the sale of books and DVDs. |
| --- | --- |

(9)

C4 Television Corporation (C4C) is an operator providing public service broadcasting whose principal function is to provide the public service television channel called “Channel 4”. It is incorporated as a not for profit public corporation but run on a commercial basis. C4C receives no direct financial support from the State and all of its income is derived from its channels, such as by the sale of advertising and the commercial sponsorship of programmes, and from other commercial activities connected with its channels, such as the sale of books and DVDs.

| (10) | Channels 4's public service programming remit is defined in Section 265(3) of the Communications Act 2003:
  “The public service remit for Channel 4 is the provision of a broad range of high quality and diverse programming which, in particular:






  (a) | demonstrates innovation, experiment and creativity in the form and content of programmes; |
| --- | --- | --- |

(10)

Channels 4's public service programming remit is defined in Section 265(3) of the Communications Act 2003:

“The public service remit for Channel 4 is the provision of a broad range of high quality and diverse programming which, in particular:

(a)

demonstrates innovation, experiment and creativity in the form and content of programmes;

| (b) | appeals to the tastes and interests of a culturally diverse society; |
| --- | --- |

(b)

appeals to the tastes and interests of a culturally diverse society;

| (c) | makes a significant contribution to meeting the need for the licensed public service channels to include programmes of an educational nature and other programmes of educative value; and |
| --- | --- |

(c)

makes a significant contribution to meeting the need for the licensed public service channels to include programmes of an educational nature and other programmes of educative value; and

| (d) | exhibits a distinctive character”. |
| --- | --- |

(d)

exhibits a distinctive character”.

| (11) | C4C's statutory powers permit it to engage in activities apart from the provision of Channel 4 itself. On this basis, C4C has launched a series of other channels: two general entertainment channels called “E4” and “More4”, a film channel called “Film4”, and “C4 + 1”, which runs Channel 4's schedules an hour later than the channel itself (5). These channels are not public service channels under current legislation, and do not have public service remits. |
| --- | --- |

(11)

C4C's statutory powers permit it to engage in activities apart from the provision of Channel 4 itself. On this basis, C4C has launched a series of other channels: two general entertainment channels called “E4” and “More4”, a film channel called “Film4”, and “C4 + 1”, which runs Channel 4's schedules an hour later than the channel itself (5). These channels are not public service channels under current legislation, and do not have public service remits.

| (12) | C4C is not permitted to engage in any commercial activity only for financial reasons: Section 199(1) of the 2003 Act provides that “the activities that C4C are able to carry on include any activities which appear to them”:






  (a) | to be activities that it is appropriate for them to carry on in association with the carrying out of their primary functions; and |
| --- | --- | --- |

(12)

C4C is not permitted to engage in any commercial activity only for financial reasons: Section 199(1) of the 2003 Act provides that “the activities that C4C are able to carry on include any activities which appear to them”:

(a)

to be activities that it is appropriate for them to carry on in association with the carrying out of their primary functions; and

| (b) | to be connected, otherwise than merely in financial terms, with activities undertaken by them for the carrying out of those functions. |
| --- | --- |

(b)

to be connected, otherwise than merely in financial terms, with activities undertaken by them for the carrying out of those functions.

| (13) | Section 199(2) of the 2003 Act defines the “primary functions” of C4C as securing the continued provision of Channel 4, and the fulfilment of that channel's public service remit. Schedule 9 to the Act makes detailed provision as to the regulation of C4C's commercial activities by Ofcom who must approve arrangements prepared by C4C concerning the management of those activities, and those arrangements must (in particular) address any risks those activities could pose to the fulfilment of the primary functions, and financial transparency as between the primary functions and other activities. |
| --- | --- |

(13)

Section 199(2) of the 2003 Act defines the “primary functions” of C4C as securing the continued provision of Channel 4, and the fulfilment of that channel's public service remit. Schedule 9 to the Act makes detailed provision as to the regulation of C4C's commercial activities by Ofcom who must approve arrangements prepared by C4C concerning the management of those activities, and those arrangements must (in particular) address any risks those activities could pose to the fulfilment of the primary functions, and financial transparency as between the primary functions and other activities.

The funding of C4C

| (14) | As stated above, C4C is run on a commercial basis only and does not receive any State funding. C4C financial results for 2006 showed post-tax profits of GBP 14,5 million on a turnover of GBP 937 million, compared with GBP 48,5 million post-tax profits on a turnover of GBP 894 million in 2005 (6). |
| --- | --- |

(14)

As stated above, C4C is run on a commercial basis only and does not receive any State funding. C4C financial results for 2006 showed post-tax profits of GBP 14,5 million on a turnover of GBP 937 million, compared with GBP 48,5 million post-tax profits on a turnover of GBP 894 million in 2005 (6).

| (15) | In the past, in order to ensure that Channel 4 can continue to provide public service broadcasting, the UK Government introduced a “safety net” in the form of a financial support that would be funded by a levy on the Channel 3 licence holders (that is, ITV) if Channel 4's advertising revenue proved insufficient. The commercial success of Channel 4 was such that the system never needed to be activated, and was repealed in 2003. |
| --- | --- |

(15)

In the past, in order to ensure that Channel 4 can continue to provide public service broadcasting, the UK Government introduced a “safety net” in the form of a financial support that would be funded by a levy on the Channel 3 licence holders (that is, ITV) if Channel 4's advertising revenue proved insufficient. The commercial success of Channel 4 was such that the system never needed to be activated, and was repealed in 2003.

C4C and digital switchover

| (16) | Channel 4 operates under a licence granted to C4C by Ofcom. New licences were granted to ITV, Channel 4 and Five by Ofcom in December 2004, and in common with the other new licences, the Channel 4 licence requires C4C to provide the service in digital form, and to deliver that service by digital terrestrial television so as to secure coverage that is equivalent to, or substantially the same as, that currently achieved by the analogue service. According to those licences, switchover must be completed by 31 December 2012. C4C was obliged to accept the new licence whereas the legislation gave ITV and Five the opportunity to refuse the new licences. |
| --- | --- |

(16)

Channel 4 operates under a licence granted to C4C by Ofcom. New licences were granted to ITV, Channel 4 and Five by Ofcom in December 2004, and in common with the other new licences, the Channel 4 licence requires C4C to provide the service in digital form, and to deliver that service by digital terrestrial television so as to secure coverage that is equivalent to, or substantially the same as, that currently achieved by the analogue service. According to those licences, switchover must be completed by 31 December 2012. C4C was obliged to accept the new licence whereas the legislation gave ITV and Five the opportunity to refuse the new licences.

| (17) | As part of the UK Government's switchover policy, all the operators of the PSB multiplexes will need to extend their transmission network from the current 80 digital transmitters to the 1 154 transmitters currently used for analogue transmissions. |
| --- | --- |

(17)

As part of the UK Government's switchover policy, all the operators of the PSB multiplexes will need to extend their transmission network from the current 80 digital transmitters to the 1 154 transmitters currently used for analogue transmissions.

| (18) | Channel 4, in digital form, is currently delivered on the Digital 3 & 4 multiplex (as well as on cable, satellite and DSL). That multiplex carries the national and regional ITV channels, Channel 4 and the free to view, commercial channels E4, More4 and C4 + 1 (all 100 % owned by and provided by the C4C). The licence for this multiplex is held by Digital 3 & 4 a company which is owned in equal shares by the ITV companies and C4C. 48,5 % of the capacity is reserved for ITV, 48,5 % for C4C, and 3 % for the digital version of the public Teletext service. |
| --- | --- |

(18)

Channel 4, in digital form, is currently delivered on the Digital 3 & 4 multiplex (as well as on cable, satellite and DSL). That multiplex carries the national and regional ITV channels, Channel 4 and the free to view, commercial channels E4, More4 and C4 + 1 (all 100 % owned by and provided by the C4C). The licence for this multiplex is held by Digital 3 & 4 a company which is owned in equal shares by the ITV companies and C4C. 48,5 % of the capacity is reserved for ITV, 48,5 % for C4C, and 3 % for the digital version of the public Teletext service.

| (19) | C4C pays carriage charges to Digital 3 & 4 — the multiplex licence holder and operator. They are charged at cost, and charges are apportioned between the two main users of the multiplex in proportion to the capacity reserved for them. Thus, C4C and ITV each pays 48,5 % of the multiplex's costs (7). |
| --- | --- |

(19)

C4C pays carriage charges to Digital 3 & 4 — the multiplex licence holder and operator. They are charged at cost, and charges are apportioned between the two main users of the multiplex in proportion to the capacity reserved for them. Thus, C4C and ITV each pays 48,5 % of the multiplex's costs (7).

| (20) | In turn, the multiplex operator must negotiate with the owners of transmitting masts and sites and the providers of “managed transmission services” to secure the physical transmission of the services carried on the multiplex. Negotiations for new digital terrestrial transmission contracts were concluded in August 2007. The masts and sites owners actually will incur the capital expenditure needed to build the transmission network in order to meet the coverage obligation in the new licences. They will recover those costs from the multiplex operator over the life of the transmission contract, and the multiplex operator will in turn pass those costs on to the broadcasters seeking carriage. |
| --- | --- |

(20)

In turn, the multiplex operator must negotiate with the owners of transmitting masts and sites and the providers of “managed transmission services” to secure the physical transmission of the services carried on the multiplex. Negotiations for new digital terrestrial transmission contracts were concluded in August 2007. The masts and sites owners actually will incur the capital expenditure needed to build the transmission network in order to meet the coverage obligation in the new licences. They will recover those costs from the multiplex operator over the life of the transmission contract, and the multiplex operator will in turn pass those costs on to the broadcasters seeking carriage.

| (21) | In its notification the UK authorities have estimated that C4C's share (48,5 % of the total) of the costs of building out and running the Digital 3 & 4 multiplex to the extent required to meet the coverage obligation in the new licence will be in the region of GBP [...] (8) million through to the end of 2034. The elements of the capital costs of the project relevant to C4C are likely to be in the range GBP [...] million to GBP [...] million over the build-out period. Digital 3&4 has structured this into a 26 year management contract to manage the impact on their annual cash flows. The front-end of the management contract overlaps with the BBC's current licence fee period from 2008-2013. The amount payable by C4C over the latter period is GBP 14 million, of which GBP 7 million relates to the repayment of principal and the remainder to the cost of financing the capital over that period. |
| --- | --- |

(21)

In its notification the UK authorities have estimated that C4C's share (48,5 % of the total) of the costs of building out and running the Digital 3 & 4 multiplex to the extent required to meet the coverage obligation in the new licence will be in the region of GBP [...] (8) million through to the end of 2034. The elements of the capital costs of the project relevant to C4C are likely to be in the range GBP [...] million to GBP [...] million over the build-out period. Digital 3&4 has structured this into a 26 year management contract to manage the impact on their annual cash flows. The front-end of the management contract overlaps with the BBC's current licence fee period from 2008-2013. The amount payable by C4C over the latter period is GBP 14 million, of which GBP 7 million relates to the repayment of principal and the remainder to the cost of financing the capital over that period.

| (22) | To date, take-up of digital platforms is growing very rapidly in the UK. This has been driven both by rapid growth in digital terrestrial television (the Freeview platform), and continued growth by Sky (Satellite). Partly due to this rapid penetration of multichannel television, existing analogue channels as a whole have also lost share on every platform, due to increased competition from digital-only channels (although many of the more successful channel launches have been by the existing analogue channels themselves). Although analogue channels including the BBC and ITV have experienced over the last year a declining audience share, digital only channels have benefited from (and helped to cause) the main terrestrial broadcasters' declining audience share. In its “Issue Paper” of July 2006, Ofcom noted that the digital channels launched by the existing terrestrial broadcasters have actually performed better and have compensated in part for the decline in the flagship PSB (9). |
| --- | --- |

(22)

To date, take-up of digital platforms is growing very rapidly in the UK. This has been driven both by rapid growth in digital terrestrial television (the Freeview platform), and continued growth by Sky (Satellite). Partly due to this rapid penetration of multichannel television, existing analogue channels as a whole have also lost share on every platform, due to increased competition from digital-only channels (although many of the more successful channel launches have been by the existing analogue channels themselves). Although analogue channels including the BBC and ITV have experienced over the last year a declining audience share, digital only channels have benefited from (and helped to cause) the main terrestrial broadcasters' declining audience share. In its “Issue Paper” of July 2006, Ofcom noted that the digital channels launched by the existing terrestrial broadcasters have actually performed better and have compensated in part for the decline in the flagship PSB (9).

Main features of the aid

| (23) | The UK government has announced that it will grant C4C GBP 14 million to enable it to meet the costs of digital switchover. The main features of the notified aid can be described as follows. |
| --- | --- |

(23)

The UK government has announced that it will grant C4C GBP 14 million to enable it to meet the costs of digital switchover. The main features of the notified aid can be described as follows.

| (24) | The aid will be calculated according to the actual costs to C4C of the capital expenditure (not running costs) incurred in converting the DTT transmission network to a fully digital operation. Negotiations between Digital 3 & 4 and its preferred transmission provider (Arquiva) were jointly conducted by ITV and C4C in order to reach the most advantageous deal with its broadcast transmission service provider. The actual costs of converting the network will be known by the time the aid becomes payable. |
| --- | --- |

(24)

The aid will be calculated according to the actual costs to C4C of the capital expenditure (not running costs) incurred in converting the DTT transmission network to a fully digital operation. Negotiations between Digital 3 & 4 and its preferred transmission provider (Arquiva) were jointly conducted by ITV and C4C in order to reach the most advantageous deal with its broadcast transmission service provider. The actual costs of converting the network will be known by the time the aid becomes payable.

| (25) | The aid will be funded out of the proceeds of the TV licence fee (levied on every household that uses a television to receive broadcast services) and administered and disbursed by the BBC. The level of the licence fee, and hence the level of income to the BBC, has been set in a manner that takes account of the BBC's possible liability to pay aid to C4C. |
| --- | --- |

(25)

The aid will be funded out of the proceeds of the TV licence fee (levied on every household that uses a television to receive broadcast services) and administered and disbursed by the BBC. The level of the licence fee, and hence the level of income to the BBC, has been set in a manner that takes account of the BBC's possible liability to pay aid to C4C.

| (26) | There will be a mechanism to ensure that the BBC is not over-compensated. The BBC will receive no more from licence fee proceeds than it is liable to disburse in aid to C4C or in meeting the reasonable administrative costs of the scheme proposed measure. In that sense, BBC is not in any way whatsoever the recipient or beneficiary of the aid, simply the administrator of the aid mechanism granted by the UK authorities to C4C. |
| --- | --- |

(26)

There will be a mechanism to ensure that the BBC is not over-compensated. The BBC will receive no more from licence fee proceeds than it is liable to disburse in aid to C4C or in meeting the reasonable administrative costs of the scheme proposed measure. In that sense, BBC is not in any way whatsoever the recipient or beneficiary of the aid, simply the administrator of the aid mechanism granted by the UK authorities to C4C.

III.   CHANNEL 4 FINANCIAL REVIEW BY OFCOM (JUNE 2007): THE LEK STUDY

| (27) | During the PSB Review in 2006, Ofcom found no strong evidence of a short term funding gap at the time of the review for Channel 4 which could threaten the delivery of its remit but stated that there would be a need to revisit the issue. In 2007, Ofcom carried out the Financial Review of Channel 4 to assess the Channel 4 Group's financial viability in delivering its PSB remit by looking into the historic and current financial position of Channel 4 and the likely resilience of its funding model in the face of changing competitive pressures. To that end, Ofcom asked LEK, a financial consultancy, to undertake, on its behalf, a detailed review of Channel 4 Group's financial statements, business plans and management accounts for the past five years, and of its future performance projections. In parallel to the LEK's report, Ofcom examined the delivery of Channel 4's public service remit, mainly how Channel 4 defines and implements its remit. |
| --- | --- |

(27)

During the PSB Review in 2006, Ofcom found no strong evidence of a short term funding gap at the time of the review for Channel 4 which could threaten the delivery of its remit but stated that there would be a need to revisit the issue. In 2007, Ofcom carried out the Financial Review of Channel 4 to assess the Channel 4 Group's financial viability in delivering its PSB remit by looking into the historic and current financial position of Channel 4 and the likely resilience of its funding model in the face of changing competitive pressures. To that end, Ofcom asked LEK, a financial consultancy, to undertake, on its behalf, a detailed review of Channel 4 Group's financial statements, business plans and management accounts for the past five years, and of its future performance projections. In parallel to the LEK's report, Ofcom examined the delivery of Channel 4's public service remit, mainly how Channel 4 defines and implements its remit.

| (28) | In short, LEK found that “there is likely to be a slow deterioration in the Group's surplus” to 2008 (10), but noted that since Channel 4 has “substantial” cash reserves, there would be “no immediate, pressing risk to Channel 4” (10). Even taking into account significant variations between their “low”, “high” and “central” scenarios, LEK identified “no significant risk of intractable financial challenges emerging before 2010” (11), and “little evidence to suggest that Channel 4's remit delivery would need to be fundamentally compromised before 2010” (12). |
| --- | --- |

(28)

In short, LEK found that “there is likely to be a slow deterioration in the Group's surplus” to 2008 (10), but noted that since Channel 4 has “substantial” cash reserves, there would be “no immediate, pressing risk to Channel 4” (10). Even taking into account significant variations between their “low”, “high” and “central” scenarios, LEK identified “no significant risk of intractable financial challenges emerging before 2010” (11), and “little evidence to suggest that Channel 4's remit delivery would need to be fundamentally compromised before 2010” (12).

| (29) | LEK, however, concluded that “it is likely that the Group will cease to be profitable around 2010, and will become increasingly unprofitable thereafter ... LEK's assessment is that Channel 4's funding model is likely, in the medium term, to become unsustainable”. The Group's other channels are expected to move into profit in 2007 but LEK did not expect returns from this source to be sufficient to offset losses on the core channel (13). |
| --- | --- |

(29)

LEK, however, concluded that “it is likely that the Group will cease to be profitable around 2010, and will become increasingly unprofitable thereafter ... LEK's assessment is that Channel 4's funding model is likely, in the medium term, to become unsustainable”. The Group's other channels are expected to move into profit in 2007 but LEK did not expect returns from this source to be sufficient to offset losses on the core channel (13).

| (30) | LEK identified the following as the key trends driving the C4C future performance (i) flat or declining advertising revenues; (ii) higher prices for acquired programming and competition for its original productions; (iii) cost inflation; and (iv) a more pessimistic view of the likely profitability of the Group's ancillary businesses than the group itself takes. |
| --- | --- |

(30)

LEK identified the following as the key trends driving the C4C future performance (i) flat or declining advertising revenues; (ii) higher prices for acquired programming and competition for its original productions; (iii) cost inflation; and (iv) a more pessimistic view of the likely profitability of the Group's ancillary businesses than the group itself takes.

| (31) | In the light of this analysis, Ofcom took the view that the current and future market pressures on Channel 4 “could have a gradual, but cumulatively serious, impact on Channel 4's delivery of its remit” (14). For Ofcom, there is a wider issue of how to measure and enhance the monitoring of Channel 4's PSB output (15). |
| --- | --- |

(31)

In the light of this analysis, Ofcom took the view that the current and future market pressures on Channel 4 “could have a gradual, but cumulatively serious, impact on Channel 4's delivery of its remit” (14). For Ofcom, there is a wider issue of how to measure and enhance the monitoring of Channel 4's PSB output (15).

| (32) | Ofcom considered that there is a need to be open to looking at fundamental reform of Channel 4's financial model in the long term (16). Contrary to LEK's figures which suggested that there is time to monitor performance further before intervening, Ofcom considered that it might take time to identify and implement a long-term intervention and that accordingly there is a case for the UK government to look at short-term, transitional measures which:






  — | they would provide support during the transitional period between now and 2011-2012, |
| --- | --- | --- |

(32)

Ofcom considered that there is a need to be open to looking at fundamental reform of Channel 4's financial model in the long term (16). Contrary to LEK's figures which suggested that there is time to monitor performance further before intervening, Ofcom considered that it might take time to identify and implement a long-term intervention and that accordingly there is a case for the UK government to look at short-term, transitional measures which:

—

they would provide support during the transitional period between now and 2011-2012,

| — | they would be quantifiable and hence provide the Group with greater certainty, |
| --- | --- |

—

they would be quantifiable and hence provide the Group with greater certainty,

| — | the Group would be able to demonstrate how these measures would help delivery of Channel 4's remit, |
| --- | --- |

—

the Group would be able to demonstrate how these measures would help delivery of Channel 4's remit,

| — | they would not have long-term effects or implications for longer-term policy (17). |
| --- | --- |

—

they would not have long-term effects or implications for longer-term policy (17).

| (33) | Although Ofcom expressed no opinion on the notified aid, the UK authorities consider that the notified aid meets Ofcom's above listed criteria. |
| --- | --- |

(33)

Although Ofcom expressed no opinion on the notified aid, the UK authorities consider that the notified aid meets Ofcom's above listed criteria.

IV.   COMMENTS FROM THE PARTIES INVOLVED

The UK position: the justification for the aid

| (34) | The UK authorities argue that the aid to C4C is justified for two main reasons. First, as a public corporation with no shareholders, C4C has no access to the capital markets; and second, any calls on its resources would mean that there is less money available for other aspects of the business, including public service programming, since the reserves accumulated from previous years are finite and partly required to fund the working capital requirements of the business (18). |
| --- | --- |

(34)

The UK authorities argue that the aid to C4C is justified for two main reasons. First, as a public corporation with no shareholders, C4C has no access to the capital markets; and second, any calls on its resources would mean that there is less money available for other aspects of the business, including public service programming, since the reserves accumulated from previous years are finite and partly required to fund the working capital requirements of the business (18).

| (35) | In cash terms, in 2007 C4C will have spent GBP 636 million on programming for Channel 4 and its other non-PSB digital channels. At the same time, the UK expects that income from Channel 4 over the same period is likely to fall, as a result (in particular) of the fact that, in a fully digital environment, Channel 4's audience share will drop, with a corresponding effect on advertising revenue. In particular the UK has produced data showing that Channel 4's share of viewing is highest in an analogue terrestrial home (14,5 %) with access to only five channels, and lowest in a cable or satellite home having hundreds of channels available (6,7 %). Digital switchover would mean that the number of analogue terrestrial homes — where Channel 4 performs best — will eventually fall to zero as the remaining homes in the UK without digital television are required to opt for one or the other of the multi-channel platforms. |
| --- | --- |

(35)

In cash terms, in 2007 C4C will have spent GBP 636 million on programming for Channel 4 and its other non-PSB digital channels. At the same time, the UK expects that income from Channel 4 over the same period is likely to fall, as a result (in particular) of the fact that, in a fully digital environment, Channel 4's audience share will drop, with a corresponding effect on advertising revenue. In particular the UK has produced data showing that Channel 4's share of viewing is highest in an analogue terrestrial home (14,5 %) with access to only five channels, and lowest in a cable or satellite home having hundreds of channels available (6,7 %). Digital switchover would mean that the number of analogue terrestrial homes — where Channel 4 performs best — will eventually fall to zero as the remaining homes in the UK without digital television are required to opt for one or the other of the multi-channel platforms.

| (36) | The UK authorities add that while its audience is bound to decline with the advent of the DTT and the multichannel home environment, C4C must still assume the costs of simulcasting in analogue and digital mode until switchover is complete. |
| --- | --- |

(36)

The UK authorities add that while its audience is bound to decline with the advent of the DTT and the multichannel home environment, C4C must still assume the costs of simulcasting in analogue and digital mode until switchover is complete.

| (37) | Accordingly, the UK authorities argue that the negative effect of switchover on C4C's financial position is significant. Although the proposed GBP 14 million aid is relatively small when compared to Channel 4's total programming expenditure, the aid will have a significant impact on the ability of C4C to continue to deliver its public service remit. As a commercial broadcaster, C4C's funding model involves an implicit cross-subsidy whereby its most profitable programming generates commercial surpluses to finance loss-making programming, particularly in traditional PSB genres such as News and Current Affairs, characterised by high costs and limited revenue potential. Without the aid, C4C may be forced to divert expenditure away from certain genres which deliver significant public value in order to focus on more commercial programming. In other words, without the aid, the costs of digital switchover will have a direct impact on the resources available to C4C to meet its public service remit. Moreover, since the obligations of digital switchover and the associated costs are essentially attributable to the Government's switchover policy, the UK authorities consider it appropriate for there to be a contribution to those costs from public resources. |
| --- | --- |

(37)

Accordingly, the UK authorities argue that the negative effect of switchover on C4C's financial position is significant. Although the proposed GBP 14 million aid is relatively small when compared to Channel 4's total programming expenditure, the aid will have a significant impact on the ability of C4C to continue to deliver its public service remit. As a commercial broadcaster, C4C's funding model involves an implicit cross-subsidy whereby its most profitable programming generates commercial surpluses to finance loss-making programming, particularly in traditional PSB genres such as News and Current Affairs, characterised by high costs and limited revenue potential. Without the aid, C4C may be forced to divert expenditure away from certain genres which deliver significant public value in order to focus on more commercial programming. In other words, without the aid, the costs of digital switchover will have a direct impact on the resources available to C4C to meet its public service remit. Moreover, since the obligations of digital switchover and the associated costs are essentially attributable to the Government's switchover policy, the UK authorities consider it appropriate for there to be a contribution to those costs from public resources.

| (38) | Thus, the UK authorities believe that it is appropriate to remove one of the pressures being faced by C4C, by granting State aid to give C4C assistance with meeting the capital costs involved in converting to a digital transmission the network that carries Channel 4. |
| --- | --- |

(38)

Thus, the UK authorities believe that it is appropriate to remove one of the pressures being faced by C4C, by granting State aid to give C4C assistance with meeting the capital costs involved in converting to a digital transmission the network that carries Channel 4.

Aid compatible with the Treaty

| (39) | The UK authorities accept that the notified measure constitutes aid within the meaning of Article 87(1). It argues however that the measure is compatible with the Treaty by virtue of Article 86(2) EC, having regard to the Commission's Communication (19) on the application of the State aid rules in relation to public service broadcasting (“the Communication”) and the three particular criteria according to which the compatibility of aid of this nature falls to be judged, namely, definition, entrustment and proportionality. |
| --- | --- |

(39)

The UK authorities accept that the notified measure constitutes aid within the meaning of Article 87(1). It argues however that the measure is compatible with the Treaty by virtue of Article 86(2) EC, having regard to the Commission's Communication (19) on the application of the State aid rules in relation to public service broadcasting (“the Communication”) and the three particular criteria according to which the compatibility of aid of this nature falls to be judged, namely, definition, entrustment and proportionality.

| (40) | In particular, Sections 231, 264 and 265(3) of the Communications Act 2003, taken with the new licence, satisfy the “definition” criterion. Sections 23 and 24(3) of the Broadcasting Act 1990 and Section 265(3) of the 2003 Act, along with the licence, will further satisfy the “entrustment” requirement (20). |
| --- | --- |

(40)

In particular, Sections 231, 264 and 265(3) of the Communications Act 2003, taken with the new licence, satisfy the “definition” criterion. Sections 23 and 24(3) of the Broadcasting Act 1990 and Section 265(3) of the 2003 Act, along with the licence, will further satisfy the “entrustment” requirement (20).

| (41) | With regard to the criterion of “proportionality” the UK authorities consider that the sums paid in support of Channel 4 will not exceed the capital costs of providing near-universal coverage as a public service, and that any market distortions implicit in the funding could not be avoided or reduced by adopting another means of delivering or funding the remit. They argue that the aid will correspond to the capital costs of converting the transmission network to digital broadcasting by analysing the charges paid by C4C to the multiplex operator for the transmission of its services. The UK authorities clarify that the costs to expand the multiplex are fixed regardless of any other channels that may be carried alongside Channel 4. Likewise any income or other economic advantage (higher advertising revenues from a larger audience) will need to be deducted from the amount of the aid. Although in the long term C4C will no longer have to incur any simulcast costs, which will help to reduce the overall cost of C4C, the UK authorities consider that the if C4C is entitled to an aid for the capital costs of digital conversion, it is also entitled to any consequential benefits that may result thereof. |
| --- | --- |

(41)

With regard to the criterion of “proportionality” the UK authorities consider that the sums paid in support of Channel 4 will not exceed the capital costs of providing near-universal coverage as a public service, and that any market distortions implicit in the funding could not be avoided or reduced by adopting another means of delivering or funding the remit. They argue that the aid will correspond to the capital costs of converting the transmission network to digital broadcasting by analysing the charges paid by C4C to the multiplex operator for the transmission of its services. The UK authorities clarify that the costs to expand the multiplex are fixed regardless of any other channels that may be carried alongside Channel 4. Likewise any income or other economic advantage (higher advertising revenues from a larger audience) will need to be deducted from the amount of the aid. Although in the long term C4C will no longer have to incur any simulcast costs, which will help to reduce the overall cost of C4C, the UK authorities consider that the if C4C is entitled to an aid for the capital costs of digital conversion, it is also entitled to any consequential benefits that may result thereof.

| (42) | The UK authorities acknowledge that C4C has built substantial cash reserves through time (up to GBP 170 million). They argue however that a significant portion of those reserves is required to manage C4C's working capital requirements (an average of GBP 75 million per month). Its average capital balance for 2007 stood at GBP 137 million. The UK argues that contrary to allegations by others, C4C need to keep these reserves to protect against revenue variations and to make further investments in new business activities that could offset the expected decline of the core PSB channel. |
| --- | --- |

(42)

The UK authorities acknowledge that C4C has built substantial cash reserves through time (up to GBP 170 million). They argue however that a significant portion of those reserves is required to manage C4C's working capital requirements (an average of GBP 75 million per month). Its average capital balance for 2007 stood at GBP 137 million. The UK argues that contrary to allegations by others, C4C need to keep these reserves to protect against revenue variations and to make further investments in new business activities that could offset the expected decline of the core PSB channel.

| (43) | Finally, the aid will not allow C4C to distort competition in the advertisement market, given that the advertisement market does not operate on the basis of discounted rates, but on the basis of annual purchases of airtime that deliver a number of “impacts” to the advertiser. |
| --- | --- |

(43)

Finally, the aid will not allow C4C to distort competition in the advertisement market, given that the advertisement market does not operate on the basis of discounted rates, but on the basis of annual purchases of airtime that deliver a number of “impacts” to the advertiser.

| (44) | In their reply to a request for further information, the UK authorities further clarified that the aid to C4C is indented to address not only the capital costs of switchover but also the broader impact that switchover will have on C4C medium-to-long term financial performance. |
| --- | --- |

(44)

In their reply to a request for further information, the UK authorities further clarified that the aid to C4C is indented to address not only the capital costs of switchover but also the broader impact that switchover will have on C4C medium-to-long term financial performance.

The complainant's position

| (45) | Although supportive of the PSB system and the State's intervention to maintain and sustain a high level of PSB, the complainant considers that the proposed aid to Channel 4 is not justified. Channel 4 has accumulated reserves of around GBP 150 million through its commercial operations and is thus in a position to face up to the expected short term challenges identified by the LEK report and the Ofcom review. |
| --- | --- |

(45)

Although supportive of the PSB system and the State's intervention to maintain and sustain a high level of PSB, the complainant considers that the proposed aid to Channel 4 is not justified. Channel 4 has accumulated reserves of around GBP 150 million through its commercial operations and is thus in a position to face up to the expected short term challenges identified by the LEK report and the Ofcom review.

| (46) | The complainant considers that the question whether in the longer term the funding mechanism of Channel 4 should be reviewed in detail to take into account the changes in the broadcasting market post digital switchover is a wholly separate issue, one which is currently under review by Ofcom. The aid should not therefore be used to address the longer term issues facing Channel 4 under the disguise of a support mechanism for the capital costs of digital switchover. |
| --- | --- |

(46)

The complainant considers that the question whether in the longer term the funding mechanism of Channel 4 should be reviewed in detail to take into account the changes in the broadcasting market post digital switchover is a wholly separate issue, one which is currently under review by Ofcom. The aid should not therefore be used to address the longer term issues facing Channel 4 under the disguise of a support mechanism for the capital costs of digital switchover.

| (47) | More importantly, the complainant argues that the current decision-making process has been opaque given that there has not yet been any kind of assessment of the costs for Channel 4 to deliver its PSB remit. As a result, there is no correlation between the GBP 14 million aid pledged for Channel 4 and the alleged threat that digital switchover will have on the delivery of its PSB remit. |
| --- | --- |

(47)

More importantly, the complainant argues that the current decision-making process has been opaque given that there has not yet been any kind of assessment of the costs for Channel 4 to deliver its PSB remit. As a result, there is no correlation between the GBP 14 million aid pledged for Channel 4 and the alleged threat that digital switchover will have on the delivery of its PSB remit.

| (48) | The complainant stresses that during the period 1999-2005, all the non-PSB commercial activities of Channel 4 made cumulative losses of GBP 200 million which were offset by the profits made by the core Channel 4. The complainant argues that the aid will allow C4C to continue subsidising its non PSB commercial channels distorting competition in the market. For the complainant, C4C would be better off in the coming years sub-leasing the free DTT spectrum in has received for its other non-PSB channels and reinvest the money to support the core PSB channel. The complainant estimates that subleasing the “free” spectrum used by the 3 commercial channels between 2007-2012, C4C would have between GBP 52 and GBP 116 million more than if it continued to provide its digital channels. |
| --- | --- |

(48)

The complainant stresses that during the period 1999-2005, all the non-PSB commercial activities of Channel 4 made cumulative losses of GBP 200 million which were offset by the profits made by the core Channel 4. The complainant argues that the aid will allow C4C to continue subsidising its non PSB commercial channels distorting competition in the market. For the complainant, C4C would be better off in the coming years sub-leasing the free DTT spectrum in has received for its other non-PSB channels and reinvest the money to support the core PSB channel. The complainant estimates that subleasing the “free” spectrum used by the 3 commercial channels between 2007-2012, C4C would have between GBP 52 and GBP 116 million more than if it continued to provide its digital channels.

V.   ANALYSIS

1.1.   The existence of aid

| (49) | Article 87(1) of the EC Treaty states:
  “Save as otherwise provided in this Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market”. |
| --- | --- |

(49)

Article 87(1) of the EC Treaty states:

“Save as otherwise provided in this Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market”.

| (50) | In order for aid in the sense of Article 87(1) to be present, there needs to be an aid measure imputable to the State which is granted by State resources, affects trade between Member States and distort competition in the common markets, and confers a selective advantage to undertakings. |
| --- | --- |

(50)

In order for aid in the sense of Article 87(1) to be present, there needs to be an aid measure imputable to the State which is granted by State resources, affects trade between Member States and distort competition in the common markets, and confers a selective advantage to undertakings.

| (51) | In the present case, the Commission notes that the notified measure: (i) constitutes a transfer of State resources to C4C (21); (ii) it would favour a particular undertaking in the market, C4C — BBC is not a recipient or a beneficiary of the aid insofar as BBC will receive no more from the licence fee proceeds than it is liable to disburse in aid to C4C or in meeting the reasonable administrative costs of the proposed measure (see paragraphs 25 and 26 above; (iii) by helping C4C to meet switchover costs that other broadcasters might need to meet themselves it would distort, or threaten to distort, competition; and (iv) it could affect trade between Member States in that C4C operates in a European market, even though it is providing public service broadcasting in the UK — for example, it competes with other broadcasters for sports and other programme rights, and the market for the sale of broadcast advertising is to an extent international. The UK authorities have stated in the notification that the notified measure constitutes and aid within the meaning of Article 87(1) of the Treaty. |
| --- | --- |

(51)

In the present case, the Commission notes that the notified measure: (i) constitutes a transfer of State resources to C4C (21); (ii) it would favour a particular undertaking in the market, C4C — BBC is not a recipient or a beneficiary of the aid insofar as BBC will receive no more from the licence fee proceeds than it is liable to disburse in aid to C4C or in meeting the reasonable administrative costs of the proposed measure (see paragraphs 25 and 26 above; (iii) by helping C4C to meet switchover costs that other broadcasters might need to meet themselves it would distort, or threaten to distort, competition; and (iv) it could affect trade between Member States in that C4C operates in a European market, even though it is providing public service broadcasting in the UK — for example, it competes with other broadcasters for sports and other programme rights, and the market for the sale of broadcast advertising is to an extent international. The UK authorities have stated in the notification that the notified measure constitutes and aid within the meaning of Article 87(1) of the Treaty.

Conclusions

| (52) | In the light of the foregoing the Commission can therefore conclude that the notified State measure, in as much as it confers an advantage to C4C which is likely to distort competition and affect trade between Member States constitutes an aid within the meaning of Article 87(1). |
| --- | --- |

(52)

In the light of the foregoing the Commission can therefore conclude that the notified State measure, in as much as it confers an advantage to C4C which is likely to distort competition and affect trade between Member States constitutes an aid within the meaning of Article 87(1).

1.2.   The compatibility assessment

Preliminary remarks

| (53) | It should be recalled that the Commission is in principle in favour of public support for the digital switchover provided that a number of conditions are respected. In particular, the Commission has stated in the past that it would take a favourable view for “financial compensation to public service broadcasters for the cost of broadcasting via all transmission platforms in order to reach the entire population, provided this forms part of the public service mandate” (22). |
| --- | --- |

(53)

It should be recalled that the Commission is in principle in favour of public support for the digital switchover provided that a number of conditions are respected. In particular, the Commission has stated in the past that it would take a favourable view for “financial compensation to public service broadcasters for the cost of broadcasting via all transmission platforms in order to reach the entire population, provided this forms part of the public service mandate” (22).

| (54) | However, the situation of Channel 4 is different in some respects from that of other public service broadcasters. Although entrusted with a PSB remit, Channel 4 is supposed to conduct all of its business and operations on the strength of its commercial activities only. Thus, C4C does not receive any public financial support (like the BBC does through a licence fee or any other mechanism to that effect) but relies on the strength and the flexibility of a commercial operator to deliver its PSB remit. For that reason, there is a need to ensure that the market conditions within which C4C competes against other commercial broadcasters is not distorted by the notified measure. In this respect, the Commission notes that C4C, relying on the strength of its recent commercial successes, has over the last years launched other broadcasting commercial channels, has ventured into video on demand services and has made a foray into new media internet activities, increasing its market share and advertising revenues. Therefore, one would have expected that Channel 4, as the complainant has argued, might be in a sound financial position and able to pay for the costs of its digital expansion, drawing on its current cash reserves and commercial revenues. |
| --- | --- |

(54)

However, the situation of Channel 4 is different in some respects from that of other public service broadcasters. Although entrusted with a PSB remit, Channel 4 is supposed to conduct all of its business and operations on the strength of its commercial activities only. Thus, C4C does not receive any public financial support (like the BBC does through a licence fee or any other mechanism to that effect) but relies on the strength and the flexibility of a commercial operator to deliver its PSB remit. For that reason, there is a need to ensure that the market conditions within which C4C competes against other commercial broadcasters is not distorted by the notified measure. In this respect, the Commission notes that C4C, relying on the strength of its recent commercial successes, has over the last years launched other broadcasting commercial channels, has ventured into video on demand services and has made a foray into new media internet activities, increasing its market share and advertising revenues. Therefore, one would have expected that Channel 4, as the complainant has argued, might be in a sound financial position and able to pay for the costs of its digital expansion, drawing on its current cash reserves and commercial revenues.

| (55) | It is equally true that as Ofcom has noted in its Review of Channel 4's financial situation, in the future, Channel 4, like any other traditional analogue broadcasters, will most likely have to compete within a fiercely competitive digital multichannel environment, vying for advertising revenues and audience capable for sustaining the delivery of its PSB remit. In that sense, digital switchover presents new challenges for existing analogue broadcasters (but also more opportunities).In the present case, for the reasons explained in more detail below, the information provided by the UK does not enable the Commission to assess whether or not, taking into account the market development, C4C will have in the short term a net public service cost which could justify the granting of State aid. If such net public service cost cannot be demonstrated, any grant of State aid by the UK authorities would imply overcompensation of C4C. |
| --- | --- |

(55)

It is equally true that as Ofcom has noted in its Review of Channel 4's financial situation, in the future, Channel 4, like any other traditional analogue broadcasters, will most likely have to compete within a fiercely competitive digital multichannel environment, vying for advertising revenues and audience capable for sustaining the delivery of its PSB remit. In that sense, digital switchover presents new challenges for existing analogue broadcasters (but also more opportunities).In the present case, for the reasons explained in more detail below, the information provided by the UK does not enable the Commission to assess whether or not, taking into account the market development, C4C will have in the short term a net public service cost which could justify the granting of State aid. If such net public service cost cannot be demonstrated, any grant of State aid by the UK authorities would imply overcompensation of C4C.

Assessment of compatibility under Article 87(2) and 87(3)

| (56) | As stated in the Broadcasting Communication, State aid provided for public service broadcasting must be examined by the Commission in order to determine whether or not it can be found compatible with the common market. The derogations listed in Article 87(2) and Article 87(3) can be applied. However, the UK authorities have not relied on any of the above mentioned provisions nor have they argued that the notified aid falls under the cultural exemption of Article 87(3)(d). Instead, the UK authorities have argued that aid should be declared compatible under Article 86(2) concerning services of general economic interest. |
| --- | --- |

(56)

As stated in the Broadcasting Communication, State aid provided for public service broadcasting must be examined by the Commission in order to determine whether or not it can be found compatible with the common market. The derogations listed in Article 87(2) and Article 87(3) can be applied. However, the UK authorities have not relied on any of the above mentioned provisions nor have they argued that the notified aid falls under the cultural exemption of Article 87(3)(d). Instead, the UK authorities have argued that aid should be declared compatible under Article 86(2) concerning services of general economic interest.

Assessment of compatibility under Article 86(2): Risk of overcompensation

| (57) | As the Court has consistently held, Article 86 provides for a derogation and must therefore be interpreted restrictively. The Court has clarified that in order for a measure to benefit from such a derogation, it is necessary that all the following conditions be fulfilled: (i) the service in question must be a service of general economic interest and clearly defined as such by the Member State (definition); (ii) the undertaking in question must be explicitly entrusted by the Member State with the provision of that service (entrustment); and (iii) the application of the competition rules of the Treaty (in this case, the ban on State aid) must obstruct the performance of the particular tasks assigned to the undertaking and the exemption from such rules must not affect the development of trade to an extent that would be contrary to the interests of the Community (proportionality test). In the present case, it is not contested that the two first above mentioned conditions that is “definition” and “entrustment” are fulfilled. Indeed, Channel 4 has been entrusted by law with the delivery of a public service remit and is also subject to the supervision of Ofcom. Channel 4's public service programming remit has also been defined in Section 265(3) of the Communications Act 2003. |
| --- | --- |

(57)

As the Court has consistently held, Article 86 provides for a derogation and must therefore be interpreted restrictively. The Court has clarified that in order for a measure to benefit from such a derogation, it is necessary that all the following conditions be fulfilled: (i) the service in question must be a service of general economic interest and clearly defined as such by the Member State (definition); (ii) the undertaking in question must be explicitly entrusted by the Member State with the provision of that service (entrustment); and (iii) the application of the competition rules of the Treaty (in this case, the ban on State aid) must obstruct the performance of the particular tasks assigned to the undertaking and the exemption from such rules must not affect the development of trade to an extent that would be contrary to the interests of the Community (proportionality test). In the present case, it is not contested that the two first above mentioned conditions that is “definition” and “entrustment” are fulfilled. Indeed, Channel 4 has been entrusted by law with the delivery of a public service remit and is also subject to the supervision of Ofcom. Channel 4's public service programming remit has also been defined in Section 265(3) of the Communications Act 2003.

| (58) | The Commission has doubts as to whether the financial support pledged for Channel 4 is necessary and proportional within the meaning of the Broadcasting Communication. As mentioned above, the Commission's practice has been to accept that public service broadcasters can receive aid for the extra capital costs that result from their obligation to switch to digital transmission and their obligation to continue covering as large a territory as in the analogue era. In fact, BBC is funding its own digital switchover from a corresponding increase in the licence fee. |
| --- | --- |

(58)

The Commission has doubts as to whether the financial support pledged for Channel 4 is necessary and proportional within the meaning of the Broadcasting Communication. As mentioned above, the Commission's practice has been to accept that public service broadcasters can receive aid for the extra capital costs that result from their obligation to switch to digital transmission and their obligation to continue covering as large a territory as in the analogue era. In fact, BBC is funding its own digital switchover from a corresponding increase in the licence fee.

| (59) | As stated above, Channel 4 position is however different to the extent that its PSB remit is funded and supported exclusively by the commercial activities (advertising revenues) of its core channel and all its other broadcasting, non-PSB channels. Thus, to the extent that C4C may have the financial resources to meet its PSB obligations on the digital terrestrial platform (cash reserves), the mere fact that the switchover may affect its profitability (but not viability) does not constitute a valid reason for claiming State funding. |
| --- | --- |

(59)

As stated above, Channel 4 position is however different to the extent that its PSB remit is funded and supported exclusively by the commercial activities (advertising revenues) of its core channel and all its other broadcasting, non-PSB channels. Thus, to the extent that C4C may have the financial resources to meet its PSB obligations on the digital terrestrial platform (cash reserves), the mere fact that the switchover may affect its profitability (but not viability) does not constitute a valid reason for claiming State funding.

| (60) | In particular on the basis of the LEK report, the Commission has doubts as to whether there can be a proper or adequate justification for the aid given to Channel 4 given the basic conclusion of the report according to which, although there may be a long term funding issue for Channel 4, in the short to medium term Channel 4 faces the prospect of declining profits, not the loss of its ability to deliver its PSB remit or indeed to maintain its current scheduling. |
| --- | --- |

(60)

In particular on the basis of the LEK report, the Commission has doubts as to whether there can be a proper or adequate justification for the aid given to Channel 4 given the basic conclusion of the report according to which, although there may be a long term funding issue for Channel 4, in the short to medium term Channel 4 faces the prospect of declining profits, not the loss of its ability to deliver its PSB remit or indeed to maintain its current scheduling.

| (61) | In fact, in a recent Statement by Channel 4 concerning its Programme Policy for 2007, it is said that “continuing the corporate strategy initially set out in 2004, Channel 4 will extend the values of its remit across the digital channels More4, E4 and Film4 and in its new media services without diminishing its core channel offer. For the first time, Channel 4's entire digital TV channel portfolio will be available free-to-air on all digital platforms for the whole year in 2007. New media activities will increase considerably, with a 2007 budget of 22 million-key developments will include the re-launch of E4.com, improvements in the 4oD video on demand service, new automated online programme support and the redesign of channel4.com with new web2.0 tools for use across Channel 4 sites”. |
| --- | --- |

(61)

In fact, in a recent Statement by Channel 4 concerning its Programme Policy for 2007, it is said that “continuing the corporate strategy initially set out in 2004, Channel 4 will extend the values of its remit across the digital channels More4, E4 and Film4 and in its new media services without diminishing its core channel offer. For the first time, Channel 4's entire digital TV channel portfolio will be available free-to-air on all digital platforms for the whole year in 2007. New media activities will increase considerably, with a 2007 budget of 22 million-key developments will include the re-launch of E4.com, improvements in the 4oD video on demand service, new automated online programme support and the redesign of channel4.com with new web2.0 tools for use across Channel 4 sites”.

| (62) | Far from indicating any kind of financial difficulties or challenges, the above 2007 Statement shows that C4C will not only maintain its core channel offer (thus no perceived threat to its PSB remit delivery) but will also invest in new media, relaunch some of its non-PSB channels and invest in new video on demand services. |
| --- | --- |

(62)

Far from indicating any kind of financial difficulties or challenges, the above 2007 Statement shows that C4C will not only maintain its core channel offer (thus no perceived threat to its PSB remit delivery) but will also invest in new media, relaunch some of its non-PSB channels and invest in new video on demand services.

| (63) | In its reply to the Commission request for information, the UK authorities stated that the aid is not only intended to cover the capital cost of digital switchover, but also the overall impact of switchover on Channel 4's medium to long-term financial performance. However, Channel 4's long-term financial performance is a separate issue, linked to the question of what kind of funding support Channel 4 will need in the future to deliver its PSB remit. |
| --- | --- |

(63)

In its reply to the Commission request for information, the UK authorities stated that the aid is not only intended to cover the capital cost of digital switchover, but also the overall impact of switchover on Channel 4's medium to long-term financial performance. However, Channel 4's long-term financial performance is a separate issue, linked to the question of what kind of funding support Channel 4 will need in the future to deliver its PSB remit.

| (64) | This exercise would require assessing the costs for delivering Channel 4's PSB remit. This has not been done by the UK authorities for the purposes of the notified aid mechanism. Accordingly, the Commission does not have at this stage the required information to assess whether the aid in question is indeed necessary and proportional to help Channel 4 meet its PSB remit post digital switchover.In fact, given that C4C is not currently facing any financial difficulty, the necessity of the notified aid is not clear. |
| --- | --- |

(64)

This exercise would require assessing the costs for delivering Channel 4's PSB remit. This has not been done by the UK authorities for the purposes of the notified aid mechanism. Accordingly, the Commission does not have at this stage the required information to assess whether the aid in question is indeed necessary and proportional to help Channel 4 meet its PSB remit post digital switchover.In fact, given that C4C is not currently facing any financial difficulty, the necessity of the notified aid is not clear.

| (65) | The Commission's doubts are further compounded by the fact that all the other non-PSB Channels of C4C are also benefiting from the digital expansion of the 3 & 4 Multiplex given to C4C without bearing the relative costs (23). At this stage, it is not clear to the Commission why the non-PSB commercial activities of Channel 4 should benefit from the aid to Channel 4 if they are not entrusted by law with the delivery of a PSB remit. |
| --- | --- |

(65)

The Commission's doubts are further compounded by the fact that all the other non-PSB Channels of C4C are also benefiting from the digital expansion of the 3 & 4 Multiplex given to C4C without bearing the relative costs (23). At this stage, it is not clear to the Commission why the non-PSB commercial activities of Channel 4 should benefit from the aid to Channel 4 if they are not entrusted by law with the delivery of a PSB remit.

| (66) | In its reply to the request for information, the UK authorities stated that the current reserves of C4C (around GBP 145 million) are earmarked to meet the monthly capital expenditure of the Corporation and cannot be treated as proper reserves. At this stage, however, it is not clear to the Commission why the current reserves of C4C could not also be used for the costs of digital switchover and should only be used for the on-going financing of C4C's current and new media and broadcasting activities that are non related to C4's PSB remit. |
| --- | --- |

(66)

In its reply to the request for information, the UK authorities stated that the current reserves of C4C (around GBP 145 million) are earmarked to meet the monthly capital expenditure of the Corporation and cannot be treated as proper reserves. At this stage, however, it is not clear to the Commission why the current reserves of C4C could not also be used for the costs of digital switchover and should only be used for the on-going financing of C4C's current and new media and broadcasting activities that are non related to C4's PSB remit.

| (67) | It may be recalled that in the most likely scenarios, LEK's analysis of Channel 4's business model points to declining profits from 2008 onwards. However, as Ofcom has also confirmed, in these scenarios Channel 4's cash reserves are more than sufficient to ensure the survival of the core channel until at least 2010, “fluctuations in working capital notwithstanding” (24). This conclusion by Ofcom is at odds with the UK authorities' position that the cash reserves should remain intact to protect C4C against possible fluctuations in the working capital requirementsIn more positive scenarios, LEK's analysis indicates that Channel 4's business model may be able to deliver stable profits and growing cash balances throughout the period to 2012. According to Ofcom, the above suggests that in LEK's projections there are unlikely to be “immediate, intractable financial pressures that would require Channel 4 to make significant reductions in its remit delivery before around 2010”. |
| --- | --- |

(67)

It may be recalled that in the most likely scenarios, LEK's analysis of Channel 4's business model points to declining profits from 2008 onwards. However, as Ofcom has also confirmed, in these scenarios Channel 4's cash reserves are more than sufficient to ensure the survival of the core channel until at least 2010, “fluctuations in working capital notwithstanding” (24). This conclusion by Ofcom is at odds with the UK authorities' position that the cash reserves should remain intact to protect C4C against possible fluctuations in the working capital requirementsIn more positive scenarios, LEK's analysis indicates that Channel 4's business model may be able to deliver stable profits and growing cash balances throughout the period to 2012. According to Ofcom, the above suggests that in LEK's projections there are unlikely to be “immediate, intractable financial pressures that would require Channel 4 to make significant reductions in its remit delivery before around 2010”.

| (68) | From 2010 onwards, LEK suggests that financial pressures on the core channel are likely to grow. However, the timing and extent of the pressures cannot be predicted with certainty. If the programme mix remains unchanged, LEK's analysis suggests that Channel 4's commercial performance is likely to deteriorate, as a result of increasing competition for its most profitable programmes, and some ongoing inflation in other programme costs at a time of flat or declining advertising revenues. |
| --- | --- |

(68)

From 2010 onwards, LEK suggests that financial pressures on the core channel are likely to grow. However, the timing and extent of the pressures cannot be predicted with certainty. If the programme mix remains unchanged, LEK's analysis suggests that Channel 4's commercial performance is likely to deteriorate, as a result of increasing competition for its most profitable programmes, and some ongoing inflation in other programme costs at a time of flat or declining advertising revenues.

| (69) | These scenarios are however separate issues not linked as such to the capital costs of digital switchover, but to the consequences of the digital switchover itself. The analysis of these scenarios may result in an assessment of the ability of Channel 4 to deliver its PSB remit in a multichannel digital environment. Such an analysis however has not been undertaken by the UK authorities in the notification. The Commission notes that this issue is currently being analysed by Ofcom and no conclusions are available at this stage. |
| --- | --- |

(69)

These scenarios are however separate issues not linked as such to the capital costs of digital switchover, but to the consequences of the digital switchover itself. The analysis of these scenarios may result in an assessment of the ability of Channel 4 to deliver its PSB remit in a multichannel digital environment. Such an analysis however has not been undertaken by the UK authorities in the notification. The Commission notes that this issue is currently being analysed by Ofcom and no conclusions are available at this stage.

| (70) | One would have expected Channel 4 to have made an analysis of the expected costs of the public service and expected revenues from the commercial exploitation of that service (which according to the broadcasting communication must be discounted from the public service costs) in order to assess whether the capital costs of switchover can be met, or whether State aid is necessary. |
| --- | --- |

(70)

One would have expected Channel 4 to have made an analysis of the expected costs of the public service and expected revenues from the commercial exploitation of that service (which according to the broadcasting communication must be discounted from the public service costs) in order to assess whether the capital costs of switchover can be met, or whether State aid is necessary.

| (71) | It is important to stress here that Ofcom in its latest financial review of Channel 4 (see above paragraph (32)) did not rule out the adoption of short term measures “if they helped Channel 4 avoid making reductions in its public service delivery in response to uncertainty about it financial position”. For Ofcom such measures would need to have the following characteristics: (i) provide support between now and 2011-2012; (ii) their impact could be quantified and known to Channel 4 with a reasonable degree of certainty; (iii) Channel 4 would be able to demonstrate how such measures would help the core channel continue to deliver its remit; and (iv) such measures should not have any lasting consequences that might prejudice the Government's longer term policy for Channel 4 (25). Even if we were to accept that the notified aid is in fact a short term measure aimed not so much at enabling Channel 4 meeting the capital costs of digital switchover, but the declining profitability in a multichannel competitive environment, the notified aid does not appear to have any of the above characteristics. In fact, although the notified measure does not appear to have any long lasting effect on how Channel 4 may operate in the future, there has not been any quantification so far of the net costs of C4Cs PSB remit in a digital environment, neither Channel 4 has demonstrated that the aid will be necessary to deliver its PSB remit. |
| --- | --- |

(71)

It is important to stress here that Ofcom in its latest financial review of Channel 4 (see above paragraph (32)) did not rule out the adoption of short term measures “if they helped Channel 4 avoid making reductions in its public service delivery in response to uncertainty about it financial position”. For Ofcom such measures would need to have the following characteristics: (i) provide support between now and 2011-2012; (ii) their impact could be quantified and known to Channel 4 with a reasonable degree of certainty; (iii) Channel 4 would be able to demonstrate how such measures would help the core channel continue to deliver its remit; and (iv) such measures should not have any lasting consequences that might prejudice the Government's longer term policy for Channel 4 (25). Even if we were to accept that the notified aid is in fact a short term measure aimed not so much at enabling Channel 4 meeting the capital costs of digital switchover, but the declining profitability in a multichannel competitive environment, the notified aid does not appear to have any of the above characteristics. In fact, although the notified measure does not appear to have any long lasting effect on how Channel 4 may operate in the future, there has not been any quantification so far of the net costs of C4Cs PSB remit in a digital environment, neither Channel 4 has demonstrated that the aid will be necessary to deliver its PSB remit.

Conclusions

| (72) | According to the broadcasting communication, in the case of State support for public service broadcasting, in order to determine whether there is overcompensation, the Commission would need first to determine the gross costs of the PSB, deduct the benefit of the commercial exploitation of the public service (e.g. advertising) so as to obtain the net public service cost. Moreover, the Commission has to ascertain that the broadcaster in question does not engage in distortions of competition which are not necessary for the fulfilment of the public service mission. Only if there is a net cost, then the said broadcaster should be entitled to obtain State aid. |
| --- | --- |

(72)

According to the broadcasting communication, in the case of State support for public service broadcasting, in order to determine whether there is overcompensation, the Commission would need first to determine the gross costs of the PSB, deduct the benefit of the commercial exploitation of the public service (e.g. advertising) so as to obtain the net public service cost. Moreover, the Commission has to ascertain that the broadcaster in question does not engage in distortions of competition which are not necessary for the fulfilment of the public service mission. Only if there is a net cost, then the said broadcaster should be entitled to obtain State aid.

| (73) | The information provided so far by the UK does not enable the Commission to assess whether or not given its digital switchover obligations, C4 will have in the short term net public service costs which would allow it to receive State aid. |
| --- | --- |

(73)

The information provided so far by the UK does not enable the Commission to assess whether or not given its digital switchover obligations, C4 will have in the short term net public service costs which would allow it to receive State aid.

| (74) | To conclude, the Commission doubts whether the notified measure is compatible with the common market. |
| --- | --- |

(74)

To conclude, the Commission doubts whether the notified measure is compatible with the common market.

VI.   DECISION

| (75) | In the light of the foregoing considerations the Commission requests the UK authorities to provide all necessary information to demonstrate (on the basis of the appropriate financial data) that the aid they intend to grant to C4 is necessary in order to enable C4 to deliver its public service remit, and is not going to result in overcompensation, taking into account also the revenues of C4C from its commercial activities. |
| --- | --- |

(75)

In the light of the foregoing considerations the Commission requests the UK authorities to provide all necessary information to demonstrate (on the basis of the appropriate financial data) that the aid they intend to grant to C4 is necessary in order to enable C4 to deliver its public service remit, and is not going to result in overcompensation, taking into account also the revenues of C4C from its commercial activities.

| (76) | The Commission request your authorities to forward a copy of this letter to the recipient of this aid immediately. |
| --- | --- |

(76)

The Commission request your authorities to forward a copy of this letter to the recipient of this aid immediately.

| (77) | The Commission wishes to remind the United Kingdom that Article 88(3) of the EC Treaty has suspensory effect, and would draw your attention to Article 14 of Council Regulation (EC) No 659/1999, which provides that all unlawful aid may be recovered from the recipient.’ |
| --- | --- |

(77)

The Commission wishes to remind the United Kingdom that Article 88(3) of the EC Treaty has suspensory effect, and would draw your attention to Article 14 of Council Regulation (EC) No 659/1999, which provides that all unlawful aid may be recovered from the recipient.’

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(1)  OJ C 320, 15.11.2001, p. 5.

1

(2)  OJ C 320, 15.11.2001, p. 5.

2

(3)  Ofcom makes reference to a fourth source of PSB, the broadcasting market at large which includes all other commercial broadcasters which while not explicitly entrusted with a PSB remit and have received no funding or privileged access to spectrum, nonetheless produce content that meets the PSB purposes although the supply its not guaranteed, see “Digital PSB, Public Service Broadcasting post Digital Switchover”, Ofcom Issue Paper, 27 July 2007, p. 6.

3

Digital PSB, Public Service Broadcasting post Digital Switchover

(4)  Section 264 of the Communications Act 2003 required Ofcom to report on the effectiveness of the existing television public service broadcasters — BBC, ITV, Channel 4, S4C, Five and Teletext — in the delivery of their PSB obligations; and to make recommendations for maintaining and strengthening the quality of PSB for the future.

4

(5)  E4, More4, Film Four and C4 + 1 are owned and operated by 4 Ventures Ltd, which is 100 % owned by C4C.

5

(6)  These results are for the C4C group which includes Channel 4, all other non PSB channels, its new media activities (Channel 4.com), and Channel 4 International Limited which is responsible for the exploitation of secondary rights. C4C also has partial stakes in a number of other subsidiaries including One Word Radio Limited in which C4C holds 51 % of the equity, and the 4 Digital Group Limited (which holds the licence to a national DAB multiplex) in which it has a 55 % stake. It also holds 50 % of a joint-venture digital channel business with Emap, a very successful UK media corporation. 4 Ventures also holds equity stakes in a number of other businesses including Popworld (29 %), SwitchCo (11 %), Espresso Broadband (10 %), Taste of London (50 %).

6

(7)  C4C, by internal accounting, imposes a notional charge on Channel 4 and the other C4C channels for the capacity they occupy.

7

(8)  Confidential data.

8

(9)  Ofcom: “Digital PSB, Public Service broadcasting post Digital Switchover”, Issue Paper 27 July 2006, “For Channel 4 — where the main channel has performed well — strong digital share and revenues have meant its overall performance has improved substantially”, p. 16.

9

(10)  Section 3, paragraphe 3.2.

10

(11)  Section 3, paragraphe 3.5.

11

(12)  Ibid.

12

Ibid

(13)  Section 3, paragraphs 3.6 and 3.7.

13

(14)  Section 3, paragraph 3.16.

14

(15)  Section 3, paragraphs 3.16 and 3.17 and Section 5, paragraph 5.10.

15

(16)  See Section 5, paragraphs 5.35 to 5.40.

16

(17)  Section 5, paragraphs 5.24 to 5.27.

17

(18)  The UK acknowledges that C4C's currently healthy cash balances are being used to acquire increased commercial footprint and further cross-media access, e.g. moving into radio to address long term structural issues, including through investment in a company which secured the newly-awarded national DAB multiplex as a joint venture with a consortium of radio broadcasters.

18

(19)  Communication from the Commission on the application of Sate aid rules to public service broadcasting (2001/C 320/04) (OJ C 320, 15.11.2001, p. 5).

19

(20)  The “definition”, “entrustment” and “proportionality test” are the three cumulative conditions that need to be met in order or a measure to benefit from the derogation of Article 86(2), see paragraph 29 of the “Broadcasting” Communication, op. cit.

20

(21)  That conclusion is not affected by the fact that the aid will be funded from the proceeds of the licence fee of BBC. As the Commission found in the past, “the compulsory legal nature of the licence fee [of BBC] and the express approval by the State for the financing of the service from licence fee funds unequivocally establish the use of state resources”; see Commission Decision of 1 October 2003, State aid 37/03 — United Kingdom, “BBC Digital Curriculum”, at paragraph 21.

21

(22)  See in particular, IP/05/1394 issued at the time of the adoption of the Commission Decision in case C 25/2004 “DVB-T Berlin-Brandenburg” where the Commission also explained how digital TV could be supported. The Commission is in favour of public support for the digital switchover also for broadcaster's activities beyond what is covered by their public service remit. As the Commission has stated in the past, grants can “aim at covering part of the additional cost of broadcasters caused by the additional burden to broadcast both in analogue and digital mode” and “it is also possible to award grants to broadcasters for investments enabling digital signal transmission”. Beneficiaries of such grants can be both private broadcasters and public service broadcasters. Such grants have to be technologically neutral, beneficiaries have to be selected in open calls for proposals, the funding has to be necessary for the realisation of the project and be limited to the directly attributable, actually incurred eligible costs for the projects; see Commission decision of 16 March 2005, N 622/03 — Austria, “Digitalisierungsfonds”.

22

(23)  Non-PSB channels would not meet any of the investment costs related to the digital expansion. As mentioned in footnote 7, C4C currently charges non-PSB channels for the spectrum capacity they occupy by internal accounting.

23

(24)  Ofcom, Channel 4 Financial review, Statement, 14 June 2007, page 1.

24

Channel 4 Financial review

(25)  Ibid at p. 5.

25

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