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STATE AID — GERMANY

State aid No C 39/2005 (ex NN 36/2005 & N 189/2005) — Exemption from the tax on mineral oils for greenhouses

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

(2006/C 67/08)

(Text with EEA relevance)

By means of the letter dated 20 October 2005 reproduced in the authentic language on the pages following this summary, the Commission notified Germany of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty concerning part of 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:

These comments will be communicated to Germany. 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

I.   Procedure

In the course of the examination of State Aid No N 499/01 (continuation of the eco-tax reform), the Commission learned that Germany had introduced, prior to this reform, two non-notified tax exemptions in favour of the agriculture sector: one on diesel fuel used in agriculture and one on heating materials used in greenhouses and covered establishments. The law on the eco-tax provided for a two-year extension of the greenhouse measure.

Additional information was submitted by Germany on the above tax exemptions by letters of 29 August 2001, 12 February 2003, 7 June 2005 and 2 August 2005. A State aid dossier was opened in the meantime under the number NN 36/2005.

By letter of 19 April 2005, registered as received on 20 April 2005, Germany notified a new measure extending the original tax exemption scheme for greenhouses to the years 2005 and 2006. As the content of the measures is identical, they have been assessed together. The decision only concerns the tax exemption for greenhouses.

II.   Description

In 2001, Germany introduced a reduced standard rate of mineral oil tax on heating materials (heating fuel, methane, liquid gas) used in greenhouses. This tax exemption was granted in form of a tax refund (Vergütung). The measure was implemented until 2004.

III.   Assessment

This measure constitutes State aid. The German authorities maintain that it can benefit from the derogation laid down in the Council Directives on the taxation of energy products (Directive 92/81 EC, replaced as from 2003 by Directive 96/2003). According to these directives, Member States may apply reduced rates of taxation to energy products used in horticulture.

However, the Commission does not share this view. The energy products directives, in particular Directive 96/2003, specify that tax measures introduced by Member States must be compatible with Community law, and that the derogatory provisions of the directives are without prejudice to competition rules. The measures should not be detrimental to the proper functioning of the internal market and should not result in distortions of competition.

Therefore, the Commission takes the view that competition rules must take priority over the possibility for Member States to provide preferential fiscal treatment. In the case at hand, there seems to be no legal basis in State aid legislation to authorize this measure.

It should be pointed out that this exemption is highly selective, in that it differentiates, even within horticulture, between open field and greenhouse producers.

Moreover, this aid appears to be particularly distortive, since a reduction of the fiscal burden on energy products in a high energy-intensive sector such as greenhouse horticulture has a direct impact on production costs and therefore on competitiveness.

The Commission considers, at this stage, that this measure may constitute operating aid incompatible, in principle, with the common market.

On the basis of these considerations, the Commission has decided to initiate the procedure provided for by article 88(2) of the EC treaty in respect of the above measure.

In accordance with Article 14 of Council Regulation (EC) No 659/1999, all unlawful aid can be subject to recovery from the recipient. Furthermore, expenditure on national measures directly affecting Community measures might not be eligible for cover by the EAGGF budget.

TEXT OF LETTER

‘Die Kommission setzt Deutschland mit diesem Schreiben davon in Kenntnis, dass sie nach Prüfung der von den deutschen Behörden übermittelten Informationen zu der eingangs genannten Beihilfe beschlossen hat, wegen der betreffenden Maßnahme das Verfahren gemäß Artikel 88 Absatz 2 EG-Vertrag einzuleiten.

I.   VERFAHREN

II.   BESCHREIBUNG

Rechtsgrundlage

Beihilfeempfänger

Ausführliche Beschreibung der Beihilfemaßnahmen

III.   WÜRDIGUNG

Vorliegen einer Beihilfe im Sinne von Artikel 87 Absatz 1 EG-Vertrag

Vereinbarkeit der Beihilfe

IV.   BESCHLUSS

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(1)  Überwiegend für den Anbau von Pilzen.

(2)  Vergütungsanträge für im Jahre 2001 verwendete Brennstoffe wurden überwiegend im Jahre 2002 eingereicht.

(3)  Einschließlich geschlossene Kulturräume.

(4)  Im Jahre 2003 beispielsweise belief sich in der EU-15 der Handel mit Gemüse auf 8 346 000 Tonnen und mit Obst auf 10 081 000 Tonnen (Quelle: Eurostat).

(5)ABl. C 28 vom 1.2.2000, S. 2.

(6)ABl. L 283 vom 31.10.2003. Diese Richtlinie ist am 31. Oktober 2003 in Kraft getreten.

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