2001R0070 — EN — 19.03.2004 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No70/2001
of12January2001
ontheapplicationofArticles87and88oftheECTreatytoStateaidtosmallandmedium-sized
enterprises
(OJ L 10, 13.1.2001, p. 33)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 364/2004 of 25 February 2004 L 63 22 28.2.2004
▼B
COMMISSIONREGULATION(EC)No70/2001
of12January2001
on the application of Articles 87 and 88 of the EC Treaty to State
aidtosmallandmedium-sizedenterprises
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 994/98 of 7 May 1998
on the application of Articles 92 and 93 of the Treaty establishing the
European Community to certain categoriesof horizontal State aid (1),
and in particular points(a)(i) and (b) of Article 1(1) thereof,
Having published a draft of this Regulation (2),
Having consulted the Advisory Committee on State Aid,
Whereas:
(1)Regulation (EC) No 994/98 empowers the Commission to
declare, in accordance with Article 87 of the Treaty, that under
certain conditions aid to small and medium-sized enterprises is
compatible with the common market and not subject to the noti-fication requirement of Article 88(3) of the Treaty.
(2)Regulation (EC) No 994/98 also empowers the Commission todeclare, in accordance with Article 87 of the Treaty, that aidthat complies with the map approved by the Commission for
each Member State for the grant of regional aid iscompatible
with the common market and isnot s ubject to the notificationrequirement of Article 88(3) of the Treaty.
(3)The Commission has applied Articles 87 and 88 of the Treaty tosmall and medium-sized enterprises in and outside assisted areasin numerous decisions and has also stated its policy, mostrecently in the Community guidelineson State aid for s mall
and medium-sized enterprises (
3) and in the guidelineson
national regional aid (4). In the light of the Commission's consid-
erable experience in applying those Articles to small andmedium-sized enterprises and in the light of the general textsrelating to small and medium-sized enterprises and to regional
aid issued by the Commission on the basis of those provisions,
it is appropriate, with a view to ensuring efficient supervisionand simplifying administration without weakening Commissionmonitoring, that the Commission should make use of the powersconferred by Regulation (EC) No 994/98.
(4)This Regulation is without prejudice to the possibility forMember States of notifying aid to small and medium-sized
enterprises. Such notifications will be assessed by the Commis-
sion in particular in the light of the criteria set out in thisRegulation. The guidelineson State aid for s mall and medium-sized enterprises should be abolished from the date of entryinto force of thisRegulation, s ince their contentsare replacedby thisRegulation.
(5)Small and medium-sized enterprises play a decisive role in job
creation and, more generally, act as a factor of social stability
and economic drive. However, their development may be limitedby market imperfections. They often have difficulties inobtaining capital or credit, given the risk-shy nature of certainfinancial marketsand the limited guaranteesthat they may be
able to offer. Their limited resources may also restrict their
access to information, notably regarding new technology andpotential markets. Having regard to those considerations, the2001R0070 — EN — 19.03.2004 — 001.001 — 2
(1) OJ L 142, 14.5.1998, p. 1.
(2) OJ C 89, 28.3.2000, p. 15.
(3) OJ C 213, 23.7.1996, p. 4.
(4) OJ C 74, 10.3.1998, p. 9.
▼B
purpose of the aid exempted by this Regulation should be to
facilitate the development of the economic activitiesof s malland medium-sized enterprises, provided that such aid does not
adversely affect trading conditions to an extent contrary to the
common interest.
(6)ThisRegulation s hould exempt any aid that meetsall the rele-vant requirementsof thisRegulation, and any aid s cheme,provided that any aid that could be granted under such schememeetsall the relevant requirementsof thisRegulation. With a
view to ensuring efficient supervision and simplifying adminis-
tration without weakening Commission monitoring, aid schemesand individual grants outside any aid scheme should contain anexpress reference to this Regulation.
(7)This Regulation should apply without prejudice to special rulesin regulationsand directivesconcerning State aid in certainsectors, such as currently exist for shipbuilding, and should not
apply to agriculture and fisheries and aquaculture.
(8)In order to eliminate differences that might give rise to distor-tionsof competition, in order to facilitate coordination between
different Community and national initiativesconcerning s malland medium-sized enterprises, and for reasons of administrativeclarity and legal certainty, the definition of ‘small and medium-sized enterprises’ used in this Regulation should be that laid
down in Commission Recommendation 96/280/EC of 3 April
1996 concerning the definition of small and medium-sized enter-prises (
1). That definition was also used in the Community
guidelines on State aid for small and medium-sized enter-prises (
2).
(9)In accordance with the established practice of the Commission,and with a view to better ensuring that aid is proportionate and
limited to the amount necessary, thresholds should be expressed
in terms of aid intensities in relation to a set of eligible costs,rather than in termsof maximum aid amounts .
(10)In order to determine whether or not aid iscompatible with thecommon market pursuant to this Regulation, it is necessary totake into consideration the aid intensity and thus the aid amountexpressed as a grant equivalent. The calculation of the grant
equivalent of aid payable in several instalments and aid in the
form of a soft loan requires the use of market interest ratesprevailing at the time of grant. With a view to a uniform, trans-parent, and simple application of the State aid rules, the marketrates for the purposes of this Regulation should be deemed to bethe reference rates, provided that, in the case of a soft loan, the
loan isbacked by normal s ecurity and doesnot involve abnormal
risk. The reference rates should be those which are periodicallyfixed by the Commission on the basis of objective criteria andpublished in the Official Journal of the European Communities
and on the Internet.
(11)Having regard to the differences between small enterprises andmedium-sized enterprises, different ceilings of aid intensity
should be set for small enterprises and for medium-sized enter-
prises.
(12)The ceilings of aid intensity should be fixed, in the light of theCommission's experience, at a level that strikes the appropriatebalance between minimising distortions of competition in theaided sector and the objective of facilitating the development ofthe economic activities of small and medium-sized enterprises.
(13)It is appropriate to establish further conditions that should be
fulfilled by any aid scheme or individual aid exempted by this
Regulation. Having regard to Article 87(3)(c) of the Treaty,such aid should not normally have the sole effect of continu-2001R0070 — EN — 19.03.2004 — 001.001 — 3
(1) OJ L 107, 30.4.1996, p. 4.
(2) See footnote 3.
▼B
ously or periodically reducing the operating costs which the
beneficiary would normally have to bear, and should be propor-tionate to the handicapsthat have to be overcome in order to
secure the socioeconomic benefits deemed to be in the Commu-
nity interest. It is therefore appropriate to limit the scope of thisRegulation to aid granted in relation to certain tangible andintangible investments, certain services supplied to beneficiariesand certain other activities. In the light of Community overcapa-
city in the transport sector, with the exception of railway rolling
stock, eligible investment costs for enterprises having their maineconomic activity in the transport sector should not includetransport means and equipment.
(14)This Regulation should exempt aid to small and medium-sized
enterprises regardless of location. Investment and job creation
can contribute to the economic development of less favouredregions in the Community. Small and medium-sized enterprisesin those regions suffer from both the structural disadvantage ofthe location and the difficultiesderiving from their s ize. It istherefore appropriate that small and medium-sized enterprises in
assisted regions should benefit from higher ceilings.
(15)In order not to favour the capital factor of an investment over
the labour factor, provision should be made for the possibilityof measuring aid to investment on the basis of either the costsof the investment or the costs of new employment linked to the
carrying-out of the investment project.
(16)In the light of the World Trade Organisation (WTO) Agreement
on Subsidies and Countervailing Measures (1), thisRegulation
should not exempt export aid or aid favouring domestic overimported products. Aid towards the costs of participation in tradefairs or of studies or consultancy services needed for the launch
of a new or existing product on a new market does not normally
constitute export aid.
(17)Having regard to the need to strike the appropriate balancebetween minimising distortions of competition in the aidedsector and the objectives of this Regulation, it should not exempt
individual aid grantswhich exceed a fixed maximum amount,
whether or not made under an aid scheme exempted by thisRegulation.
(18)In order to ensure that the aid is necessary and acts as an incen-tive to develop certain activities, this Regulation should not
exempt aid for activitiesin which the beneficiary would already
engage under market conditionsalone.
(19)ThisRegulation s hould not exempt aid cumulated with otherState aid, including aid granted by national, regional or localauthorities, or with Community assistance, in relation to the
same eligible costs, when such cumulation exceeds the thresh-
oldsfixed in thisRegulation.
(20)In order to ensure transparency and effective monitoring, inaccordance with Article 3 of Regulation (EC) No 994/98, it isappropriate to establish a standard format in which MemberStates should provide the Commission with summary informa-
tion whenever, in pursuance of this Regulation, an aid scheme
is implemented or an individual aid outside such schemes isgranted, with a view to publication in the Official Journal of
the European Communities . For the same reasons, it is appro-
priate to establish rules concerning the records that Member
Statess hould keep regarding the aid exempted by thisRegula-
tion. For the purposes of the annual report to be submitted tothe Commission by Member States, it is appropriate for theCommission to establish its specific requirements, including, inview of the wide availability of the necessary technology, infor-mation in computerised form.2001R0070 — EN — 19.03.2004 — 001.001 — 4
(1) OJ L 336, 23.12.1994, p. 156.
▼B
(21)Having regard to the Commission's experience in this area, and
in particular the frequency with which it is generally necessary
to revise State aid policy, it is appropriate to limit the period ofapplication of thisRegulation. Should thisRegulation expirewithout being extended, aid schemes already exempted by thisRegulation should continue to be exempted for six months,
HAS ADOPTED THIS REGULATION:
Article 1
Scope
1. Without prejudice to special Community Regulations or Direc-
tivesunder the EC Treaty governing the granting of State aid in
specific sectors, whether more or less restrictive than this Regulation,this Regulation applies to aid granted to small and medium-sized enter-prises in all sectors.
2. ThisRegulation s hall not apply:
(a)with regard to Articles4 and 5, to activitieslinked to the production,
processing or marketing of products listed in Annex I to the Treaty;
(b)to aid to export-related activities, namely aid directly linked to the
quantities exported, to the establishment and operation of a distribu-
tion network or to other current expenditure linked to the exportactivity;
(c)to aid contingent upon the use of domestic over imported goods;
(d)to aid falling within the scope of Council Regulation (EC) No 1407/
2002 (
1).
Article 2
Definitions
For the purpose of this Regulation:
(a) ‘aid’ shall mean any measure fulfilling all the criteria laid down in
Article 87(1) of the Treaty;
(b) ‘small and medium-sized enterprises’ shall mean enterprises as
defined in Annex I;
(c) ‘investment in tangible assets’ shall mean an investment in fixed
physical assets relating to the creation of a new establishment, theextension of an existing establishment, or the engagement in an
activity involving a fundamental change in the product or produc-
tion process of an existing establishment (in particular throughrationalisation, diversification or modernisation). An investment infixed assets undertaken in the form of the takeover of an establish-ment which has closed or which would have closed had it not beenpurchased shall also be regarded as tangible investment;
(d) ‘investment in intangible assets’ shall mean investment in transfer
of technology by the acquisition of patent rights, licences, know-how or unpatented technical knowledge;
(e) ‘gross aid intensity’ shall mean the aid amount expressed as a
percentage of the project's eligible costs. All figures used shall be
taken before any deduction for direct taxation. Where aid is
awarded in a form other than a grant, the aid amount shall be thegrant equivalent of the aid. Aid payable in several instalments shallbe discounted to its value at the moment of granting. The interestrate to be used for discounting purposes and for calculating the aid2001R0070 — EN — 19.03.2004 — 001.001 — 5
(1) OJ L 205, 2.8.2002, p. 1.▼M1
▼B
▼M1
▼B
▼B
amount in a soft loan shall be the reference rate applicable at the
time of grant.
For aid for research and development (R&D), the gross aid inten-
sity for an R&D project being carried out in collaboration between
public research establishments and enterprises shall be calculated
on the basis of the combined aid deriving from direct governmentsupport for a specific research project and, where they constituteaid, contributionsfrom public non-profit-making higher educationor research establishments to the project;
(f) ‘net aid intensity’ shall mean the aid amount net of tax expressed
as a percentage of the project's eligible costs;
(g) ‘number of employees’ shall mean the number of annual labour
units(ALU), namely the number of pers onsemployed full time inone year, part-time and seasonal work being ALU fractions;
(h) ‘fundamental research’ shall mean an activity designed to broaden
scientific and technical knowledge not linked to industrial or
commercial objectives;
(i) ‘industrial research’ shall mean planned research or critical investi-
gation aimed at the acquisition of new knowledge, the objective
being that such knowledge may be useful in developing newproducts, processes or services or in bringing about a significantimprovement in existing products, processes or services;
(j) ‘pre-competitive development’ shall mean the shaping of the results
of industrial research into a plan, arrangement or design for new,altered or improved products, processes or services, whether theyare intended to be sold or used, including the creation of an initialprototype which could not be used commercially. This may also
include the conceptual formulation and design of other products,
processes or services and initial demonstration projects or pilotprojects, provided that such projects cannot be converted or usedfor industrial applications or commercial exploitation. It does notinclude the routine or periodic changesmade to products , produc-
tion lines, manufacturing processes, existing services and other
operations in progress, even if such changes may representimprovements.
Article 3
Conditionsforexemption
1. Individual aid outside any scheme, fulfilling all the conditions of
thisRegulation, s hall be compatible with the common market within
the meaning of Article 87(3) of the Treaty and shall be exempt fromthe notification requirement of Article 88(3) of the Treaty providedthat it containsan expres sreference to thisRegulation, by citing itstitle and publication reference in the Official Journal of the European
Communities .
2. Aid schemes fulfilling all the conditions of this Regulation shall
be compatible with the common market within the meaning of Article87(3) of the Treaty and shall be exempt from the notification require-ment of Article 88(3) of the Treaty provided that:
(a) any aid that could be awarded under such scheme fulfils all the
conditionsof thisRegulation;
(b) the scheme contains an express reference to this Regulation, by
citing itstitle and publication reference in the Official Journal of
the European Communities .
3. Aid granted under the schemes referred to in paragraph 2 shall be
compatible with the common market within the meaning of Article87(3) of the Treaty and shall be exempt from the notification require-ment of Article 88(3) of the Treaty provided that the aid granteddirectly fulfilsall the conditionsof thisRegulation.2001R0070 — EN — 19.03.2004 — 001.001 — 6
▼M1
▼B
▼M1
▼B
▼B
Article 4
Investment
1. Aid for investment in tangible and intangible assets inside or
outside the Community shall be compatible with the common marketwithin the meaning of Article 87(3) of the Treaty and shall be exemptfrom the notification requirement of Article 88(3) of the Treaty if itfulfilsthe conditionsof paragraphs2 to 6.
2. Where the investment takes place in areas or in sectors which do
not qualify for regional aid pursuant to Article 87(3)(a) and (c) of theTreaty at the moment the aid is granted, the gross aid intensity shallnot exceed:
(a) 15 % in the case of small enterprises;
(b) 7,5 % in the case of medium-sized enterprises.
3. Where the investment takes place in areas and in sectors which
qualify for regional aid at the moment the aid isgranted, the aid inten-sity shall not exceed the ceiling of regional investment aid determinedin the map approved by the Commission for each Member State by
more than:
(a) 10 percentage pointsgros sin areascovered by Article 87(3)(c),
provided that the total net aid intensity does not exceed 30 %; or
(b) 15 percentage pointsgros sin areascovered by Article 87(3)(a),
provided that the total net aid intensity does not exceed 75 %.
The higher regional aid ceilingss hall only apply if the aid isgranted
under the condition that the investment is maintained in the recipientregion for at least five years and the beneficiary's contribution to itsfinancing isat leas t 25 %.
4. The ceilings fixed in paragraphs 2 and 3 shall apply to intensity
of the aid calculated either asa percentage of the inves tment'seligiblecosts or as a percentage of the wage costs of employment created bythe carrying-out of an investment (aid to job creation) or a combinationthereof, provided the aid doesnot exceed the mos t favourable amount
resulting from the application of either calculation.
5. In cases where the aid is calculated on the basis of the invest-
ment's costs, the eligible costs of tangible investment shall be the
costs relating to investment in land, buildings, machinery and equip-
ment. In the transport sector, except for railway rolling stock,transport means and transport equipment shall not be included in theeligible costs. The eligible costs of intangible investment shall be thecosts of acquisition of the technology.
6. In cases where the aid is calculated on the basis of jobs created,
the amount of the aid shall be expressed as a percentage of the wagecosts over a period of two years relating to the employment created
under the following conditions:
(a) job creation shall be linked to the carrying-out of a project of
investment in tangible or intangible assets. Jobs shall be created
within three yearsof the inves tment'scompletion;
(b) the investment project shall lead to a net increase in the number of
employees in the establishment concerned, compared with theaverage over the previoustwelve months ; and
(c) the employment created shall be maintained during a minimum
period of five years.2001R0070 — EN — 19.03.2004 — 001.001 — 7
▼M1
▼B
▼B
Article 5
Consultancyandotherservicesandactivities
Aid to small and medium-sized enterprises that fulfil the following
conditionss hall be compatible with the common market within themeaning of Article 87(3) of the Treaty and shall be exempt from thenotification requirement of Article 88(3) of the Treaty:
(a) for services provided by outside consultants, the gross aid shall not
exceed 50 % of the costs of such services. The services concernedshall not be a continuous or periodic activity nor relate to the enter-
prise's usual operating expenditure, such as routine tax consultancy
services, regular legal services, or advertising;
(b) for participation in fairs and exhibitions, the gross aid shall not
exceed 50 % of the additional costs incurred for renting, settingup and running the stand. This exemption shall only apply to the
first participation of an enterprise in a particular fair or exhibition.
Article 5a
Aidforresearch anddevelopment
1. Aid for research and development shall be compatible with the
common market within the meaning of Article 87(3)(c) of the Treatyand shall be exempt from the notification requirement of Article 88(3)of the Treaty if it fulfilsthe conditionss et out in paragraphs2 to 5.
2. The aided project must completely fall within the stages of
research and development defined in Article 2(h), (i) and (j).
3. The gross aid intensity, as calculated on the basis of the eligible
costs of the project, shall not exceed:
(a) 100 % for fundamental research;
(b) 60 % for industrial research;
(c) 35 % for pre-competitive development.
If a project includes different stages of research and development, the
permissible aid intensity shall be established on the basis of the
weighted average of the respective permissible aid intensities, calcu-lated on the basis of the eligible costs involved.
In the case of collaborative projects, the maximum amount of aid for
each beneficiary shall not exceed the permitted aid intensity calculatedby reference to the eligible costs incurred by the beneficiary concerned.
4. The ceilingsin paragraph 3 may be increas ed asfollowsup to a
maximum gross aid intensity of 75 % for industrial research and 50 %for pre-competitive development:
(a) where the project takesplace in an area which, at the time when
the aid isgranted, qualifiesfor regional aid, the maximum aidintensity may be increased by 10 percentage points gross in areas
covered by Article 87(3)(a) of the Treaty and by five percentage
pointsgros sin areascovered by Article 87(3)(c) of the Treaty;
(b) where the project aimsat carrying out res earch with potential
multi-sectoral application and focuses on a multidisciplinaryapproach in accordance with the objective, tasks and technicaltargetsof a s pecific project or programme undertaken under the
Sixth Framework Programme for research and development, estab-
lished by Decision No 1513/2002/EC of the European Parliamentand of the Council (
1) or any subsequent Framework Programme
for research and development or Eureka, the maximum aid inten-sity may be increased by 15 percentage points gross;2001R0070 — EN — 19.03.2004 — 001.001 — 8
(1) OJ L 232, 29.8.2002, p. 1.▼M1
▼M1
(c) the maximum aid intensity may be increased by 10 percentage
points if one of the following conditions is satisfied:
(i) the project involves effective cross-border cooperation
between at least two independent partners in two MemberStates, particularly in the context of coordinating nationalR&D policies; no single company in the Member Stategranting the aid may bear more than 70 % of the eligible
costs; or
(ii) the project involveseffective cooperation between a company
and a public research body, particularly in the context of coor-
dination of national R&D policies, where the public researchbody bears at least 10 % of the eligible project costs and hasthe right to publish the results insofar as they stem fromresearch implemented by that body; or
(iii) the results of the project are widely disseminated through tech-
nical and scientific conferences or published in peer-reviewedscientific and technical journals.
For the purposes of points (i) and (ii) subcontracting is not consid-
ered to be effective cooperation.
5. Eligible costs for the purposes of this Article shall be the
following:
(a) personnel costs (researchers, technicians and other supporting staff
to the extent employed on the research project);
(b) costs of instruments and equipment to the extent and for the dura-
tion used for the research project. If such instruments andequipment are not used for their full life for the research project,only the depreciation costs corresponding to the life of the researchproject, ascalculated on the bas isof good accounting practice, are
considered as eligible;
(c) costs for buildings and land, to the extent and for the duration used
for the research project. With regard to buildings, only the depre-ciation costs corresponding to the life of the research project, ascalculated on the basis of good accounting practice, are considered
as eligible. For land, costs of commercial transfer or actually
incurred capital costs are eligible;
(d) cost of consultancy and equivalent services used exclusively for the
research activity, including research, technical knowledge and
patents bought or licensed from outside sources at market prices,
where the transaction has been carried out at arm's length and thereis no element of collusion involved. These costs are only consid-ered eligible up to 70 % of total eligible project costs;
(e) additional overheads incurred directly as a result of the research
project;
(f) other operating expenses, including costs of materials, supplies and
similar products incurred directly as a result of the researchactivity.
Article 5b
Aidfortechnical feasibilitystudies
Aid for technical feasibility studies preparatory to industrial research
activitiesor pre-competitive development activitiess hall be compatible
with the common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of Article88(3) of the Treaty provided that the gross aid intensity, as calculatedon the basis of study costs, does not exceed 75 %.
Article 5c
Aidforpatentingcosts
1. Aid for the costs associated with obtaining and validating patents
and other industrial property rights shall be compatible with thecommon market within the meaning of Article 87(3)(c) of the Treatyand shall be exempt from the notification requirement of Article 88(3)2001R0070 — EN — 19.03.2004 — 001.001 — 9
▼M1
of the Treaty up to the same level of aid as would have qualified as
R&D aid in respect of the research activities which first led to theindustrial property rights concerned.
2. Eligible costs for the purposes of paragraph 1 shall be the
following:
(a) all costs preceding the grant of the right in the first legal jurisdic-
tion, including costs relating to the preparation, filing andpros ecution of the application aswell ascos tsincurred in renewingthe application before the right hasbeen granted;
(b) translation and other costs incurred in order to obtain the granting
or validation of the right in other legal jurisdictions;
(c) costs incurred in defending the validity of the right during the offi-
cial prosecution of the application and possible opposition
proceedings, even if such costs occur after the right is granted.
Article 6
Largeindividualaidgrants
1. In the case of aid covered by Articles 4 and 5, this Regulation
shall not exempt an individual aid grant where one of the followingthresholds is met:
(a) the total eligible costs of the whole project are at least
EUR 25 000 000; and
(i) in areasor in s ectorswhich do not qualify for regional aid, the
gross aid intensity is at least 50 % of the ceilings laid down inArticle 4(2);
(ii) in areasand in s ectorswhich qualify for regional aid, the net
aid intensity is at least 50 % of the net aid ceiling as deter-mined in the regional aid map for the area concerned; or
(b) the total gross aid amount is at least EUR 15 000 000.
2. In the case of aid covered by Articles 5a, 5b and 5c, this Regula-
tion shall not exempt an individual aid grant where the following
thresholds are met:
(a) the total eligible costs of the whole project incurred by all compa-
niesparticipating in the project are at leas t EUR 25 000 000; and
(b) it is proposed to provide aid with a gross grant equivalent of at
least EUR 5 000 000 to one or more of the individual companies.
In the case of aid granted to a Eureka project, the thresholds in the first
subparagraph shall be replaced by the following:
(a) the total eligible costs of the Eureka project incurred by all compa-
niesparticipating in the project are at leas t EUR 40 000 000; and
(b) it is proposed to provide aid with a gross grant equivalent of at
least EUR 10 000 000 to one or more of the individual companies.
Article 6a
AidremainingsubjecttopriornotificationtotheCommission
1. ThisRegulation s hall not exempt any aid, whether individual aid
or aid granted under an aid scheme, in the form of one or moreadvances that are repayable only in the event of a successful outcomeof research activities, where the total amount of the advances expressedas a percentage of the eligible costs exceeds the intensities provided forin Articles5a, 5b or 5c or the limit fixed in Article 6(2).2001R0070 — EN — 19.03.2004 — 001.001 — 10
▼M1
2. ThisRegulation iswithout prejudice to any obligation on a
Member State to notify individual grantsof aid under other State aidinstruments, and in particular the obligation to notify, or to inform the
Commission of, aid to an enterprise receiving restructuring aid within
the meaning of the Community guidelineson State aid for res cuingand restructuring firms in difficulty (
1) and the obligation to notify
regional aid for large investment projects under the applicable multi-sectoral Framework.
Article 7
Necessityfortheaid
ThisRegulation s hall only exempt aid if, before work on the aided
project iss tarted:
— either an application for aid hasbeen s ubmitted to the Member
State by the beneficiary, or
— the Member State has adopted legal provisions establishing a legal
right to aid according to objective criteria and without further exer-cise of discretion by the Member State.
Article 8
Cumulation
1. The aid ceilings fixed in Articles 4 to 6 shall apply regardless of
whether the support for the aided project is financed entirely from Stateresources or is partly financed by the Community.
2. Aid exempted by thisRegulation s hall not be cumulated with any
other State aid within the meaning of Article 87(1) of the Treaty, or
with other Community funding, in relation to the same eligible costs,if such cumulation would result in an aid intensity exceeding that fixedby thisRegulation.
Article 9
Transparencyandmonitoring
1. On implementation of an aid scheme, or grant of individual aid
outside any scheme, exempted by this Regulation, Member States shall,within 20 working days, forward to the Commission, with a view to itspublication in the Official Journal of the European Communities ,a
summary of the information regarding such aid scheme or individual
aid in the form laid down in Annex II.
2. Member Statess hall maintain detailed recordsregarding the aid
schemes exempted by this Regulation, the individual aid granted underthose schemes, and the individual aid exempted by this Regulation thatis granted outside any existing aid scheme. Such records shall containall information necessary to establish that the conditions for exemption,
aslaid down in thisRegulation, are fulfilled, including information on
the status of the company as an SME. Member States shall keep arecord regarding an individual aid for 10 yearsfrom the date on whichit wasgranted, and regarding an aid s cheme, for 10 yearsfrom the dateon which the last individual aid was granted under such scheme. Onwritten request, the Member State concerned shall provide the
Commission, within a period of 20 working days or such longer period
asmay be fixed in the reques t, with all the information which theCommission considers necessary to assess whether the conditions ofthisRegulation have been complied with.
3. Member Statess hall compile an annual report on the application
of thisRegulation in accordance with the implementing provis ions2001R0070 — EN — 19.03.2004 — 001.001 — 11
(1) OJ C 288, 9.10.1999, p. 2.▼B
▼M1
▼B
▼M1
▼M1
concerning the form and content of annual reportsprovis ionswhich are
laid down pursuant to Article 27 of Council Regulation (EC) No 659/1999 (
1).
Until such provisions enter into force, Member States shall compile an
annual report on the application of thisRegulation in res pect of thewhole or part of each calendar year during which thisRegulationapplies, in the form laid down in Annex III, also in computerisedform. Member States shall provide the Commission with such reportno later than three monthsafter the expiry of the period to which the
report relates.
Article 9a
Transitionalprovisions
1. Notificationsconcerning aid for Res earch and Development
pending on 19 March 2004 shall continue to be assessed under the
Framework for State aid for Research and Development, while all otherpending notifications shall be assessed in accordance with the provi-sions of this regulation.
2. Aid schemes implemented before the date of entry into force of
this Regulation, and aid granted under such schemes in the absence of
a Commission authorisation and in breach of the notification require-
ment of Article 88(3) of the Treaty, shall be compatible with thecommon market within the meaning of Article 87(3) of the Treaty andshall be exempt if they fulfil the conditions laid down in Article 3(2)(a)and Article 3(3) of thisRegulation.
Individual aid outside any scheme granted before the date of entry into
force of this Regulation in the absence of a Commission authorisation
and in breach of the notification requirement of Article 88(3) of the
Treaty, shall be compatible with the common market within themeaning of Article 87(3) of the Treaty and shall be exempt if it fulfilsall the conditionsof thisRegulation, except the requirement in Article3(1) that expres sreference be made to thisRegulation.
Any aid which does not fulfil these conditions shall be assessed by the
Commission in accordance with the relevant frameworks, guidelines,
communicationsand notices .
Article 10
Entryintoforce andperiodofvalidity
1. ThisRegulation s hall enter into force on the 20th day following
that of itspublication in the Official Journal of the European Commu-
nities.
It shall remain in force until 31 December 2006.2. At the end of the period of validity of thisRegulation, aid
schemes exempted under this Regulation shall remain exempted during
an adjustment period of six months.
ThisRegulation s hall be binding in itsentirety and directly applicable
in all Member States.2001R0070 — EN — 19.03.2004 — 001.001 — 12
(1) OJ L 83, 27.3.1999, p. 1.▼B
▼B
ANNEX I
Definitionofsmallandmedium-sizedenterprises
(extract from the Commission Recommendation 96/280/EC of 3 April 1996
concerning the definition of small and medium-sized enterprises (OJ L 107,
30.4.1996, p. 4))
‘Article 1
1. Small and medium-sized enterprises, hereinafter referred to as “SMEs”, are
defined asenterpris eswhich:
— have fewer than 250 employees, and
— have either,
— an annual turnover not exceeding EUR 40 million, or
— an annual balance-sheet total not exceeding EUR 27 million,
— conform to the criterion of independence asdefined in paragraph 3.
2. Where it is necessary to distinguish between small and medium-sized
enterprises, the “small enterprise” is defined as an enterprise which:
— hasfewer than 50 employeesand
— haseither,
— an annual turnover not exceeding EUR 7 million, or
— an annual balance-sheet total not exceeding EUR 5 million,
— conformsto the criterion of independence asdefined in paragraph 3.
3. Independent enterprises are those which are not owned as to 25 % or more
of the capital or the voting rights by one enterprise, or jointly by several enter-
prises, falling outside the definitions of an SME or a small enterprise, whichever
may apply. This threshold may be exceeded in the following two cases:
— if the enterprise is held by public investment corporations, venture capital
companies or institutional investors, provided no control is exercised either
individually or jointly,
— if the capital is spread in such a way that it is not possible to determine by
whom it isheld and if the enterpris e declaresthat it can legitimately
presume that it is not owned as to 25 % or more by one enterprise, or jointly
by several enterprises, falling outside the definitions of an SME or a small
enterprise, whichever may apply.
4. In calculating the thresholds referred to in paragraphs 1 and 2, it is there-
fore necessary to cumulate the relevant figures for the beneficiary enterprise and
for all the enterprises that it directly or indirectly controls through possession of
25 % or more of the capital or of the voting rights.
5. Where it is necessary to distinguish microenterprises from other SMEs,
these are defined as enterprises having fewer than 10 employees.
6. Where, at the final balance sheet date, an enterprise exceeds or falls below
the employee thresholds or financial ceilings, this is to result in its acquiring or
losing the status of “SME”, “medium-sized enterprise”, “small enterprise” or
“microenterprise” only if the phenomenon is repeated over two consecutive
financial years.
7. The number of persons employed corresponds to the number of annual
working units(AWU), that isto s ay, the number of full-time workersemployed
during one year with part-time and seasonal workers being fractions of AWU.
The reference year to be considered is that of the last approved accounting
period.
8. The turnover and balance sheet total thresholds are those of the last
approved 12-month accounting period. In the case of newly-established enter-
prises whose accounts have not yet been approved, the thresholds to apply
shall be derived from a reliable estimate made in the course of the financial
year.’2001R0070 — EN — 19.03.2004 — 001.001 — 13
▼B
ANNEX II
2001R0070 — EN — 19.03.2004 — 001.001 — 14
▼B
2001R0070 — EN — 19.03.2004 — 001.001 — 15
▼B
ANNEX III
Formoftheperiodic reporttobeprovidedtotheCommission
Annual reporting format on aid schemes exempted under a group exemp-
tion regulation adopted pursuant to Article 1 of Council Regulation (EC)
No994/98
Member Statesare required to us e the format below for their reporting obliga-
tions to the Commission under group exemption regulations adopted on the
basis of Council Regulation (EC) No 994/98.
The reports should also be provided in computerised form.
Information required for all aid schemes exempted under group exemption regu-
lations adopted pursuant to Article 1 of Council Regulation (EC) No 994/98
1. Title of aid scheme2. Commission exemption regulation applicable
3. Expenditure
Separate figures have to be provided for each aid instrument within a scheme
or individual aid (e.g. grant, soft loans, etc.) The figures have to be expressed
in euro or, if applicable, national currency. In the case of tax expenditure,
annual tax losses have to be reported. If precise figures are not available,
such losses may be estimated.
These expenditure figures should be provided on the following basis.
For the year under review indicate separately for each aid instrument within
the scheme (e.g. grant, soft loan, guarantee, etc.):
3.1. amounts committed, (estimated) tax losses or other revenue forgone,
data on guarantees, etc. for new assisted projects. In the case of guar-
antee schemes, the total amount of new guarantees handed out should
be provided;
3.2. actual payments, (estimated) tax losses or other revenue forgone, data on
guarantees, etc. for new and current projects. In the case of guarantee
schemes, the following should be provided: total amount of outstanding
guarantees, premium income, recoveries, indemnities paid out, operating
result of the scheme under the year under review;
3.3. number of new assisted projects;3.4. estimated overall number of jobs created or maintained by new projects
(if appropriate);
3.5. estimated overall amount of investment aided by new projects;3.6. Regional breakdown of amountsunder point 3.1 either by regions
defined at NUTS (
1) level 2 or below or by Article 87(3)(a) regions,
Article 87(3)(c) regions and non-assisted regions;
3.7. Sectorial breakdown of amountsunder point 3.1. by beneficiaries '
sectors of activity (if more than one sector is covered, indicate the share
of each):
coalminingmanufacturingof which:
steel
shipbuilding
synthetic fibresmotor vehiclesother manufacturing (please specify)
services
of which:
transport services2001R0070 — EN — 19.03.2004 — 001.001 — 16
(1) NUTS is the nomenclature of territorial units for statistical purposes in the Community.
▼B
financial services
other services (please specify)
other sectors (please specify)
4. Other information and remarks.2001R0070 — EN — 19.03.2004 — 001.001 — 17