Commission communication on the cumulation of aids for different purposes (85/C 3/03)

In its communication of 21 December 1978 on regional aid schemes, the Commission announced its intention of examining with experts from the Member States the question of the cumulation of regional aids with other aids.

Having completed its examination, the Commission has reached the conclusion that significant cases of cumulation of aids should be notified to it to enable it to control the cumulative intensity of the aids and assess their effect on competition and trade between Member States. It therefore proposes to the Member States, under Article 93 (1) of the EEC Treaty, that they henceforth notify significant cases of cumulation of aids in accordance with the rules set out below.

I. Notification of significant cases of cumulation of aids

1. The Member States notify in advance to theCommission significant cases of cumulation ofaids, which are defined as those projects where theinvestment exceeds 12 million ECU or where thecumulative intensity of the aids exceeds 25 % netgrant equivalent.

2. Cumulation of aids is defined as the application ofmore than one aid scheme to a given investmentproject.

An investment programme undertaken by a firm isdefined as all investments in fixed assets (whetheror not in the same place) necessary to carry outthe project.

II. Derogations

The following cases will be exempt from notification: 1. cases where the investment does not exceed 3million ECU, whatever the cumulative intensity ofthe aid;

2. cases where the cumulative intensity of the aiddoes not exceed 10 % net grant equivalent,whatever the scale of the investment;

3. cases where the intensity of all the aids to begranted for the investment project remains belowthe ceiling for any one of the aid schemes underwhich aid is being awarded to the project, whichceiling has been laid down or approved by theCommission either in a Community framework orby individual decision.

This exemption is without prejudice to theobligation of Member States to remain within theceiling for each individual scheme.

The Commission will send each Member State aparticular list of the schemes concerned and therelevant ceilings.

4. The Commission may withdraw these exemptionsin cases where it finds evidence of distortions ofcompetition.

III. Legal basis

Notification is made on the basis of Article 93 (3) of the EEC Treaty. The Commission is therefore informed in sufficient time to enable it to submit its comments before the proposed aids are put into effect.

The Commission will make a determination on cases notified to it within a maximum of 30 working days.

IV. Aids concerned

1. The aids to be taken into account for the purposesof the notification thresholds laid down in sectionsI and II are all aids towards expenditure on fixedassets, whatever form (for example, capital grants,interest subsidies, tax concessions, relief of socialsecurity contributions) the aids may take. Themain types of aid schemes concerned are: - general aids,

- regional aids,

- sectoral aids,

- aids for small and medium-sized firms,

- aids for research, development and innovation,

- aids for energy conservation and environmentalprotection.

2. Where investment aid is supplemented by aid forstaff training and the latter is prompted by andthus directly linked to the investment, the twotypes of aid cannot be divorced in considering theintensity of the aid. Such training aid is thereforealso taken into account for the purposes of thenotification thresholds laid down in sections I andII.

3. So that the Commission is aware of the fullcircumstances surrounding notified cases of cumulationof aids, it is also informed of any aidgranted to rescue a firm in difficulties or forcreating jobs or for marketing - although theseaids do not count towards the notificationthresholds - and of any other financialintervention by the State or other public authoritieswhere the intervention can be regarded asaid or there is a presumption that it is aid.

The Commission is also informed of aids grantedof the types listed in sub-section IV.1 above wherethey are not directly linked to the notifiedinvestment project.

V. Technical guidelines

To facilitate the administrative work involved and ensure consistency in the calculation methods used, the Commission will send the Member States technical guidelines explaining, among other things, how the intensity of the various aids is to be calculated.

VI. Entry into force and special rules

The notification rules come into force on 1 March 1985. They do not apply to the products listed in Annex II to the EEC Treaty. They are also without prejudice to the rule contained in point 12 of the Principles of Coordination of regional aid schemes (1) and to the Member States'obligations under existing or future provisions laid down by the Commission in decisions on particular general, regional or sectoral aid schemes to notify individual cases (2). (1) This rule concerns cases where several different regional aids are awarded for a given investment project. (2) For example, all awards of aids to the steel industry (ECSC) are already notified to the Commission.