Commission communication to Member States

Multisectoral framework on regional aid for large investment projects - Code on aid to the synthetic fibres industry

(2001/C 226/04)

(Text with EEA relevance)

The current multisectoral framework on regional aid for large investment projects was adopted in 1997 and entered into force on 1 September 1998 for an initial trial period of three years. Before the end of the trial period, the Commission must carry out a thorough review of the utility and scope of the framework, which must, inter alia, consider the question of whether it should be renewed, revised or abolished.

The Commission services intend to organise two multilateral meetings with representatives of Member States to discuss the preliminary review of the utility and scope of the framework as well as to explore options for the future.

In the meantime it becomes necessary to extend the current framework until 31 December 2001, to allow for the above consultations with the Member States.

The code on aid to the synthetic fibres industry came into force on 1 April 1996 with a period of validity of three years. Its validity was extended until 31 August 2001, to enable the Commission to assess in the context of the review of the multisectoral framework whether or not a sectoral framework for the synthetic fibres industry remains appropriate any longer. Since the validity of the multisectoral framework must be extended to allow an adequate consultation procedure with the Member States, the Commission considers that the validity of the code on aid to the synthetic fibres industry should be extended over the same period, i.e. until 31 December 2001. This will enable the Commission to assess in the context of the review of the multisectoral framework whether or not a sectoral framework for the synthetic fibres industry remains appropriate any longer.

The Member States were informed by the Commission's services at the multilateral meeting held on 7 June 2001 that the Commission intended to extend the validity of the multisectoral framework on regional aid for large investment projects and of the code on aid to the synthetic fibres industry until 31 December 2001 in order to allow consultations with the Member States about the future of the frameworks.

At its meeting on 3 July 2001, the Commission accordingly decided to extend the validity of the multisectoral framework on regional aid for large investment projects and the code on aid to the synthetic fibres industry until 31 December 2001.

At the same meeting the Commission decided to propose, in the form of an appropriate measure within the meaning of Article 88(1) of the EC Treaty, that the Member States comply with the rules of the multisectoral framework on regional aid for large investment projects and of the code on aid to the synthetic fibres industry resulting from this extension, and in particular the notification requirements laid down therein.

Your government is asked to inform the Commission within one month of receipt of this communication whether it agrees to the above proposals. If your government does not signify its agreement within that period, the Commission will be obliged to initiate the procedure provided for in Article 88(2) of the EC Treaty in respect of all approved aid schemes which may apply to the sectors covered by the multisectoral framework on regional aid for large investment projects and the code on aid to the synthetic fibres industry.