Communication of the Commission to Member States

Multisectoral framework on regional aid for large investment projects

Code on aid to the synthetic fibres industry

Community framework for State aid to the motor vehicle industry

(2001/C 368/03)

(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. In July 2001, its validity was extended until 31 December 2001, to enable the Commission to complete its review.

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 December 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.

In 1989, the Commission introduced a Community framework for State aid to the motor vehicle industry. Its validity was extended until 31 December 2001, to enable the Commission to assess in the context of the review of the multisectoral framework whether or not a sectoral framework for State aid to the motor vehicle industry remains appropriate any longer.

A first multilateral meeting of the Commission services with experts of Member States was held on 13 July 2001 to discuss the preliminary review of the utility and scope of the multisectoral framework as well as to explore options for the future. A further multilateral meeting takes place on 13 November 2001 to discuss a new draft multisectoral framework.

In the meantime it becomes necessary to extend the validity of the current multisectoral framework on regional aid for large investment projects, the code on aid to the synthetic fibres industry and the Community framework for State aid to the motor vehicle industry current framework until 31 December 2002, to allow an adequate consultation procedure with the Member States, whilst keeping in place a strict aid discipline.

By letter dated 12 October 2001, your Government was informed that the Commission intends to extend the validity of the multisectoral framework on regional aid for large investment projects, of the code on aid to the synthetic fibres industry and of the Community framework for State aid to the motor vehicle industry until 31 December 2002 in order to allow consultations with the Member States about the future multisectoral framework. If the new multisectoral framework enters into force before 31 December 2001, it will replace the three prolonged frameworks as of the date of its entry into force.

At its meeting on 13 November 2001, the Commission accordingly decided to extend the validity of the multisectoral framework on regional aid for large investment projects, of the code on aid to the synthetic fibres industry and of the Community framework for State aid to the motor vehicle industry until 31 December 2002.

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, of the code on aid to the synthetic fibres industry and of the Community framework for State aid to the motor vehicle industry resulting from this extension, and in particular the notification requirements laid down therein.

Your Government is asked to inform the Commission by 26 November 2001 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, the code on aid to the synthetic fibres industry and the Community framework for State aid to the motor vehicle industry.