EN Official Journal of the European Union CE 70/133

(2004/C 70 E/135)

WRITTEN QUESTION E-2733/03

by Hiltrud Breyer (Verts/ALE) to the Commission

(11 September 2003)

Subject: Subsidies to the Georgsmarienhütte steelworks

On 1 March 2003, the Neue Osnabrücker Zeitung (NOZ) reported an exchange of land between the Georgsmarienhütte steelworks (Georgsmarienhütte GmbH) and the town of Georgsmarienhütte. On 23 April 2003, the NOZ further reported that the Land of Lower Saxony was providing EUR 1,9 million towards the transaction. This payment is related to a purchase of land by the town of Georgsmarienhütte from the steelworks around ten years ago at the vastly inflated price of around DEM 15 million. The EU had already contested part of the payments made by Lower Saxony to the steelworks around ten years ago of around DEM 80 million. Moreover, repeated sales between the steelworks and local authorities raise the suspicion of illegal subsidies.

1. To what extent is the reported payment by Lower Saxony of EUR 1,9 million compatible with EU rules?

2. Was the Commission notified of the payment made by the Government of Lower Saxony?

3. How much of the payments made by Lower Saxony to the Georgsmarienhütte steelworks, which the EU contested, has been paid back, and when?

4. To what extent are the repeated sales between the steelworks and local authorities since 1990 of the ‘Hüttenbahn’ railway line used by the steelworks, including, most recently, its sale to the Verkehrsgesells-chaft Landkreis Osnabrück (Osnabrück Rural District Travel Company), compatible with EU law?

Answer given by Mr Monti on behalf of the Commission

(21 October 2003)

1. From the information contained in the written question it is not possible to see, for which purpose the Land made the payment of EUR 1,9 million and if this payment granted an advantage to Georgsmarienhütte steel works. An assessment, whether this payment is in line with the Union provisions, is therefore not possible at this point in time. The Commission will request information from Germany as concerns the exchange of land and the payment of EUR 1,9 by the Land of Lower Saxony.

2. The payment by the Government of the Land was not notified to the Commission.

3. As already laid down in the answer to the written question E-0057/01 of the Honourable Member (1), in January 2000 the Federal Government submitted information to the Commission, from which it followed, that Georgsmarienhütte steel works had repaid State aid amounting to DEM 46 million including interest to the land of Lower Saxony. In addition, as also explained in this answer, on 8 May 2000 the Federal Government submitted information to the Commission, that the sale of the land ‘Westerkamp’ had been annulled. The Georgsmarienhütte Holding GmbH has therefore repaid all State aid that had been assessed as incompatible to the Land of Lower Saxony.

4. According to the Federal Government, the sale of the ‘Hüttenbahn’ by the Klöckner Werke (1978) and the repurchase by Georgsmarienhütte steel works (1996) did not result in a significant profit for Georgsmarienhütte steel works. The Commission therefore, on the basis of the information available, does not consider that State aid was granted in this context. The Commission does not possess any information about a further sale of the ‘Hüttenbahn’ by Georgsmarienhütte steelwork to Verkehrsgesellschaft Landkreis Osnabrück (Osnabrück rural district company). The Commission will request further information on this sale from Germany.

(1) OJ C 235 E, 21.8.2001.