WRITTEN QUESTION No. 2979/97 by Christoph KONRAD to the Commission. List of current disputes between the Federal Republic of Germany (especially the 'new Länder') and the Commission (DG IV) over competition
Date: 1997-10-01
Institutions: European Parliament, KONRAD
Subjects: European Commission, Federation State, German Democratic Republic, Germany, State aid, aid to undertakings, complaint to the Commission, control of State aid, restriction on competition

30. 4. 98

EN

Official Journal of the European Communities

C 134/47

(98/C 134/57)

WRITTEN QUESTION E-2979/97

by Christoph Konrad (PPE) to the Commission

(1 October 1997)

Subject: List of current disputes between the Federal Republic of Germany (especially the (cid:145)new La¤nder(cid:146)) and the

Commission (DG IV) over competition

1. What  state  aid  granted  by  the  Federal  Republic  of  Germany  to  German  enterprises  is  currently  being
examined by the Commission?

Precisely what is being examined, and to what complaint is the Commission reacting, or is the examination

2.
being undertaken on the Commission(cid:146)s own initiative?

3. What is the ratio of cases of state aid in the (cid:145)new La¤nder(cid:146) to such cases in the (cid:145)old La¤nder(cid:146)?

4. What trend both in the level of financial assistance and in the number of cases can be deduced from the
examination procedures, especially in respect of state aid in the (cid:145)new La¤nder(cid:146), in recent years?

5.
How does the Commission intend to reduce the number of cases in which state aid is granted in the (cid:145)new
La¤nder(cid:146) to an acceptable level, and what agreements have been reached with Federal German Government to this
end?

6. What is the position of the other Member States of the European Union on this situation?

Answer given by Mr Van Miert on behalf of the Commission

(29 October 1997)

1.
The  Commission  is  currently  examining  59  cases  to  establish  whether  aid  provided  by  Germany  is
compatible with the single market. This does not include aid programmes or aid in the agricultural, fisheries or
transport  sector.  Of  those  cases  43  concern  the  new  La¤nder  and  16  the  old  La¤nder.  Proceedings  under
Article 93(2) of the EC Treaty were initiated in a total of 23 cases, of which 17 related to the new La¤nder and 6 to
the old La¤nder.

2.
Some of the cases in which proceedings have been initiated are included on a list sent to the Honourable
Member  and  to  Parliament’s  Secretariat.  The  subject  of  each  investigation  is  indicated.  The  Commission  is
responding both to complaints from competitors of the firms receiving aid and to media reports.

In answering this question, the number of cases in which a decision had already been taken in 1997 were

3.
used as an indicator. Altogether, 51 decisions in 1997 related to the new La¤nder and 14 to the old La¤nder.

4.
A  detailed  evaluation  is  needed  to  answer  this  question.  Prior  to  31  December  1995  a  succession  of
different (cid:145)Treuhand(cid:146) arrangements applied. Because of such blanket authorisation the Commission dealt with
only  the  most  important  cases,  which  were  few  in  number.  It  should  be  noted  that  the  number  of  cases  is
increasing. In the first seven months of 1997 the Commission adopted almost six times as many decisions as in
the whole of 1995. The level of aid, on the other hand, is falling. In this connection, however, the statistics are
affected by important individual cases, such as the BUNA case in 1995, which involved almost DM 10 billion in
aid. In 1997 the Commission took decisions on aid to the new La¤nder amounting to DM 3.18 billion.

5.
Since  1  January  1996  the  Commission  has  applied  the  general  rules  on  aid  to  the  new  La¤nder.  A  large
number of extra staff have been needed both by the Commission and by the German Government to deal with the
increased work load.

6.
The  other  Member  States  have  not  been  consulted  on  this  matter.  However,  the  Commission  is  able  to
conclude  from  its  own  experience  that,  generally  speaking,  the  other  Member  States  support  its  action  and
proposals.