2000/46/EC: Commission Decision of 26 July 2000 on the measure and State aid implemented by Germany for the SICAN group and its project partners (Text with EEA relevance.) (notified under document number C(2000) 2466)
Date: 2000-07-26
Institutions: European Commission
Subjects: Germany, State aid, control of State aid, infringement of EU law, microelectronics, research and development

L 18/18

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Official Journal of the European Communities

19.1.2001

COMMISSION DECISION

of 26 July 2000

on the measure and State aid

implemented by Germany for the SICAN group and its project partners

(notified under document number C(2000) 2466)

(Only the German version is authentic)

(Text with EEA relevance)

(2001/46/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community, and in particular Article 88(2) thereof,

Having regard to the Agreement on the European Economic
Area, and in particular Article 62(1)(a) thereof,

Having regard to Council Regulation (EC) No 659/1999 of 22
March 1999 laying down detailed rules for the application of
Article 93 of the EC Treaty (1), and in particular Article 7
thereof,

Having regard to the Commission Decision of 11 March
1998 (2) to initiate the procedure laid down in Article 88(2) in
respect of State aid C 20/98,

(4)

(5)

(6)

By letter dated 26 May 1998 the Commission informed
Germany that it had decided to initiate the procedure
laid down in Article 88(2) of the EC Treaty in respect of
the aid.

The Commission decision to initiate the procedure was
the European
published in the Official
Communities (4). The Commission invited interested
parties
their comments on the aid, but
to submit
received no such comments.

Journal

of

Following the letter informing it of the initiation of the
procedure, Germany sent
the Commission additional
information on the following dates: 21 July 1998, 14
September 1998, 24 November 1998, 11 January 1999,
17 February 1999, 3 March 1999, 27 April 1999, 15
June 1999 and 16 June 1999.

Having called on interested parties to submit their comments
pursuant to those provisions (3),

(7)

Representatives of Germany and of
the Commission
held meetings on 30 September 1998 and 20 May
1999.

Whereas:

(1)

(2)

(3)

I. PROCEDURE

By letter dated 30 September 1996 a complaint was
lodged with the Commission concerning a presumed
EUR 150 million of State aid to SICAN, a firm located
in Hannover, Lower Saxony.

By letter dated 4 November 1996 the Commission
asked Germany for
information, which the Federal
Government provided by letter dated 20 March 1997.
In addition to this information, the Federal Government
sent three separate messages informing the Commission
that aid had been granted.

Federal

The
additional
information at a meeting on 2 December 1997 between
representatives of Germany and of the Commission.

Government

provided

(1) OJ L 83, 27.3.1999. p. 1.
(2) OJ C 307, 7.10.1998. p. 13.
(3)

See footnote 2.

(8) On 2 February 2000 the Commission requested further
information, which Germany provided by letter dated
15 March 2000.

II. DETAILED DESCRIPTION OF THE MEASURES AND
OF THE PRESUMED AID

(9) On the basis of the information which the Commission
had in its possession at the time of initiation of the
procedure, the facts were as follows (5).

A. THE GROUP

(10)

In 1989 the Government of the Land of Lower Saxony
decided, within the framework of the European project
(cid:145)JESSI(cid:146), to set up, together with the Federal Government,
SICAN as a strategic centre of competence for the key

See footnote 2.

(4)
(5) Detailed information is to be found in the Commission notice to
the other Member States (initiation of the procedure in the SICAN
case), see footnote 3.

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L 18/19

technology of microelectronics and their utilisation in
areas of industry and services in order to support and
provide Lower Saxony enterprises with the necessary
skills in the fields of
telecommunications, consumer
electronics, data technology, mechanical engineering and
electrical engineering in applying microelectronics, by
carrying out research projects together with or for
them. Subsequently,
the group was reorganised and
acquired the structure that was to be its until 1998.
While
the SICAN group were
organised as private limited companies (GmbHs), they
were, according to the German authorities, set up to
fulfil the public service task described above, and State
influence is said to have been exercised through the
supervisory organs of the parent company.

enterprises of

the

and

company

assets of

The SICAN group was composed of a management
holding
Beteiligungs-GmbH
SICAN
(hereinafter (cid:145)SIBEG(cid:146)), two operating subsidiaries SICAN
GmbH (hereinafter
SICAN F&E-
(cid:145)SICAN(cid:146))
(cid:145)SIBET(cid:146)) and a company
Betriebs-GmbH (hereinafter
the group SICAN Anlagen
owning the
Verwaltungs GmbH (hereinafter
(cid:145)SIAG(cid:146)). SIBEG was
primarily owned by German and American companies.
SICAN was a wholly owned subsidiary of SIBEG. The
shares in SIBET were held by SIBEG (51 %) and Nord/LB
and some German L(cid:228)nder (49 %). The only shareholder
in SIAG was Nord/LB, as a result of which SIAG was
indirectly state-owned.

to

projects

contract

SICAN carried out more than 500 precompetitive
development
private
under
customers between 1990 and 1998. SIBET is said to
have been primarily non-profit oriented and not active
in the market. It also carried out R & D projects but
in
of
mostly
collaboration with partners from industry and research
institutes. SIAG was non-profit oriented and owner of
the assets of all SICAN companies (buildings, plant,
software and other equipment). It placed these assets at
the disposal of SICAN and SIBET and rendered services
to these companies through its staff.

industrial

research,

stage

the

at

(11)

(12)

for operating costs (EUR 5,92 million (DEM 11,71
million)). SIBET received EUR 31,76 million (DEM
62,79 million)
for investment and R & D projects.
SICAN received EUR 13,64 million (DEM 26,97 million)
as
start-up funding in 1990/1991 and has been
self-supporting ever since.

(b) Aid to project partners of SIBET and SICAN

(15) As far as direct aid is concerned, EUR 5,11 million
(DEM 10,11 million) was given to SIBET to be passed
funding to its collaboration partners
on as project
(research institutes
industry). The maximum
intensity for industrial partners was 50 %. The projects
were claimed to qualify as industrial research. No direct
project funding was given to partners of SICAN.

and

(16) As far as any indirect benefits to the partners of SIBET
and SICAN are concerned,
the German authorities
claimed that SIBET and SICAN rendered their services, if
not at market prices, then at least at full cost and hence
did not pass on any indirect benefits
to other
enterprises.

(c) Aid to SICAN and SIBET as such

(17) As far as aid to SICAN and SIBET is concerned, beyond
the direct funding mentioned in recital 15, advantages
were transferred from SIAG to SICAN and SIBET
through the billing of services rendered by SIAG. While
SIAG billed SICAN and SIBET for the full cost of
personnel services, the German authorities declared that
the fees paid for the use of the assets owned by SIAG
include depreciation costs or the EUR 5,92
did not
million (DEM 11,71 million) that SIAG had received to
cover operating costs.

B. THE PRESUMED AID

(d) Position of Germany

(a) Amounts granted

(13)

The procedure was initiated on the basis that more than
EUR 100 million of public funding had been granted to
the SICAN group between 1990 and 1998, the bulk of
which was given to SIAG to finance the assets of the
group and to cover operating costs.

(14)

From 1990, the group received more than EUR 100
million of public funding from federal and Land sources.
The lion’s share went to SIAG to finance the assets of
the group (EUR 57,5 million (DEM 113,74 million)) and

(18)

(19)

In Germany’s view the aid granted for projects of
SICAN and SIBET was in keeping with the Community
framework
and
for
development (6)
(R & D framework) since the average
intensity never exceeded the intensities permissible
under the framework.

research

State

aid

for

In addition, Germany had
(cid:145)NN
notifications(cid:146) by letter dated 20 March 1997, which
were described in greater detail
in the notice on the
initiation of the procedure.

submitted

three

(6) OJ C 45, 17.2.1996, p. 5.

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19.1.2001

(20)

Finally, at the meeting on 4 December 1997, Germany’s
representatives asserted that aid to the project partners
of the SICAN group could fall under a research and
development
scheme approved by the Commission,
without specifying which aid scheme.

III. DECISION OF THE COMMISSION TO INITIATE
THE PROCEDURE

received a total of DEM 9,73 million (EUR 4,97
million), of which DEM 2,7 million (EUR 1,38 million)
went to public research institutes and DEM 7 million
(EUR 3,58 million) to 15 industrial partners. Germany
submitted project descriptions of those 15 projects as
requested by the Commission and claimed that all
projects had rightly been classified as industrial research.
The listed individual amounts of aid granted to these 15
companies and the list of project costs incurred by them
showed that the ceiling of 50 % of project costs was not
exceeded.

(21)

formal

The Commission initiated the
investigation
procedure (7) because, on the basis of the information in
its possession, it doubted whether the conditions of the
R & D framework were fulfilled. In order to assess this,
it would, inter alia, have been necessary to attribute the
aid involved to specific research projects and then to
determine the research stage and quantify the total
amount of aid granted, so as to allow for a calculation
and evaluation of
the aid intensity involved and to
demonstrate the necessity and the incentive effect of the
aid. The German authorities had not provided the
information that was needed in order to make such an
they had not been able to
assessment.
demonstrate
a
SICAN group
cost-accounting system which would have made it
possible to guarantee that all services were rendered by
the company to third parties at the market price or at
full cost.

In particular,

applied

that

the

(25)

small

(SME)

enterprise

and medium-sized

Five project partners were not covered by the definition
of
in
accordance with the Community guidelines on State aid
for small and medium-sized enterprises (8). In one case,
the aid amount (below DEM 36 000 or EUR 18 406)
was beneath the de minimis threshold as laid down in
the Commission notice on the de minimis rule for State
aid (9). For the other four companies, Germany provided
information which was supposed to explain why the aid
served as an incentive within the meaning of point 6 of
the R & D framework for the company to carry out the
research.

(26)

The 15 projects are described below. Unless the name
of the company is given, the recipient was an SME as
defined by the Community.

IV. COMMENTS FROM INTERESTED PARTIES

(22)

The Commission received no comments from interested
parties.

(27)

Project 1005:

V. COMMENTS FROM GERMANY

(23)

In response to the Commission’s decision to initiate the
the German authorities
Article 88(2) procedure,
be
provided
summarised as follows.

information which may

extensive

A. DIRECT AID TO PROJECT PARTNERS OF SIBET

industrial

(24) With regard to direct aid to project partners of
it was the aim of
SIBET, Germany emphasised that
the
carried out with
research projects
collaboration partners to provide an incentive to apply
microelectronics and thereby increase the level of skill
of the collaboration partners through concrete research
projects. Germany submitted lists showing that SIBET
carried out 17 projects at
industrial
collaboration partners
research. For

these projects,

the stage of

can be

research project

A module for processing sensor data was developed
which can perform a variety of functions and has very
small physical dimensions. As a result, new technical
functions
carried out which considerably
improve performance in mechanical engineering. This is
therefore
in which,
an industrial
the technologically
through systematic exploration of
the knowledge obtained can be
innovative functions,
existing mechanical
used to improve
engineering
techniques considerably:
in the machine
for instance,
tool industry, the module can be used to determine the
degree of abrasion of diamond grinding discs and hence
improve their utilisation (the discs are very expensive).
In addition, unlike traditional methods, the electronics
developed mean that various machine components and
controls can be directly linked through the CAN bus.

Aid amounting to DEM 166 000 (EUR 84 874) was
granted to the industrial cooperation partner. The aid
the project costs
intensity corresponded to 50 % of
incurred by the partner.

(7)

See footnote 2.

(8) OJ C 213, 23.7.1996, p. 4.
(9) OJ C 68, 6.3.1996, p. 9.

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(28)

Project 1006:

A new type of control system for CO2 laser welding was
laser power,
developed which, by regulating the
radically improves weld quality. This makes the whole
welding process more efficient. Hitherto, optimum
processing parameters had to be determined empirically
through lengthy trials. The results of the project help
directly to improve both the production process and the
product quality. This is therefore an industrial research
project in which the knowledge obtained by systematic
exploration can be used to improve existing methods of
CO2 laser beam welding considerably. As a rule, a visual
inspection of the processed work used to be necessary,
but this can now be substantially reduced.

Aid amounting to DEM 117 000 (EUR 60 076) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(29)

Project 1008:

for

are

used

enhanced

broadcasting

Radio microphones
the wireless
transmission of high-grade audio signals in TV studios,
televised theatre and concert halls. The transmission
quality of existing analogue FM systems is of VHF-FM
sound
a
standard,
companding system. However, this will no longer be
sufficient for future sound recording requirements (CD
quality). In this industrial research project, a working
model of a pioneering,
completely digitised radio
microphone system was developed, which provided the
basis
technically
series production of
innovative product and hence meant that the knowledge
acquired could be used to improve existing products
considerably.

the

for

by

a

The developed transmission system has not been further
industrial use;
developed to the
rather,
systematic knowledge
and comprehensive, detailed
knowledge has been accumulated by the partners, which
are the basis for further developments.

stage of

Aid amounting to DEM 362 691 (EUR 185 440) was
granted to Sennheiser,
cooperation
the
partner. The aid intensity corresponded to 50 % of the
project costs incurred by the partner.

industrial

With regard to the incentive effect, Germany stated that
the project was technically pioneering at
time.
Sennheiser’s development department could not have
to such a high technical
carried out such a project

that

the

and

support

financial

standard without
the
collaboration with a highly qualified project partner.
Since the cooperation with a young company with little
experience in the market segments presented a risk for
Sennheiser which was difficult to assess (the project was
it would
one of the first ones of the SIBET group),
certainly not have been carried out without the aid. The
risk can also be seen from the fact that the development
took considerably longer than originally envisaged.

(30)

Project 1009:

by
The

semiconductor

or
derived

The aim here was to develop a sensor system for
registering excessive ozone concentrations, which can
be
odour-control
air-disinfection
caused
from a
system was
equipment.
semiconductor gas sensor unit consisting of a new,
a
microstructured
microcontroller circuit and a voltage control
for an
air-disinfection unit. Similar systems are not available on
the market at present. The system for regulating the
ozone concentration is currently used for long-term
measurements in air-conditioning systems. It represents
improvement on commercially available
a substantial
the knowledge obtained from this
systems. Thus
industrial
research project can be used to improve
measuring methods and systems considerably.

sensor,

gas

Aid amounting to DEM 142 500 (EUR 72 859) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(31)

Project 1010:

standard.

communications

In the field of broadband communications technology,
synchronous digital hierarchy (SDH) has become the
In particular,
worldwide
SDH technology makes visual communication (e.g.
videoconferences) and the linking of
local computer
networks possible. The ATM process utilised means that
a broadband ISDN can be introduced which all existing
and future services will make available to network
customers via optical
fibre. Among the other things
developed in this project were key components for an
ATM system. The
research make
results of
considerable improvements in ATM applications and
and
systems possible.
the hardware
software components developed form the basis
for
innovative products in multimedia applications.

instance,

For

the

granted

Aid amounting to DEM 1 822 398,92 (EUR 931 777)
was
industrial
to Ericsson Eurolab,
cooperation partner. The aid intensity corresponded to
50 % of the project costs incurred by the partner.

the

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With regard to the incentive effect Germany stated that,
when the project started and the aid was approved,
Ericsson Telekom GmbH had roughly 185 employees.
The company had been set up as a joint venture
between Ericsson and FUBA, which holds 49 % of the
shares.

beyond the competence of Sartorius in R & D and
therefore did not form part of the normal day-to-day
business of the R & D department. Without aid, the
industrial partner would not have envisaged such a
far-reaching R & D project in this field, since the effort
and the risk would have been too high.

Through the broadly planned research project, both
SIBET and the project partner got involved in an area of
microelectronics which was new to them (deep
submicron). Within the project, the partners primarily
gained expertise which indirectly influenced the further
development activities of the project partners, while the
developed products did not allow for direct industrial
use, but only served to prove, in principle, the feasibility
of the envisaged objectives.

The industrial partner would not have carried out the
project to the stated technological standard and with a
cost share of roughly DEM 3,6 million, had not the aid
amounting to DEM 1,8 million served as a financial
incentive. The project was too remote from the general
day-to-day business of Ericsson Eurolab.

The project resulted in the creation of additional
jobs
for qualified engineers in the R & D field, in particular
in order
the knowledge gained
through the project.

to develop further

(32)

Project 1013:

in order

Companies wishing to establish themselves on the world
weighing-technology market are forced to offer a wide
to provide optimum
range of products
solutions for their many different customers. The aim of
to
the project was, by modularising the electronics,
shorten development
logistical
times
expenditure. By using multichip module technology and
ASIC developments,
it was possible to develop a new
generation of weighing and measuring products. The
knowledge acquired helps to improve existing systems
and methods considerably and can be utilised for the
development of new products in this market segment.

reduce

and

Aid amounting to DEM 679 677,01 (EUR 347 513) was
granted to Sartorius, the industrial cooperation partner.
The aid intensity corresponded to less than 50 % of the
project costs incurred by the partner (DEM 1,4 million).

With regard to the incentive effect Germany stated that,
within the project, basic knowledge for new techniques
(modularisation of electronics, use of multichip modules
for use in electronic scaling
and ASIC-developments)
this project went
was developed. The objective of

For the project, scientists at Sartorius put in roughly
10 000 hours, corresponding to seven man years.

(33)

Project 1014:

The brisk spread of mobile radio is leading to rapid
generational change in terminal equipment and network
hardware (base stations, aerials and repeaters) and, at
the same time, to greater coverage. Repeaters bridge
areas in which no direct radio contact between base and
receiver is possible. The aim of
the project was to
develop a low-cost repeater system using new set-up
and linking techniques. As well as
flexible design,
opportunities to reduce the costs of the entire system in
the development stage and the later production stage
were to be investigated at all operational units. By using
new technologies and development methods,
it was
possible to improve current levels of performance in
these areas substantially. Knowledge of new methods of
developing the necessary components was acquired
from this industrial research project, and the results can
be used for designing new systems.

Aid amounting to DEM 701 664,50 (EUR 358 755) was
granted to the industrial cooperation partner. The aid
the project costs
intensity corresponded to 50 % of
incurred by the partner.

(34)

Project 1015:

this project,

low-maintenance
low-cost,
Under
a
measuring and control
system was developed for
continuously recording water quality in canals. By using
new, smart signal-processing algorithms (fuzzy logic and
artificial neuron networks), the problem of determining
water quality was reduced to magnitudes which were
simple to measure. With this approach, an innovative
method of controlling reservoirs was devised, making
and
possible
avoiding the need for extensions. This means that the
knowledge acquired from this industrial research project
can be used to make considerable improvements in
both
under
construction.

in building costs

substantial

reservoirs

existing

savings

those

and

still

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Aid amounting to DEM 411 615,10 (EUR 210 455) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(35)

Project 1016:

to

sensor

In the automobile components supply industry, sensor
systems with very specific qualities are needed which
are not freely available on the market, or not at suitable
prices. The trend today is clearly towards integrated
sensor and system solutions which can be manufactured
using
semiconductor mass production technology.
Suitable signal transmission techniques and control of
if the sensors are to be
sensor balancing are critical
usable. In the project, a sensor signal amplifier for use
in motor vehicles was developed which could be
adapted
design was
miniaturised to save space. With the module that was
developed, any sensor component can be balanced
quickly, reliably and cheaply using a resistance bridge.
Sensors have previously been balanced using individual
resistances with a narrow tolerance range, which are
subsequently soldered manually into the electronics. By
using the modules and processes developed in this
project, a clear improvement in costs and quality could
be achieved compared with traditional sensor-balancing
methods. The knowledge acquired in this industrial
research project is extremely useful for the optimisation
of existing, and the development of new, procedures.

components;

its

Aid amounting to DEM 666 739 (EUR 340 898) was
granted to Wabco, the industrial cooperation partner.
The aid intensity corresponded to 50 % of the project
costs incurred by the partner.

With regard to the incentive effect, Germany stated that
the project served to develop a method which avoids
the expensive calibration of sensors through use of
intelligent circuits. The results of the research were to
be converted into a functional ASIC model.

the project went

The technological standard of
far
beyond the capabilities of Wabco’s R & D department. It
was the first
time SIBET had entered into such a
technically demanding commitment in the area of the
development of integrated circuits for use in vehicles,
for which a particularly high degree of reliability is
expected due to the additional difficulties resulting from
in-vehicle operation. The high technical risk is evident
from the fact that the ASIC developed on the basis of
the knowledge gained in this project has never been
ready to go into production and has never been used in
a modified or more highly developed form in any of the
company’s products and hence has not been put to any
direct commercial use.

this background it

Against
is clear that, had not a
considerable amount of aid been granted to the
industrial project partner, the project would have been
less ambitious and probably would never have been
finished owing to the difficulties which kept arising
during the course of the project. It follows directly from
this that the knowledge and know-how gained during
the project, important as it is to future developments,
would not have become available until later, if at all.

The project absorbed considerable capacity within the
electronics development department of
the industrial
partner, as is to be expected with skilling measures.

(36)

Project 1019:

the components

integrated circuits during development
The testing of
and before incorporation into the final product
is
becoming increasingly important as far as quality and
costs are concerned. Rapid advances in microelectronics
require the continual
improvement and extension of
tester hardware. The development of test heads which
have to be continually adapted to the increasing
frequencies of
to be tested is an
essential task if competitive microelectronic components
are to be developed and tested in this field.
In this
project, a high-performance test head was developed
and bonding
using modern assembly
methods. Also developed was an integrated circuit
which can quadruple
testers
currently available on the market. The principal users of
the
test head can work with optimised testing
their
procedures and so improve the efficiency of
development and production divisions. Development
times can be shortened and reject rates reduced. Thus
the knowledge acquired from the research process can
be used to go some way towards optimising existing
the
systems. At
methods
requirements associated with an industrial
research
project are fully satisfied.

the performance of

technology

same

time,

and

the

Aid amounting to DEM 423 950 (EUR 216 762) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(37)

Project 1023:

A module which ensures anti-trapping was developed
vehicle window-opening mechanisms,
for motor
especially for windows which close automatically.
In
addition to the anti-trapping function,
the control
module developed makes it possible to determine the
window position by measuring the motor power supply
without an additional sensor system. This results in

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they need an additional

lower unit cost and cheaper installation. Current designs
cannot easily be fitted with an anti-trapping device that
meets all requirements, because their controls (using
relays and mechanical limit switches) are too simple or
because
system.
Consequently, the product developed in this project is a
substantial improvement on existing solutions. As befits
an industrial research project, the experience and results
acquired can be used to improve existing methods
considerably and, at the same time, as a basis for a
completely new technology in the field of motor vehicle
window-operating mechanisms.

sensor

Aid amounting to DEM 549 495,82 (EUR 280 952) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(38)

Project 1024:

intracranial pressure

victims. A pressure

in hydrocephalus
Monitoring
patients
is an essential aspect of neurosurgery, as
regards both post-operative care and the treatment of
accident
sensor with signal
processing was developed to measure the intracranial
pressure between the cerebral membrane and the skull
bone. An implantable
telemetric data and energy
transmission device supplements the sensor system. In
addition, at a further stage,
the telemetric pressure
measuring unit will be fitted with an actively adjustable
valve to allow controlled run-off of the cerebral fluid
into the abdominal cavity. The medical engineering
substantially
product
improves
and
measuring techniques as far as both doctor and patient
are concerned. The knowledge acquired can be used to
improve existing methods of measuring intracranial
pressure considerably and, at the same time, to develop
new medical
the
engineering products;
classification as an industrial research project.

existing monitoring

resulting
and

from this

simplifies

justifies

project

it

Aid amounting to DEM 477 003 (EUR 243 887) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(chips

electronic

components

becoming increasingly important. Multichip modules
and
contain various
sensors), very densely packed on a substrate. The
comparatively high value of an MCM requires not only
function control but also fault diagnosis so that a defect
can be repaired. It is currently possible to test MCMs
only with special solutions. The aim of the project is to
make it possible to test MCMs using available testing
systems and to develop special test methods so as to
reduce testing costs. The availability of the software and
a
mechanical
completely new product field. The industrial research
project
software
components which can supplement commercial testing
systems and which make it economically viable to
change to testing mixed analogue/digital systems. These
can be used to improve existing processes considerably
and, at the same time, as a basis for developing new
processes and systems in this field. Accordingly,
the
research project are
requirements of an industrial
satisfied.

components

developed

hardware

resulted

opens

and

has

up

in

Aid amounting to DEM 236 683,26 (EUR 121 014) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

(40)

Project 1026:

force

flow packers

An electronic unit was developed for controlling filling
processes which use high-speed force flow packers. The
fuzzy control technology makes it possible to regulate
difficult processes. Where
are
installed, the optimum adjustment of the filling process
technology. The
is particularly difficult using current
solution devised in the project made it possible to fill
sacks more quickly, even using different fillers. Quicker,
automatic set-up is also possible when the force flow
packer is initially installed, with the advantage that a
sudden change in the characteristics of the filler can be
recognised, the prescribed weight for filled sacks can be
achieved more successfully and burst
sacks can be
substantially improve the
avoided. The results will
production process
filling
automatic
machines; among other things, this justifies the project’s
classification as an industrial research project.

and existing

(39)

Project 1025:

With the progressive integration of microelectronic
circuits and systems, multichip modules (MCMs) are

Aid amounting to DEM 258 050 (EUR 131 938) was
granted to the industrial cooperation partner. The aid
intensity corresponded to 50 % of
the project costs
incurred by the partner.

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(41)

Project 1027:

The processing of materials by laser will become
increasingly important in many areas of manufacturing
industry. Lasers allow very high processing quality and
speeds. In this project an on-line error-detection system
was developed for cutting and welding metal sheet. It
speeds up processing time considerably and makes a
decisive
The
error-detection system developed can be used to
improve existing laser systems considerably and as an
effective basis for the development of new processes in
this field.

contribution

assurance.

quality

to

by SICAN and SIBET and is divided between the public
service task and the market activities as well. On the
basis of the examination of contracts with third parties,
the study concludes that third parties were billed at least
at full-cost prices.

C. CONSULTANCY SERVICES TO COMPANIES

(46)

Consultancy services to companies were provided free
of charge but in accordance with the de minimis rule.

Aid amounting to DEM 35 261,31 (EUR 18 028) was
granted to VW AG, the industrial cooperation partner.
The aid intensity corresponded to 25 % of the project
costs incurred by the partner. The aid falls under the de
minimis rule (10).

D. AID TO THE SICAN GROUP (11)

(42)

Finally, Germany made clear that the aid to the partners
had not, as asserted at the meeting on 4 December
1997, been granted on the basis of an approved R & D
scheme of the Land of Lower Saxony.

(47) Germany stated that the total amount of aid granted
was DEM 206 million (EUR 105 million), of which
SIBET received DEM 74,5 million (EUR 38 million),
SIAG DEM 104 million (EUR 53 million) and SICAN, as
already indicated, DEM 26,9 million (EUR 14 million).

B. INDIRECT AID TO CUSTOMERS OF SICAN AND SIBET

(43) One reason for the initiation of the procedure was that
Germany had not substantiated its claim that, in so far
they
as SICAN and SIBET pursued market activities,
charged their customers the full cost of their services,
taking into account all aid granted to the group.
In
particular, Germany could not demonstrate that SICAN
had a cost-accounting system enabling it to determine
the relevant costs for each individual project. Doubts
therefore remained as to whether indirect advantages,
which could also be considered State aid, had been
passed on to customers.

(44)

Following the initiation of
the procedure Germany
confirmed that, apart from performing a public service
task, SICAN and SIBET at the same time pursued market
SICAN carried out 793 precompetitive
activities.
development projects under contract
to companies,
while SIBET carried out 233 such projects.

(45) On the basis of

the attribution of costs to different
categories, the study presented by Germany calculates
the costs per productive hour for SICAN employees.
When establishing the costs incurred by SICAN and
SIBET, the depreciation for use of the equipment owned
by SIAG is taken into account as an advantage received

(48) With regard to the SICAN group, Germany stated that
the public funding of SICAN would not constitute State
aid since
carrying out
group, while partly
market-oriented activities, would for the most part fulfil
a task of general public interest.

the

(49)

The task of general public interest can be described
more specifically as follows: while the overall objective
was to provide companies in the region with the skills
needed in order to participate in the JESSI programme,
in
it was proposed to train university graduates
microelectronics in order to enable them to participate
in JESSI and similar programmes. Such training was
provided as of 1993.
It was directed primarily at
postgraduate students, PhD students and students in
trainees were
microelectronics. During the training,
employed by the SICAN group on a short-term basis,
but were not under contract
to a future employer.
Trainees received practical project training, which was
provided by the regular staff members of the SICAN
group, mostly SICAN and SIBET.

(50) NIGAN e. V. was founded in 1993 specifically to recruit
and train trainees (PhD students, students about to take
the
their diplomas, student
further
in
education of
microelectronics. While it was NIGAN that designed and
organised the training programmes for postgraduate
trainees, most of the training, which was done on the
project, was carried out by SICAN and SIBET.

trainees) and to support
scientists
and
engineers

(10) See footnote 9.

(11)

Including potential aid to SIBEG shareholders through the training
of future employees of those shareholders.

L 18/26

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Official Journal of the European Communities

19.1.2001

(51)

The overall number of trainees in the SICAN group was as follows:

1993

1994

1995

1996

1997

1998

Total

No of trainees

209

185

215

360

314

156

1 439

Average period in months

5

5,5

6,3

5,3

5,2

6,3

No of regular staff (posts)

114

103

152

247

205

312

From 1993 until 1998, the total number of trainees in
SICAN was 831, while 435 trainees received training in
SIBET. For SICAN and SIBET alone, this gives a total
number of 1 266 trainees. In addition, a smaller number
of trainees (173) was allocated to other entities in the
group.

(52)

Since the cost-calculation system of SICAN at that time
did not distinguish between costs
incurred in the
fulfilment of the public service task and costs incurred
for market activities, Germany engaged a consultancy
firm to carry out such a distinction retrospectively based
on the documentation provided by the SICAN group.
The costs of
the respective activities were separately
determined and compared with the public funding
received. The years 1993, 1995 and 1998 were
subjected to particularly close scrutiny. In April 1999
Germany submitted a study on the allocation of costs
and the corresponding allocation of the State funding
received.

(53) On the basis of the study’s findings, Germany asserts
that
the public
it can now state positively that all
funding received by the SICAN group was employed in
its entirety for funding the task of general common
interest and thus did not constitute State aid within the
meaning of Article 87(1) of the EC Treaty.

(54)

For the staff members involved in the training activity, a
certain percentage of their working hours was attributed
to providing training. The working hours of trainees
were regarded partly as productive work for the SICAN
group and partly as training.

SICAN and SIBET and was divided between the public
service task and the market activities.

(56) Germany confirmed that, while fulfilling a task of
general common interest, SICAN and SIBET pursued at
the same time market activities. While for SIBET this
market activity was less significant, for SICAN it soon
accounted for the major part of its activities.

(57)

interest,

inasmuch as the SICAN group
In Germany’s view,
carried out a task of general
it has to be
regarded as a public non-profit research and training
establishment.
the industrial research
carried out by SIBET, the results were published and
made available to companies on non-discriminatory
terms, as can be seen from the publication lists and
examples of publications submitted by Germany.

In the case of

(58) Germany concludes that the SICAN group has, for its
non-market activities, to be considered a public research
institute and the public funding received cannot be
classed as State aid within the meaning of Article 87(1)
of the EC Treaty.

(59) At

the Commission’s

request Germany provided
information on any profits made by SIBET. The detailed
calculations show that SIBET did not make any profits.
The results of the group as a whole were balanced or
slightly positive, except for 1995 and 1997 when the
group made a loss.

(55) When establishing the costs incurred by SICAN and
SIBET, the depreciation for use of the equipment owned
by SIAG was taken into account as a benefit received by

(60) Germany submitted lists showing that SIBET carried out
17 projects at the industrial research stage at a total cost
of DEM 43,2 million (EUR 22,09 million). In addition,
it carried out 233 projects at
the precompetitive
development stage with a total contract value of DEM
13,3 million (EUR 6,80 million).

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(61) Germany also submitted a list with titles and contract
values of the 793 precompetitive development projects
carried out by SICAN under contract to companies, the
total contract value being DEM 147 million (EUR 75,16
million).

(62) With regard to the professional future of persons who
had previously received training within the SICAN
group, Germany presented the following information at
the Commission’s request.

In such cases,

(63) Of the 510 engineers newly employed by the SICAN
group between 1991 and 1997, 195 had previously
benefited from skilling measures under the supervision
of NIGAN.
the
employee reflected the professional experience which
the former trainee had acquired during the training
process. Employment did not always directly follow the
training measure. Only in a few cases did the employee
continue to work on the same project as that on which
he had previously been trained.

the initial salary of

(64)

(65)

There has never been a contractual obligation for
NIGAN trainees to work within the SICAN group for a
certain period of time once the training was finished.
Former trainees sought employment according to the
options which the market offered. Therefore, the vast
majority of them joined other companies without any
far as could be established
regional
by Germany,
joined
trainees have
shareholders of SIBEG.

limitation. As

seven former

E. PRIVATISATION OF THE GROUP

In 1998 the public service task was ended and the
private
completely
group was
companies became the shareholders of
the SIBEG
holding company.

privatised.

Four

A. DIRECT AID TO PROJECT PARTNERS OF SIBET

(67) With regard to aid which was channelled through the
SICAN group to project partners of SIBET,
the
the SICAN group was
Commission concluded that
managing a scheme on behalf of
the State which
consisted in financing industrial research projects. The
aid granted to the project partners of SIBET constitutes
State aid in that
the
recipients in comparison with competitors. The aid
thereby has a potential effect on trade between Member
States. It falls under Article 87(1) of the EC Treaty.

it strengthens the position of

(68)

(69)

It is obvious that no derogation provided for in Article
87(2) and (3) other than Article 87(3)(c) under research
and development can be applicable in the present case.
The aid does not fall under Article 87(2). It is neither
regional State aid, nor aid to promote the execution of
an important project of common European interest or
to remedy a serious disturbance in the economy of a
Member State or to facilitate the development of certain
economic activities (except research and development)
or to promote culture and heritage conservation. In any
case,
invoked these
derogations.

the German Government never

The aid might therefore qualify for exemption under
Article 87(3)(c) of the EC Treaty if all the conditions of
the Community framework for State aid for research
and development (12) are met. On the basis of
the
information provided by Germany
the
following
initiation of the procedure, the Commission concludes,
however, that this is not the case for all the projects in
the
question. With regard to the eligible costs of
projects,
the
that
the R & D framework are met. With
conditions of
regard to the research stage,
the resulting maximum
permissible aid intensity and the incentive effect, the
following may be said about each individual project.

the Commission has no doubts

VI. ASSESSMENT

(70)

Project 1005:

(66) As

already indicated,

the procedure was

initiated
because there was insufficient information on which to
base a proper assessment as to whether the aid in
question was compatible with the applicable State aid
rules. The
from
Germany following the initiation of the procedure now
leads to the following assessment.

information obtained

additional

With regard to project 1005, the Commission concludes
that a part of the project included the development of a
data-treatment module which can be used industrially
for mechanical engineering applications. The project
therefore goes beyond precompetitive development (13).

(12) See footnote 6.
(13) See Annex I, third indent, of the abovementioned framework.

L 18/28

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Official Journal of the European Communities

19.1.2001

Consequently, the project does not fall within the stage
of industrial research (14) and cannot even be regarded
as precompetitive development. The granting of the aid
was thus incompatible with the common market.

(71)

Project 1006:

The German authorities have failed to demonstrate that
the project is effectively industrial research. Indeed, in
the project description it is stated that the results of the
project contributed directly to the improvement of
(cid:145)existing
industrial processes
laser-beam welding(cid:146). The project
methods of CO2
therefore goes up to the point where it can be used
industrially. The Commission finds therefore that the
stage of precompetitive
project goes beyond the
development (15).

and in particular of

Consequently, the project does not fall within the stage
of industrial research (16) and cannot even be regarded
as precompetitive development. The granting of the aid
was thus incompatible with the common market.

(72)

Project 1008:

(cid:145)a working model of

This project went up to the point where, according to
the German authorities,
a
pioneering,
completely digitised radio microphone
system was developed, which provided the basis for the
series production of
innovative
product(cid:146). It thus appears that the results of the project
can be almost directly used for industrial production.
The Commission regards the project as falling within
the stage of precompetitive development. Accordingly,
the aid intensity of 50 % was not justified (17).

technologically

a

a
It

leading producer of high-quality
is
Sennheiser
microphones.
started developing and marketing
wireless microphones for TV and radio studios back in
the 1950s (18). In a context of continuing changeover
from analogue technologies to digital technologies (19), it

(14) See Annex I, second indent, of the abovementioned framework.
(15) See Annex I, third indent, of the abovementioned framework.
(16) See Annex I, second indent, of the abovementioned framework.
(17) See point 5.5,
framework.

second paragraph, of

the

abovementioned

(cid:145)Digital broadcasting is

(18) See http://www.sennheiser.com/Image/im1bX001.htm.
(19) See www.infowin.org/ACTS/ANALYSYS/PRODUCTS/THEMATIC/
to displace
MMB/02/digital.htm:
in the coming
analogue broadcasting,
years(cid:146) (copyright (cid:145)ACTS Information Window(cid:146) (cid:151) 1997; published
on the website of the Advanced Communications Technology and
Services programme, known simply as ACTS, one of the specific
programmes of the (cid:145)Fourth Framework Programme of European
Community activities in the field of research and technology
development and demonstration (1994 to 1998)(cid:146)).

for both radio and TV,

set

a

project

research

digitised

involving

is highly probable that Sennheiser would have embarked
radio
on
microphone systems even without State aid. Against this
background the Commission takes the view that the aid
was not necessary as an incentive to the recipient to
the project (20). Nor can the partnership
carry out
between Sennheiser and SIBET justify Sennheiser’s not
carrying out the research project unaided. Pursuant to
point 6.5 of the R & D framework the Commission
attributes particular importance to proof of an incentive
individual,
effect
close-to-the-market
research projects undertaken by
large firms, as is the case here.

assessing

when

aid

for

The Commission therefore concludes that the incentive
effect of the aid has not been suitably proven and the
granting of the aid was accordingly incompatible with
the common market.

(73)

Project 1009:

The Commission concludes that the project falls within
the definition of industrial research (21). Since the aid
was granted to an SME, the Commission assumes, as it
may pursuant to point 6.4 of the framework, that the
aid provided a necessary incentive for
the firm to
undertake the research.

The granting of the aid was thus compatible with the
common market.

(74)

Project 1010:

The Commission concludes that the project falls within
the definition of industrial research (22). The results of
the project have been suitably published, and the
incentive effect has been reasonably justified. The
granting of
thus compatible with the
common market.

the aid was

(75)

Project 1013:

The Commission concludes that the project included the
development of new scaling and weighing devices and
therefore went beyond the stage of precompetitive
development (23). The aid is thus incompatible with the
common market.

(20) See point 6.3 of the abovementioned framework.
(21) See Annex I, second indent, of the abovementioned framework.
(22) See Annex I, second indent, of the abovementioned framework.
(23) See Annex I, third indent, of the abovementioned framework.

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(76)

Project 1014:

effect has been reasonably justified (30). The aid can
therefore be considered compatible with the common
market.

The Commission concludes that
the project was not
effectively industrial research. In its view, it included the
development of a commercial product
((cid:145)a low-cost
repeater system(cid:146)) and therefore went beyond the stage of
development (24). The
thus
precompetitive
incompatible with the common market.

aid

is

(77)

Project 1015:

(79)

Project 1019:

The Commission concludes that the project falls within
the definition of industrial research (31). Since the aid
was granted to an SME, the Commission assumes, as it
may pursuant to point 6.4 of the framework, that the
the firm to
aid provided a necessary incentive for
undertake the research. The granting of the aid can thus
be considered compatible with the common market.

the project was not
The Commission concludes that
effectively industrial research. In particular, it does not
appear that new knowledge that could meaningfully be
used for the development of new products, processes or
services was acquired during the project. The aid
intensity of 50 % was therefore not justified (25).

(80)

Project 1023:

However, the project encompasses the development of
system based on new and
an innovative
relatively complex signal-processing techniques. The
Commission therefore concludes that the aid qualifies as
precompetitive development (26).

control

Since the recipient was an SME,
it would have been
permissible to grant aid amounting to 35 % of project
costs (25 % basic aid intensity (27) plus a 10 percentage
points bonus for SMEs (28)). Since the aid was granted to
an SME, the Commission assumes, as it may pursuant to
point 6.4 of the framework, that the aid provided a
the firm to undertake the
necessary incentive for
research.

The aid amount exceeding an aid intensity of 35 % is
incompatible with the common market.

that

anti-trapping module

the project was
The Commission concludes
research: on the contrary,
not effectively industrial
an
vehicle
window-opening mechanisms has been developed up to
a stage which appears to be very close to market
introduction. Consequently, the activity carried on under
the project does not fall within the definition of R & D.
The granting of the aid to the recipient was therefore
incompatible with the common market.

for motor

(81)

Project 1024:

The Commission concludes that the project falls within
the definition of industrial research (32). Since the aid
was granted to an SME, the Commission assumes, as it
may pursuant to point 6.4 of the framework, that the
aid provided a necessary incentive for
the firm to
undertake the research. The aid can thus be considered
compatible with the common market.

(78)

Project 1016:

(82)

Project 1025:

The Commission concludes that the project falls within
the definition of industrial research (29). The incentive

(24) See Annex I, third indent, of the abovementioned framework.
(25) See point 5.5 of the abovementioned framework.
(26) See annex I, third indent, of the abovementioned framework.
(27) See point 5.5 of the abovementioned framework.
(28) See point 5.10.1 of the abovementioned framework.
(29) See Annex I, second indent, of the abovementioned framework

The Commission concludes that the project falls within
the definition of industrial research. Since the aid was
granted to an SME, the Commission assumes, as it may
pursuant to point 6.4 of the framework, that the aid
provided a necessary incentive for the firm to undertake
thus
research. The granting of
the
compatible with the common market.

aid was

the

(30) See point 6 of the abovementioned framework.
(31) See Annex I, second indent, of the abovementioned framework.
(32) See Annex I, second indent, of the abovementioned framework.

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Official Journal of the European Communities

19.1.2001

(83)

Project 1026:

C. CONSULTANCY SERVICES TO COMPANIES

The Commission concludes that
the project was not
effectively industrial research. In particular, it does not
appear that new knowledge that could be useful for the
development of new products, processes or services was
acquired during the project. The aid intensity of 50 %
was therefore not justified (33).

(86)

These services, provided in accordance with the de
minimis rule, did not have to be notified.

However,
the project encompasses the design of an
innovative control system based on new and relatively
logic(cid:146). The
complex
Commission therefore concludes that the aid qualifies as
precompetitive development (34).

techniques,

(cid:145)fuzzy

such

as

Since the recipient was an SME,
it would have been
permissible to grant aid amounting to 35 % of project
costs (25 % basic aid intensity (35) plus a 10 percentage
points bonus for SMEs (36)). Since the aid was granted to
an SME, the Commission assumes, as it may pursuant to
point 6.4 of the framework, that the aid provided a
necessary incentive for
the firm to undertake the
research.

The aid amount exceeding 35 % is incompatible with
the common market.

D. AID TO THE SICAN GROUP (38)

(87) While Germany had,

from the outset, claimed that
SICAN had been set up to fulfil a task of general public
interest,
this task was originally described as that of
supporting and providing with skills Lower Saxony
enterprises by carrying out research projects together
with or for them. No information describing in concrete
terms this task of general public interest was provided
which would have explained more precisely which
additional activities, apart from the cooperation as a
research partner, had been triggered by that task and
had been carried out with a view to fulfilling that task.

(88) On the basis of the detailed information subsequently
provided, the Commission concludes that the activities
of the SICAN group did in fact comprise what may be
regarded in part as a task carried out in the general
public interest.

(84)

Project 1027:

The aid was granted in accordance with the de minimis
rule and was therefore not subject to notification (37).

(89)

short-term employees,

In particular as regards the training provided to a large
number of
the Commission
considers that it would not have been in the commercial
interest of a firm to train so many university graduates
who stayed with the company for an average period of
some six months only. Following the training period, it
the trainees should leave SICAN
was intended that
again. Germany indicated that a number of
former
trainees, 195, worked within the SICAN group after
finishing their training. While this may represent a
considerable proportion of engineers newly employed
by the SICAN group, the Commission maintains that
the number of trainees was, in any case, far too high in
comparison with the permanent SICAN personnel for
the
selection
mechanism for future employees which would have
provided an indirect advantage for the SICAN group (39).

considered a useful

training to be

(90)

In any case, the starting salary of the employee reflected
the professional experience which the former trainee
had acquired in the training process and in most cases

(38)

Including potential aid to SIBEG shareholders through the training
of future employees of those shareholders.

(39) See paragraph 51.

B. INDIRECT AID TO CUSTOMERS OF SICAN AND SIBET

(85) On the basis of the new information in its possession,
the Commission concludes that no indirect aid was
transferred to customers of SICAN or SIBET, but that
these customers were billed at least at full-cost prices,
whereby not only the direct funding but also all indirect
advantages
received through SIAG were taken into
account in the underlying retrospective cost calculation.

(33) See point 5.5 of the abovementioned framework.
(34) See Annex I, third indent, of the abovementioned framework.
(35) See point 5.5 of the abovementioned framework.
(36) See point 5.10.1 of the abovementioned framework.
(37) See Commission notice on the de minimis rule (footnote 10).

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contract

the employee did not continue to work on the project
on which he had been trained. Since at the time of the
training trainees were not yet under
to
microelectronics
the Commission furthermore
firms,
concludes that the training programme was not carried
out with the ultimate aim of finding suitable employees
for specific firms, in particular those holding shares in
SIBEG. This conclusion is borne out by the fact that it
could only be established that seven former trainees
joined shareholders of SIBEG at a later stage. From the
fact that the vast majority of trainees joined employers
without any regional
limitation it can furthermore be
concluded that the option to employ former trainees did
not result in a particular benefit for companies in Lower
Saxony.

in principle the
It can therefore be concluded that
and administrative
training and the organisational
activities connected with it were carried out
in the
general public interest and did not form part of the
economic activities of SICAN. As far as this activity is
concerned, the SICAN group functioned like a training
centre and did not pursue a market activity. It follows
that, as far as public funding was used to finance the
carrying-out of the task of general public interest,
it
does not constitute State aid.

Since the SICAN group did not have a cost-accounting
system distinguishing between costs incurred in fulfilling
this task of general public interest and costs incurred for
market activities, the additional question arises whether
the necessary classification of tasks as falling into one or
other category can now be done retrospectively. In the
Commission’s view, this cannot be ruled out per se. The
method applied by the consultancy firm to make such a
distinction retrospectively is acceptable. The detailed
figures presented show that
incurred in
carrying out the public service task did not exceed the
funding received. The Commission therefore concludes
that the funding of the activity carried out in the public
the
interest does not constitute State aid and that
market activities of the SICAN group were not financed
through State aid.

the costs

(91)

(92)

HAS ADOPTED THIS DECISION:

Article 1

The aid granted to industrial project partners of SIBET

1.
constitutes State aid. This aid was granted unlawfully.

2.
The aid which Germany granted to industrial project
partners of SIBET is compatible with the common market as
far as projects 1009, 1010, 1016, 1019, 1024 and 1025 are
concerned.

For

the following projects,

3.
the aid which Germany
granted to industrial project partners of SIBET is incompatible
with the common market:

Project 1005: aid amounting to DEM 166 000

Project 1006: aid amounting to DEM 117 500

Project 1008: aid amounting to DEM 362 691

Project 1013: aid amounting to DEM 679 677,01

Project 1014: aid amounting to DEM 701 664,50

Project 1023: aid amounting to DEM 549 495,82

For project 1015 the aid amount exceeding an aid intensity of
35 % (DEM 123 484,53)
is incompatible with the common
market.

For project 1026 the aid amount exceeding an aid intensity of
35 % (DEM 85 515) is incompatible with the common market.

Article 2

The measure which Germany implemented in favour of the
SICAN group does not constitute State aid within the meaning
of Article 87(1) of the EC Treaty.

VII. CONCLUSIONS

Article 3

(93)

The Commission finds that Germany has implemented
the aid in question in infringement of Article 88(3) of
the Treaty,

Germany shall

1.
take all necessary measures to recover
from the recipients the aid referred to in Article 1(3) and
unlawfully made available to them.

L 18/32

EN

Official Journal of the European Communities

19.1.2001

Recovery

shall be

effected without delay

2.
and in
accordance with the procedures of national law provided that
they allow the immediate and effective execution of
the
decision. The aid to be recovered shall include interest from
the date on which it was at the disposal of the recipients until
the date of its recovery. Interest shall be calculated on the basis
of the reference rate used for calculating the grant-equivalent
of regional aid.

Article 5

This Decision is addressed to the Federal Republic of Germany.

Article 4

Done at Brussels, 26 July 2000.

Germany shall inform the Commission, within two months of
notification of this Decision, of the measures taken to comply
with it.

For the Commission

Pedro SOLBES MIRA

Member of the Commission