Information from the Commission – Community guidelines for State aid for advertising of products listed in Annex I to the EC Treaty and of certain non-Annex I products
Date: 2001-09-12
Institutions: European Commission
Subjects: State aid, advertising, agricultural product

12.9.2001

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Community guidelines for State aid for advertising of products listed in Annex I to the EC Treaty
and of certain non-Annex I products

(2001/C 252/03)

1. Introduction

1.

through direct

In practically all the Member States the authorities help to
finance the promotion and advertising of products listed in
to the Treaty and of certain non-Annex I
Annex I
financial contributions
products, either
from their budgets or using government
resources
including parafiscal charges or compulsory contributions.
Providing certain conditions are met,
the Commission
takes a favourable view of such activities, since they
facilitate the development of economic activities in the
agricultural sector and the achievement of the objectives
of the common agricultural policy.

5. The experience acquired since 1987 has shown that it is
necessary to extend the definition of the concept of adver-
tising in the two following respects:

(a)

for example, at

In practice, advertising using the media is frequently
combined with other activities which do not use the
media,
the point of sale, which is
intended to reinforce the message conveyed via the
media. Similarly,
large-scale activities undertaken at
the point of sale to the consumer may have similar
effects on competition to advertising using the media.

2. Nevertheless, public intervention of this kind in the free
play of the market may, by favouring certain firms or
trade
certain products, distort competition and affect
between Member States. The Commission therefore takes
the view that such aid should have a framework which is
as clear and specific as possible. To this end,
the
Commission issued in 1986 a communication concerning
in the promotion of agriculture and
State involvement
fisheries products (1), and in 1987 a framework for
national aid for the advertising of agricultural products
to the EC
and certain products not
(hereinafter
excluding
Treaty,
referred to as (cid:145)the advertising framework(cid:146)). Taking into
in product
account
the experience
information and taking into account
acquired
in
since
is
Community law,
now necessary to clarify certain aspects of the guidance
given in respect of State aid for advertising.

1987
the
the Commission considers that

the increasing consumer

listed in Annex I

developments

products (2)

fisheries

interest

and

it

(b) In addition to advertising which is addressed to the
consumer, it is also necessary to take account of adver-
tising which is addressed to economic operators, for
retail
example
distributors,
restaurants, hotels and other catering
establishments.

processors, wholesale

food

or

the
6. In the light of
Commission will
these guidelines
apply the definition of advertising referred to in point 7.

the considerations
for

the purpose of

in point 5,

7.

(cid:145)Advertising(cid:146) is defined as any operation which is designed
to induce economic operators or consumers to buy the
all material which is
relevant product.
distributed direct
to consumers for the same purpose,
including advertising activities aimed at consumers at the
point of sale.

includes

It

3. The Member States were consulted on these changes at
meetings of the working group (cid:145)Conditions of competition
in agriculture(cid:146) on 13 April 1999, 26 and 27 October 1999
and 27 April 2001.

2. Scope

4. The advertising framework apples to advertising, defined
as any operation using the media (such as press, radio, TV
or posters) which is designed to induce consumers to buy
the relevant product. It excludes from its scope promotion
operations in the broader sense, such as the dissemination
to the general public of scientific knowledge, the organi-
sation of trade fairs or exhibitions, participation in these
including surveys
and similar public relations exercises,
and market research.

8. On the other hand, promotion operations as defined as the
dissemination to the general public of scientific knowledge,
the organisation of trade fairs or exhibitions, participation
including
in these and similar public relations exercises,
surveys and market research, are not considered as adver-
tising. State aid for such promotion in the broader sense is
subject to points 13 and 14 of the Community guidelines
for State aid in the agriculture sector (3) or, as far as fishery
products are concerned, point 2.1.4 of the guidelines for
the examination of State aid to fisheries and acqua-
culture (4).

9. These guidelines concern the advertising of the products
listed in Annex I to the Treaty as well as the advertising of
non-Annex I products, which consist preponderantly of
products listed in Annex I (in particular milk products,
cereals, sugar and ethyl alcohol) in a processed form (e.g.

(1) OJ C 272, 28.10.1986, p. 3.
(2) OJ C 302, 12.11.1987, p. 6.

(3) OJ C 28, 1.2.2000, p. 2.
(4) OJ C 19, 20.1.2001, p. 7.

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fruit yoghurt, milk-powder preparations with cocoa,
butter/vegetable fat mixtures, pastry products, confec-
tionery, and spirituous beverages) within the Community.
These guidelines also concern the advertising for fisheries
products within the Community. These products will be
hereinafter referred to as (cid:145)agricultural and other products(cid:146).
However, these guidelines are without prejudice to the
application of the provisions set out in Council Regulation
(EC) No 2792/1999 of 17 December 1999 laying down the
detailed rules and arrangements regarding Community
structural assistance in the fisheries sector (5) and in the
guidelines for the examination of State aid to fisheries and
aquaculture. They shall apply without prejudice to the
State aid rules applicable to non-Annex I products.

3. General principles for the assessment of State aid for
the advertising of agricultural and other products

10. The general prohibition on State aid contained in Article
87(1) of the Treaty is only applicable if the publicly funded
advertising distorts or threatens to distort competition by
favouring certain undertakings or
the production of
certain goods. Where such publicly funded advertising
activities refer to the national or regional origin of the
products
favours
certain products and therefore Article 87(1) may apply.

concerned,

advertising

clearly

the

11. However, the prohibition on State aid in Article 87(1) of
the Treaty is not absolute. Aid for the advertising of agri-
cultural and other products may be intended to make good
the damage caused by natural disasters or exceptional
occurrences and therefore fall within the scope of
the
derogation provided for by Article 87(2)(b) of the Treaty.
However, usually State aid for the advertising of agri-
cultural and other products will be intended to facilitate
the development of certain economic activities or of
certain economic areas within the meaning of Article
87(3)(c) of the Treaty. In view of their beneficial effects,
these aid measures may be authorised provided that they
do not adversely affect trading conditions to an extent
contrary to the common interest.

12. Normally, producers and traders would be expected to bear
the costs of advertising themselves, as part of their normal
economic activities. Therefore, if aid granted for the adver-
tising of agricultural and other products are not to be
compatible with the
regarded as operating aid but
the Treaty,
common market under Article 87(3)(c) of
they should not
to an extent
contrary to the common interest (negative criteria), and
should facilitate the development of certain economic
activities or of certain economic areas (positive criteria).

interfere with trade

(5) OJ L 337, 30.12.1999, p. 10.

13. State aid must comply with the Community’s international
obligations, which in the case of agriculture are specified
in the Agreement on Agriculture (WTO-GATT 1994) (6).

14. Having regard to Article 152 of

the Treaty on public
health and Article 153 on consumer protection,
the
Commission suggests that advertising for particular agri-
cultural and other products may, where appropriate,
contain a reference of a general nature pointing to the
importance of a varied and balanced diet.

15. Since aid which is considered incompatible with the
common interest in accordance with the negative criteria
described in point 3.1 can never be authorised, it is appro-
priate to assess each case of aid in the light of
these
negative criteria first.

3.1. Negative criteria

16. By definition, State aid for the advertising of agricultural
and other products may distort or threaten to distort
competition within the common market, within the
meaning of Article 87(1) of the Treaty, in that it favours
the producers of the products covered by the advertising
activities concerned. In accordance with Article 87(3)(c) of
the Treaty such aid may be considered compatible with the
common market in so far as they do not adversely affect
trading interests to an extent which is contrary to the
common interest, due
the
objectives of the common agricultural policy as referred
to in Article 39 of the Treaty.

account being taken of

17. Moreover, the discretion conferred on the Commission by
Article 88 of the Treaty does not permit the Commission
to authorise Member States to derogate from provisions of
Community law (Treaty articles and secondary Community
legislation) other than those relating to the application of
Article 87(l) of the Treaty (7).

3.1.1. Aid for campaigns contrary to Article 28 of the Treaty

the Treaty

18. National aid for an advertising campaign which infringes
quantitative
Article 28 of
restrictions on imports and all measures having equivalent
effect between Member States cannot in any circumstances
be considered compatible with the common market within
the Treaty. The
the meaning of Article 87(3)(c) of
from the
Commission will

therefore seek assurances

prohibiting

(6) OJ L 336, 23.12.1994, p. 22.
(7) Judgment of

the Court of First

Instance in Case T-184/97 BP

Chemicals Ltd v Commission [2000] ECR II-3145, paragraph 55.

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Justice of

Member State concerned that the principles as described in
point 19 and as derived from the jurisprudence of the
Court of
the European Communities will be
respected. In case of doubt, the Commission will request
samples or mock-ups of the advertising material concerned
before
the
Commission will require the Member State concerned to
submit an annual report containing information about the
activities undertaken during the previous year (see point
6.2).

aid scheme. Furthermore,

approving the

19. The following are forms of advertising which are clearly
not open to objection under Article 28 of the Treaty:

(a) advertising campaigns organised directly or indirectly
by one Member State on the market of another
Member State;

(b) advertising campaigns organised on the home market
of a Member State which advertise the product in a
purely generic manner making no reference what-
soever to its national origin;

of

typical

national

(c) campaigns on the home market promoting specific
qualities or varieties of products even though they
are
are
campaigns which make no specific references to the
national origin of the product other than which may
be evident from the references made to the qualities or
varieties concerned or to the normal designation of the
product.

production;

these

20. The following are forms of advertising which clearly

infringe Article 28 of the Treaty:

(a) advertising which advises consumers to buy national
products solely because of their national origin;

from other Member

(b) campaigns intended to discourage the purchase of
products
States or which
disparage those products in the eyes of consumers
(negative advertising); positive statements about a
Member State’s home product should not be phrased
in such a way as to imply that other Member State’s
products are necessarily inferior.

21. Some advertising on a Member State’s home market may,
because of the references made to the national origin of
the products, and unless certain restraints are observed, be
open to objection under Article 28 of the Treaty.

22. Advertising drawing attention to the varieties or qualities
of products produced within a Member State frequently
draws attention to the national origin of the products,
even though those products and their qualities are
similar
If
undue emphasis is placed on the national origin of the
product in such advertising there is a danger of breach
of Article 28 of the Treaty. The Commission therefore

to those of products produced elsewhere.

requests Member States to ensure particularly that point
23 is strictly respected.

a

struck between references

23. Identification of the producing country by word or by
reasonable
symbol may be made providing that
balance is
to, on the one
hand, qualities and varieties of the product and, on the
other hand, its national origin. The references to national
origin should be subsidiary to the main message put over
to consumers by the campaign and should not consitute
the principal reason why consumers are being advised to
buy the product.

24. Certain advertising mentioning the national origin of agri-
cultural and other products may, even though they respect
the criteria referred to in points 22 and 23, nevertheless
infringe Article 28 of
they reflect a
considered intention of a Member State to substitute
domestic products
imported from other
Member States (8).

the Treaty if

for products

3.1.2. Aid for campaigns which contravene secondary Community

legislation

its

laid

content

25. National aid for an advertising campaign which by virtue
of
down by
infringes provisions
Community secondary legislation cannot be considered
as compatible with the common market within the
meaning of Article 87(3)(c) of the Treaty. Therefore the
Commission could not authorise aid for advertising
which would infringe provisions laid down by specific
Community legislation, for example the specific labelling
rules which have been laid down for the wine, dairy
products, egg and poultry sectors.

seek assurances

26. Publicly funded advertising campaigns must also comply
with the general rules applying to all advertising activities
conducted within the Community. The Commission will
any publicly funded
therefore
that
foodstuffs respects the
campaign for the advertising of
provisions of Article 2 of Directive 2000/13/EC of the
European Parliament and of
the Council of 20 March
2000 on the approximation of the laws of the Member
States relating to labelling, presentation and advertising of
foodstuffs (9), which provides
labelling and
methods used,
including promotion and advertising of
foodstuffs, must not be such as could mislead the
purchaser to a material degree, particularly:

that

the

(cid:145)(a) as to the characteristics of
as

in
particular,
identity, properties,
composition, quantity, durability, origin or prov-
enance, method of manufacture or production;

the foodstuff and,

to its nature,

(8) Judgment of the Court of Justice in Case 249/81, Commission v

Ireland [1982] ECR 4005, at paragraph 23.

(9) OJ L 109, 6.5.2000, p. 29.

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(b) by attributing to the foodstuff effects or properties

which it does not possess;

for the derogation under Article 87(3)(c) of the Treaty,
such aid must also facilitate the development of certain
economic activities or of certain economic areas.

(c) by suggesting that

the foodstuff possesses

characteristics when in fact all
possess such characteristics(cid:146).

similar

special
foodstuffs

27. Furthermore,

in accordance with Article 2 of Directive
2000/13/EC, subject to the rules applicable to foodstuffs
for particular nutritional uses, promotion or advertising
the property of
may not attribute to any foodstuff
preventing, treating or curing a human disease, or refer
to such properties.

28. In addition,

the Commission will verify that publicly
campaigns undertaken in the
subsidised advertising
Member
co-financed
compatible with
are
campaigns which are being undertaken at Community
level.

States

3.1.3. Aid for advertising related to particular firms

29. The common interest can in no circumstances be advanced
as a justification for aid for advertising relating directly to
the products of one or more particular firm or firms. Such
the
aid presents an immediate risk of a distortion of
conditions of
firms
receiving the aid, and provide no lasting benefits for the
development of the sector as a whole. They must therefore
be considered to be nothing more than operating aid, and
as such incompatible with the common market.

competition in favour of

the

30. Where

the

in order

is entrusted to private firms,

conduct of publicly financed advertising
activities
to
exclude the possibility of aid to the firms carrying out
the campaigns,
in all cases seek
the Commission will
assurances that the choice of the private firm concerned
has been made on market principles, in a non-discrimi-
native way, where necessary using tendering procedures
which are in accordance with Community law, and in
particular with case-law (10) using a degree of advertising
sufficient to enable the services market to be opened up to
procurement
competition
procedures to be reviewed.

impartiality

and

the

of

3.2. Positive criteria

31. The absence of any factor contrary to the public interest is
not of itself sufficient for the Commission to consider aid
for the advertising of agricultural and other products as
compatible with the common market. In order to qualify

32. This positive condition is considered to be met provided
the

the subsidised advertising concerns any of

that
following:

(cid:151) surplus agricultural products or underexploited species,

(cid:151) new products or

replacement products not yet

in

surplus,

(cid:151) high-quality products, including products produced or
obtained using environmentally friendly production or
catchment methods, such as products from organic
farming,

(cid:151) development of certain regions,

(cid:151) development of small and medium sized undertakings
(SMEs) as defined by Commission Regulation (EC) No
70/2001 of 12 January 2001 on the application of
Articles 87 and 88 of the EC Treaty to State aid to
small and medium-sized enterprises (11),

(cid:151) projects

are

that

by organisations
implemented
officially recognised within the meaning of Council
Regulation (EC) No 104/2000 of 17 December 1999
on the common organisation of the markets in fishery
and aquaculture products (12),

(cid:151) projects that are jointly implemented by producer
the fishery

organisations or other organisations of
sector recognised by national authorities.

33. The notification from the Member State should clearly
state, by referring to one of
the items mentioned in
point 32, why a particular aid scheme, or aid for a
specific campaign may be considered in the common
interest within the meaning of Article 87(3)(c) of
the
Treaty, having regard to the specific guidance given in
section 4.

4. Application of section 3 to particular types of adver-

tising activities

34. Experience has shown that the application of the negative
and positive criteria has created particular difficulties in
two areas, namely as regards advertising of
(regional)
origin, and advertising of quality products. Therefore, the
Commission’s approach in these two areas is explained in
detail in this section.

(10) Judgment of the Court of Justice in Case C-324/98 Teleaustria
Verlags GmbH v Telekom Austria AG [2000] ECR I-10745.

(11) OJ L 10, 13.1.2001, p. 33.
(12) OJ L 17, 21.1.2000, p. 22.

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4.1. Advertising of products of a particular Member State or

region where origin is (part of) the message

Advertising where origin is the primary message

therefore be contrary to the common interest. This would
not, however, be the case for advertising campaigns which
are aimed at visitors to the Member State or region, and
which encourage them to try local products, and possibly
encourage them to visit local production facilities.

35. Article 28 of the Treaty states that quantitative restrictions
on imports and all measures having equivalent effect shall
be prohibited between Member States. Advertising of
home-grown products by a Member State which is
aimed at domestic consumption is considered as such an
equivalent measure as
is
consumption of
intended
home-grown products in place of
the consumption of
imported products.

the measure may lead, or

to favour

to lead,

the

36. However, advertising campaigns that are undertaken with
a view to introducing consumers to the agricultural and
other products of a particular Member State or region do
not necessarily have to have such an effect. Sometimes
such campaigns concern a single category of products,
they may
such as wine, cheese or beer. Sometimes
concern a wide range of agricultural and other products
produced in the Member State or region concerned, for
example through the organisation of (cid:145)food weeks(cid:146) in which
consumers in one Member State are encouraged to try
products from another Member State. In addition to adver-
tising, such campaigns may include other measures, for
example the organisation of
for
consumers or professionals working in the food and
catering sectors.

free tasting sessions

37. The Commission considers that one of the major benefits
of the realisation of the internal market in the agricultural
and foodstuffs sector has been to provide consumers with
access to the very wide range of products produced in the
Member States in accordance with different practices and
encourage
traditions. Advertising
consumers to try these different products benefit
the
internal market and contribute to the development of
the agricultural sector. Therefore, despite the fact
that
the primary focus of such campaigns is inevitably on the
national or regional origin of the products concerned, the
Commission takes a favourable view of them provided that
certain conditions are met.

campaigns which

38. The objective of such campaigns should be to introduce
consumers to products with which they are not familiar.
the campaign should be
Therefore, as a general rule,
undertaken outside the Member State or region in which
the agricultural and other products are produced. Unless
appropriate explanations can be provided to suggest the
contrary, publicly subsidised campaigns focused on the
origin of the products and aimed at consumers residing
in the Member State or region of production, who may be
presumed to be familiar with the products concerned,
would appear
intended to reinforce possible
existing preferences to buy local products, and would

to be

the objective

39. It is acceptable for such campaigns to include information
the products
characteristics of
about
concerned, such as the ingredients used,
the taste and
texture of the product, or the method of production, e.g.
animal welfare
biological production.
However, they should not, subject to the guidance given
in point 4.2, include subjective claims about the quality of
the products. In essence, the focus of such a campaign
should be limited to encouraging consumers or the trade
to try the product, and leaving it to them to form a
judgment as to its quality.

standards

or

Advertising where origin is the secondary message

40. In line with point 3.1.1, advertising which mentions the
(regional) origin of the product as a subsidiary message
would not infringe Article 28 of the Treaty.

41. To assess whether

the origin is

importance of

the Commission will

indeed a subsidiary
the
message,
including
overall
pictures and general presentation, referring to origin and
the importance of
text and/or symbol referring to the
unique selling point of the advertisement, i.e. the part of
the advertising message which does not focus on origin.

take into account
symbol,

text and/or

Advertising concerning traceability systems

42. Regulation (EC) No 1760/2000 of the European Parliament
and of the Council of 17 July 2000 establishing a system
for the identification and registration of bovine animals
and regarding the labelling of beef and beef products
and repealing Council Regulation (EC) No 820/97 (13) has
improved the transparency of
the
production and marketing of beef and beef products.
Through that regulation Community legislation has made
some products.
traceability of origin obligatory for
Member
advertising
States may want
campaigns explaining the mechanisms of such a system
to the general public.

the conditions

finance

for

to

43. A general advertising campaign explaining the fact that
traceability has become obligatory and/or explaining how
such a system is managed would not emphasise a
is
particular origin. Therefore, such a campaign (if
State aid at all) would comply with Article 28 of
the
Treaty.

it

(13) OJ L 204, 11.8.2000, p. 1.

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the relevant

they simply meet

44. However, claims that products of a certain origin are
special because of the existence of a traceability system,
when in fact
legislative
requirements applicable to the marketing of all similar
products concerned, may mislead the consumer, because
they suggest that the product possesses special charac-
teristics when in fact all similar products possess the
same characteristics (see Article 2(1)(a)(iii) of Directive
2000/13/EC). In this case, the payment of aid for such
campaigns cannot be considered to be in the common
interest. However,
information stemming from a tracea-
bility system may be integrated into a campaign in line
with the principles on advertising where origin is the
secondary message referred to in point 23.

4.2. Advertising of products meeting particular quality

requirements

4.2.1. General considerations

45. The majority of Member States have introduced quality
control schemes specifically for agricultural and other
the quality
the products concerned meet
products.
they are often entitled to be
requirements laid down,
marked with a special
label, the advertising of which is
subsidised.

If

46. The Commission considers that in the medium and long
term, consumers appreciate products of a consistently high
quality. The advertising of quality control schemes which
aim to achieve consistently high quality standards is likely
to promote consumer confidence in Community agri-
improve farm incomes and thus
cultural production,
promote the development of
the sector as a whole.
Therefore, provided that the genuine purpose of such a
strategy is to achieve a high standard of quality, and not
to stress the national, regional or local origin of
the
the Commission takes a favourable view of
products,
such aid.

47. One condition for the public funding of advertising of
high-quality agricultural and other products is that the
products concerned should meet standards or specifi-
cations which are clearly higher or more specific than
those which are laid down in the relevant Community or
national legislation. As in the case of advertising for tracea-
bility systems, claims that products are of high quality
when in fact
legislative
requirements applicable to the marketing of all similar
products concerned may mislead the consumer, because
they suggest that the product possesses special charac-
teristics when in fact all similar products possess the

they simply meet

the relevant

the
same characteristics (see point 3.1.2).
payment of aid for such campaigns cannot be considered
to be in the common interest. Member States have to
indicate how the constant control of
the compliance
with the specific quality criteria is being maintained.

In this case,

48. The situation is different, however, in the case of products
which can be clearly distinguished from other products
falling within the same category by specific characteristics
concerning the raw materials used, the composition of the
finished products or
the production and processing
methods used. This is the case, for example, for products
covered by Council Regulation (EEC) No 2082/92 of 14
July 1992 on certificates of specific character for agri-
cultural products and foodstuffs (14), and for products
covered by Council Regulation (EEC) No 2092/91 of 24
June 1991 on organic production of agricultural products
and indications referring thereto on agricultural products
similar where
and
Community legislation has laid down different levels of
quality standards for a category of products. Since these
products clearly have specific characteristics which are not
shared by other similar products, the advertising of those
characteristics will not mislead the consumer, and is likely
to contribute to the development of the sector.

foodstuffs (15). The

situation is

required,

49. National quality control schemes should be dependent
solely on the existence of intrinsic objective characteristics
which give the products the quality required or which
concern the production process
and not
dependent on the origin of the products or the place of
production.
Irrespective of whether the quality control
schemes are compulsory or voluntary, access to such
schemes must
therefore be granted to all products
produced in the Community, irrespective of their origin,
provided that
laid down.
Furthermore, in the operation of such schemes, Member
States are required to recognise the results of comparable
controls which have been carried out in other Member
States.

the conditions

they meet

is self-evident

50. Where the scheme is restricted to products of a particular
origin (and notwithstanding point 4.1), the scheme itself is
the
contrary to the Treaty, and it
Commission cannot consider aid for the advertising of
such a scheme to be compatible with the common
market. In order to ensure that the necessary information
is provided to the consumer,
it is acceptable, and even
desirable, for the labels and logos to contain information
about
the quality control
organism which is responsible for certification and/or
control in accordance with the scheme.

the name and location of

that

(14) OJ L 208, 24.7.1992, p. 9; Regulation as amended by the Act of

Accession of Austria, Finland and Sweden.
(15) OJ L 198, 22.7.1991, p. 1; Regulation as

last amended by
Commission Regulation (EC) No 436/2001 (OJ L 63, 3.3.2001,
p. 16).

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51. On condition that a voluntary quality control scheme is
open to all
interested parties and without prejudice to
other provisions of Community law, aid may be granted
for a scheme which imposes a reference to the respective
origin of the product. However, this reference has to be
secondary to the main message of
in
accordance with point 3.1.1.

the scheme,

question. Similarly, where for practical reasons, aid is paid
to a consortium of producers, the Commission will seek
assurances that the aid will in fact benefit all producers,
whether or not they are members of the consortium.

4.2.2. Aids for the advertising of products bearing a protected desig-
indication

nation of origin or a protected geographical
registered by the Community

to

or

through

52. Where an agricultural or other product or a foodstuff
possesses particular characteristics which are due to its
it is possible for the producers of
geographical origin,
the
the
apply,
foodstuff
product
competent authorities of
the Member State concerned,
for registration at Community level of a protected desig-
nation of origin (PDO) or a protected geographical indi-
cation (PGI) in accordance with the provisions of Council
Regulation (EEC) No 2081/92 of 14 July 1992 on the
indications and designations
protection of geographical
of origin for agricultural products and foodstuffs (16) The
granting of registration means that the Community has
recognised the existence of very close links between the
concerned and its
the product
specific qualities of
the
therefore,
In
origin.
geographical
common interest does not oppose the granting of aid for
advertising and advertising which includes a reference to
the origin of the product concerned, provided that the
references to origin correspond exactly to those references
which have been registered by the Community. Similar
considerations apply to other designations of origin
which are protected under Community legislation such
as wines produced in specified regions in accordance
with Articles 54-58 of Council Regulation (EC) No
1493/1999 of 17 May on the common organisation of
the market in wine (17).

such cases,

53. In order to ensure that aid are not being given to indi-
vidual producers,
the Commission will verify that all
producers of the product covered by the PDO, PGI or,
for products outside of the scope of Regulation (EEC) No
2081/92, the other protected designation of origin are able
to benefit from the aid in the same manner. This means
that the advertising measures should relate to the PDO or
PGI itself and not to any label or logo unless all producers
of the PDO or PGI are entitled to use the label or logo in

(16) OJ L 208, 24.7.1992, p. 1; Regulation as

Commission Regulation (EC) No 2796/2000 (OJ
21.12.2000, p. 26).

last amended by
L 324,

(17) OJ L 179, 14.7.1999, p. 1; Regulation as last amended by Regu-

lation (EC) No 2826/2000 (OJ L 328, 23.12.2000, p. 2).

region.

In such cases,

54. As an alternative to the advertising of individual PDOs or
PGIs, a Member State may wish to finance a campaign for
all PDOs or PGIs covering a particular type of product, or
produced in a particular
the
Commission will apply the guidance given in points 4.1
and 4.2 by analogy.
In particular, the Commission will
verify that excessive emphasis is not being placed on the
national or regional origin of the PDOs or PGIs, that there
is no express or implied claim that the PDOs or PGIs
covered by the campaign are inherently superior
to
PDOs or PGIs from other Member States and that there
is no disparagement of products from other Member
States.

4.2.3. Aid for the advertising of products of organic farming

55. Aid will only be authorised when the products that bear
indications referring to organic farming methods satisfy
the requirements of Regulation (EEC) No 2092/91. All
the producers and processors of products of organic
farming should be subject to the system of controls laid
down in the Regulation. These controls are to be carried
out by the control authorities authorised by the Member
State.

56. Where aid is granted to producers’ organisations,

the
Commission will seek assurances that all producers are
able to benefit
from the aid in the same manner,
whether or not they are members of the organisation in
question.

57. The Commission will apply the principles set out in this
point by analogy to aid for the advertising of products
produced by other environmentally friendly production
schemes, such as integrated production methods.

5. Maximum level of State aid for the advertising of agri-

cultural and other products

58. National aid for the advertising of agricultural and other
products, even where they do not adversely affect trading
conditions to an extent contrary to the common interest,
and even where they may facilitate the development of
certain regions may
certain economic
interfere with normal
flows between Member
States for a given agricultural or other product.

activities or
trade

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to prevent

59. It is therefore in the public interest that additional guar-
antees should be sought
trading conditions
being influenced in favour of Member States expending
substantial
sums on advertising their own national
products to the detriment of those Member States which,
for budgetary or other reasons, have to or want to limit
their expenditure on such advertising.

such national aid
60. The Community’s attitude towards
should therefore take account of
the sums which the
sector itself spends on the measures concerned. It should
therefore be stipulated that, as a general rule, direct aid,
from a general purpose government budget, must not
exceed the amount which the sector itself has committed
to a given advertising campaign. Thus, in the case of aid
for advertising, the rate of direct aid should not exceed
50 % and undertakings from the sector will have to
through
contribute at
voluntary contributions or through the collection of para-
fiscal levies or compulsory contributions. To take account
of the weight of some of the positive criteria mentioned in
point 3.2, the Commission may authorise the raising of
the abovementioned maximum rate of direct aid up to
75 % of the costs in the case of advertising for products
produced by SMEs in areas eligible for support under
Article 87(3)(a) of the Treaty.

the cost, either

least 50 % of

61. As far as advertising for fishery products is concerned, the
scales and rates of assistance as contained in Annex III and
IV of Regulation (EC) No 2792/1999 apply.

6. Notification and reports

62. In order that the Commission can ensure that the criteria
contained in these guidelines
specific
procedures are laid down for notifying the aid in
question under Article 88(3) of the Treaty, and for the
provision of annual reports.

satisfied,

are

which involve either the advertising of new quality control
schemes or marks or which refer to the national or
regional origin of products.

65. In so far as existing aid within the meaning of Article 1(b),
of Council Regulation (EC) No 659/1999 of 22 March
1999 laying down detailed rules for the application of
Article 93 of the EC Treaty (18) is concerned, this specific
a
notification requirement
proposal for appropriate measures within the meaning of
Article 88(1) of the Treaty (see point 7.2).

considered as

should be

6.2. Annual reports

66. In accordance with Article 21(1) of Regulation (EC) No
659/1999, Member States are required to submit to the
Commission annual reports on all existing aid schemes.
Each Member State must
forward to the
Commission, for the first time before 30 June 2003, and
thereafter no later than 30 June each following year an
annual report on all aid for the advertising of agricultural
the
and other products granted during the course of
previous calendar year.

therefore

67. The report should be presented in accordance with the
guidance set out
the Community
in point 23.2 of
guidelines for State aid in the agricultural sector or in
point 3.3 of the guidelines for the examination of State
aid to fisheries and aquaculture respectively.

68. The report should include or be accompanied by represen-
including

tative samples of advertising materials used,
video or audio copies where appropriate.

7. Entry into force Application and proposals for appro-

priate measures

7.1. Application

6.1. Notification

63. Any aid scheme which a Member State plans to introduce
and any changes to an existing scheme must be notified to
the Commission in accordance with Article 88(3) of the
Treaty. The information requested in Annex I should be
advertising activities which are
Individual
provided.
conducted outside of
the scope of approved schemes
should also be notified to the Commission. The
information requested in Annex II should be provided.

69. The Commission will apply these guidelines to new State
aid, including pending notifications from Member States,
with effect from 1 January 2002.

70. Unlawful aid within the meaning of Article 1(f) of Regu-
lation (EC) No 659/1999 will be assessed in accordance
with the rules and guidelines applicable at the time when
the aid is granted.

64. In view of the effects which large-scale advertising may
have on competition within the Community,
it appears
necessary to introduce a requirement for the prior notifi-
cation to the Commission of certain types of new adver-
tising activities, including those which are covered by an
notification
existing
This
requirement
activities with a
to advertising
common theme which have an annual budget in excess
of EUR 5 million in the Member State concerned and

individual

scheme.

refers

aid

7.2. Proposals for appropriate measures

71.

In accordance with Article 88(1) of
the
Commission proposes to Member States to amend their
existing aid schemes relating to aid for advertising and
promotion to conform to these guidelines by 31
December 2001 at the latest.

the Treaty,

(18) OJ L 83, 27.3.1999, p. 1.

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72. Member States are invited to confirm that they accept
these proposals for appropriate measures in writing by 1
October 2001 at the latest.

7.3. Replacement of existing texts

75. The following texts are hereby replaced by these guidelines

and appropriate measures:

73.

that a Member State fails to confirm its
In the event
acceptance in writing before that date, the Commission
will
concerned has
accepted these proposals, unless it explicitly indicates its
disagreement in writing.

the Member State

assume

that

(cid:151) Commission
involvement
fisheries products,

communication

State
in the promotion of agriculture and

concerning

74. Should a Member State not accept the whole or part of
these proposals by that date, the Commission will proceed
in accordance with Article 19(2) of Regulation (EC) No
659/1999.

(cid:151) framework for national aid for advertising of agri-
cultural products and certain products not listed in
Annex I to the EC Treaty, excluding fishery products.

ANNEX I

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ANNEX II