Proposal for a Council Decision on the position to be taken by the Community within the Association Committee established by the Europe Agreement between the European Communities and their Member States, of the one part, and Estonia, of the other part, with regard to the adoption of a Regional aid map on the basis of which public aid granted by Estonia will be assessed
Date: 2002-02-01
Institutions: European Commission
Subjects: Estonia, State aid, association agreement (EU), eligible region, regional aid

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 01.02.2002
COM(2002) 38 final

2002/0033 (ACC)

Proposal for a

COUNCIL DECISION

on the position to be taken by the Community within the Association Committee
established by the Europe Agreement between the European Communities and their
Member States, of the one part, and Estonia, of the other part, with regard to the
adoption of a Regional aid map on the basis of which public aid granted by Estonia will
be assessed

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

This  is  a  proposal  for  the  adoption  of  a  Regional  aid  map  on  the  basis  of  which
public aid granted by Estonia will be assessed.

According to Article 63(4)(a) of the  Europe  Agreement, the Parties  recognised that
during the first five years after its entry into force, any public aid granted by Estonia
shall be assessed taking into account the fact that Estonia shall be regarded as an area
identical to those areas of the Community described in Article 87(3)(a) of the Treaty
establishing the European Community.

On  1  December  2000  the  EU-Estonia  Association  Council  adopted  decision
No 3/2000 with regard to the extension for a further period of five years of Estonia as
an area identical to those areas of the Community described in Article 87(3)(a) of the
Treaty  establishing  the  European  Community.  The  decision  was  applied  as  from
1 January 2000 and expires on 31 December 2004.

Article 2 of decision No 3/2000 obliged Estonia to submit the GDP per capita figures
which have been harmonised at NUTS II level to the European Commission within
six months  of  the  date  of  the  adoption  of  the  decision.  On  that  basis,  the  Estonian
State  aid  monitoring  authority  and  the  European  Commission  jointly  evaluated  the
eligibility of the region as well as the maximum aid intensities in relation thereto, in
order to draw up the regional aid map on the basis of the Community guidelines on
national regional aid 1.

According  to  the  Community  guidelines  on  national  regional  aid,  in  the  case  of
regions falling under Article 87(3)(a) of the Treaty the intensity of regional aid must in
general not exceed the rate of 50% NGE, except in the outermost regions, where it may
be as much as 65% NGE. In the NUTS level II regions eligible under Article 87(3)(a)
whose per capita GDP/PPS is greater than 60% of the Community average, the intensity
of regional aid must not exceed 40%  NGE,  except in the  outermost regions, where it
may  be  as  high  as  50%  NGE.  The  GDP/PPS  of  each  region  and  the  Community
average to be used in the analysis must relate to the average of the last three years for
which statistics are available.

All the  above mentioned ceilings may  be  raised  by  15  percentage  points  gross in the
case  of  aid  granted  to  small  and  medium-sized  enterprises2.  They  nevertheless
constitute  upper  limits  which  apply  to  the  total  aid  whenever  assistance  is  granted
concurrently under several regional schemes, and regardless of whether it comes from
local,  regional,  national  or  Community  sources.  Beneath  these  ceilings,  it  will  be
ensured that the regional aid intensity is adjusted to reflect the seriousness and intensity
of the regional problems addressed.

The Commission hereinafter submits the  joint proposal  to the Council and requests
the Council to adopt the attached proposal for an Association Committee Decision.

OJ C 74 of 10.3.1998, p. 9
OJ L 107 of 30.4.1996, p. 4.

2

2.

3.

1

2

                                                
2002/0033 (ACC)

Proposal for a

COUNCIL DECISION

on the position to be taken by the Community within the Association Committee
established by the Europe Agreement between the European Communities and their
Member States, of the one part, and Estonia, of the other part, with regard to the
adoption of a Regional aid map on the basis of which public aid granted by Estonia will
be assessed

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
133 in conjunction with the first sentence of Article 300(2) thereof;

Having regard to the proposal of the Commission;

Having regard to Article 63(4)(a) of the Europe Agreement;

Having  regard  to  decision  No  3/2000  of  the  EU-Estonia  Association  Council  of
1 December 2000 with regard to the extension for a further period of five years of Estonia as
an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty
establishing the European Community;

Whereas:

(1)

(2)

(3)

(4)

Article 2 of the decision No 3/2000 obliged Estonia within six months of the date of
the  adoption  of  the  decision  to  submit  the  GDP  per  capita  figures  which  have  been
harmonised at NUTS II level to the European Commission;

The  Estonian  State  aid  monitoring  authority  and  the  European  Commission  jointly
evaluated  the  eligibility  of  the  regions  as  well  as  the  maximum  aid  intensities  in
relation  thereto  in  order  to  draw  up  the  regional  aid  map  on  the  basis  of  the
Community guidelines on national regional aid 3;

According to the above mentioned decision, a joint proposal shall be submitted to the
Association Committee, which shall take a decision to this effect;

According to the Community guidelines on national regional aid, in the case of regions
falling under Article 87(3)(a) of the Treaty the intensity of regional aid must in general
not exceed the rate of 50% NGE, except in the  outermost  regions,  where  it  may  be  as
much as 65% NGE;

3

OJ C 74 of 10.3.1998, p. 9

3

                                                
(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

In the NUTS level II regions eligible under Article 87(3)(a) whose per capita GDP/PPS is
greater  than  60%  of  the  Community  average,  the  intensity  of  regional  aid  must  not
exceed  40%  NGE,  except  in  the  outermost  regions,  where  it  may  be  as  high  as  50%
NGE;

The GDP/PPS of each region and the Community average to be used in the analysis must
relate to the average of the last three years for which statistics are available;

All the above mentioned ceilings may be raised by 15 percentage points gross in the case
of aid granted to small and medium-sized enterprises4, and constitute upper limits which
apply to the total aid whenever assistance is granted concurrently under several regional
schemes, and regardless of whether it comes from local, regional, national or Community
sources;

Beneath  these  ceilings,  it  will  be  ensured  that  the  regional  aid  intensity  is  adjusted  to
reflect the seriousness and intensity of the regional problems addressed;

The seriousness and intensity of the regional problems addressed must be assessed within
the broader context of all  the countries  which have  concluded  Europe agreements with
the European Communities;

Estonia consists of a single NUTS II region, which has a per capita GDP/PPS that does
not  exceed  60%  of  the  Community  average,  according  to  statistical  data  available  for
years 1996-1998;

In  view  of  the  relative  situation  of  each  NUTS  III  level  region,  it  is  appropriate  to  fix
lower aid intensities in the region of Northern Estonia;

The maximum aid  intensities applicable  therein,  as jointly  evaluated by the Estonian
State aid monitoring authority and the European Commission, are in conformity with
the requirements set by the Community guidelines on national regional aid;

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Committee established by
the Europe Agreement between the European Communities and their Member  States,  of the
one part, and Estonia, of the other part, with regard to the adoption of the  regional aid map
shall be based on the draft decision of the Association Committee annexed to this Decision.

Done at Brussels,

4

OJ L 107 of 30.4.1996, p. 4.

For the Council
The President

4

                                                
ASSOCIATION BETWEEN THE EUROPEAN UNION AND ESTONIA

ANNEX

- The Association Committee-

DECISION No …/2001 OF THE ASSOCIATION COMMITTE

BETWEEN THE EUROPEAN COMMUNITIES

AND THEIR MEMBER STATES, OF THE ONE PART,

AND ESTONIA, OF THE OTHER PART,

of

adopting a regional aid map on the basis of which public aid

granted by Estonia will be assessed

THE ASSOCIATION COMMITTEE,

Having  regard  to  the  Europe  Agreement  establishing  an  association  between  the  European
Communities and their Member States, of the one part, and Estonia, of the other part5 and in
particular Article 63(4)(a) thereof,

Having  regard  to  decision  No  3/2000  of  the  EU-Estonia  Association  Council  of
1 December 2000 with regard to the extension for a further period of five years of Estonia as
an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty
establishing the European Community;

(1) Whereas Article 2 of the decision No 3/2000 obliged Estonia within six months of the
date  of  the  adoption  of  the  decision  to  submit  the  GDP  per  capita  figures  which  have  been
harmonised at NUTS II level to the European Commission;

(2) Whereas  the  Estonian  State  aid  monitoring  authority  and  the  European  Commission
jointly  evaluated  the  eligibility  of  the  regions  as  well  as  the  maximum  aid  intensities  in
relation  thereto  in  order  to  draw  up  the  regional  aid  map  on  the  basis  of  the  Community
guidelines on national regional aid 6;

(3) Whereas  according  to  the  above  mentioned  decision,  a  joint  proposal  shall  be
submitted to the Association Committee, which shall take a decision to this effect;

(4) Whereas according to the Community guidelines on national regional aid, in the case
of regions falling under Article 87(3)(a) of the Treaty the intensity of regional aid must in general
not exceed the rate of 50% NGE, except in the outermost regions, where it may be as much as
65% NGE;

5

6

OJ L 68 of 9.3.1998 p. 3 – 198
OJ C 74 of 10.3.1998, p. 9

5

                                                
(5) Whereas in the NUTS level II regions eligible under Article 87(3)(a) whose  per  capita
GDP/PPS is greater than 60% of the Community average, the intensity of regional aid must not
exceed 40% NGE, except in the outermost regions, where it may be as high as 50% NGE;

(6) Whereas  the  GDP/PPS  of  each  region  and  the  Community  average  to  be  used  in  the
analysis must relate to the average of the last three years for which statistics are available;

(7) Whereas all the above mentioned ceilings may be raised by 15 percentage points gross in
the case of aid granted to small and medium-sized enterprises7, and constitute upper limits which
apply  to  the  total  aid  whenever  assistance  is  granted  concurrently  under  several  regional
schemes,  and  regardless  of  whether  it  comes  from  local,  regional,  national  or  Community
sources;

(8) Whereas  beneath  these  ceilings,  it  will  be  ensured  that  the  regional  aid  intensity  is
adjusted to reflect the seriousness and intensity of the regional problems addressed;

(9) Whereas  the  seriousness  and  intensity  of  the  regional  problems  addressed  must  be
assessed  within  the  broader  context  of  all  the  countries  which  have  concluded  Europe
agreements with the European Communities;

(10) Whereas Estonia consists of a single NUTS II region, which has a per capita GDP/PPS
that does not exceed 60% of the Community average, according to statistical data available for
years 1996-1998;

(11) Whereas, in view of the relative situation of each NUTS III level region, it is appropriate
to fix lower aid intensities in the region of Northern Estonia;

(12) Whereas  the  maximum  aid  intensities  applicable  therein,  as  jointly  evaluated  by  the
Estonian  State  aid  monitoring  authority  and  the  European  Commission,  are  in  conformity
with the requirements set by the Community guidelines on national regional aid;

HAS DECIDED AS FOLLOWS:

Article 1

Maximum  aid  intensities  applicable  in  Estonia  shall  be  limited,  in  net  grant  equivalent,  to
50% in the NUTS III regions of Central Estonia, North-Eastern Estonia, Western Estonia and
Southern Estonia, and 40% in the NUTS III region of Northern Estonia.

Article 2

Maximum aid intensities referred to under Article 1 may be raised by 15 gross percentage points
in the case of aid granted to small and medium-sized  enterprises8.  They  shall  constitute  upper
limits  which  apply  to  the  total  aid  whenever  assistance  is  granted  concurrently  under  several
regional  schemes,  and  regardless  of  whether  it  comes  from  local,  regional,  national  or
Community sources.

7

8

OJ L 107 of 30.4.1996, p. 4.
OJ L 107 of 30.4.1996, p. 4.

6

                                                
This  Decision  shall  enter  into  force  on  the  day  of  its  adoption.  It  shall  expire  on
31 December 2004, or the date of Estonia’s accession to the EU, whichever comes earlier.

Article 3

Done at Brussels,

For the Association Committee

The President

7