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 Lithuania, of the other part, with regard to the adoption of a Regional aid map on the basis of which public aid granted by Lithuania will be assessed
Date: 2002-02-01
Institutions: European Commission
Subjects: Lithuania, State aid, association agreement (EU), eligible region, regional aid

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II

(Preparatory Acts)

COMMISSION

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 Lithuania, of the other part, with regard to the
adoption of a Regional aid map on the basis of which public aid granted by Lithuania will be
assessed

(2003/C 20 E/01)

COM(2002) 35 final — 2002/0028(ACC)

(Submitted by the Commission on 1 February 2002)

EXPLANATORY MEMORANDUM

1. This is a proposal for the adoption of a Regional aid map on the basis of which public aid granted by

Lithuania will be assessed.

According to Article 64(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 Lithuania shall be assessed taking into account
the fact that Lithuania 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 24 July 2000 the EU-Lithuania Association Council adopted decision No 2/2000 with regard to the
extension for a further period of five years of Lithuania 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 2/2000 obliged Lithuania 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 Lithuanian 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).

2. 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
the
regions eligible under Article 87(3)(a) whose per capita GDP/PPS is greater than 60 % of
Community average,
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.

the intensity of regional aid must not exceed 40 % NGE, except

All the above mentioned ceilings may be raised by 15 percentage points gross in the case of aid granted
to small and medium-sized enterprises (2). 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.

3. The Commission hereinafter submits the joint proposal to the Council and requests the Council to

adopt the attached proposal for an Association Committee Decision.

(1) OJ C 74, 10.3.1998, p. 9.
(2) OJ L 107, 30.4.1996, p. 4.

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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 from the Commission;

Having regard to Article 64(4)(a) of the Europe Agreement;

Having regard to Article 4(2) of the Implementing Rules for the
application of
the Europe
Agreement;

the provisions on State aid of

Having regard to decision No 2/2000 of the EU-Lithuania
Association Council of 24 July 2000 with regard to the
extension for a further period of five years of Lithuania 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) Article 2 of the decision No 2/2000 obliged Lithuania
within six months of the date of the adoption of the
the GDP per capita figures which
decision to submit
have been harmonised at NUTS II level to the European
Commission;

(2) The Lithuanian 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 (1);

(3) According to the above mentioned decision, a joint
the Association

proposal
Committee, which shall take a decision to this effect.

submitted

shall

be

to

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) 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) All the above mentioned ceilings may be raised by 15
percentage points gross in the case of aid granted to
small and medium-sized enterprises (2), 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) Beneath these ceilings, it will be ensured that the regional
the seriousness and

aid intensity is adjusted to reflect
intensity of the regional problems addressed;

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

statistical

average,

to

(11) The relative situation of each NUTS III level region does
not justify any differentiation of the level of regional aid;

(12) The maximum aid intensities applicable therein, as jointly
aid monitoring
in
the

evaluated by
authority
and
conformity with
the
Community guidelines on national regional aid;

European Commission,

the Lithuanian State

requirements

are
by

the

set

(4) 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) In the NUTS level II regions eligible under Article 87(3)(a)
whose per capita GDP/PPS is greater than 60 % of the

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 Lithuania, 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.

(1) OJ C 74, 10.3.1998, p. 9.

(2) OJ L 107, 30.4.1996, p. 4.

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Decision No . . ./2001 of the Association Committee between the European Communities and their
Member States, of the one part, and Lithuania, of the other part, of . . . adopting a regional aid map
on the basis of which public aid granted by Lithuania 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 Lithuania, of the other
part (1) and in particular Article 64(4)(a) thereof,

Having regard to Article 4(2) of the Implementing Rules for the
the Europe
application of
Agreement;

the provisions on State aid of

Having regard to decision No 2/2000 of the EU-Lithuania
Association Council of 24 July 2000 with regard to the
extension for a further period of five years of Lithuania as
an area identical to those areas of the Community described
the Treaty establishing the European
in Article 87(3)(a) of
Community;

(1) Whereas Article 2 of the decision No 2/2000 obliged
Lithuania 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 Lithuanian State aid monitoring authority
and the European Commission jointly evaluated the eligi-
bility of
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 (2);

the regions as well as

(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;

(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 enterprises (3), 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 Lithuania 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 the relative situation of each NUTS III

level
region does not justify any differentiation of the level of
regional aid;

regional aid,

(4) Whereas according to the Community guidelines on
falling
the Treaty the intensity of
in general not exceed the rate of
in the outermost regions, where it

national
under Article 87(3)(a) of
regional aid must
50 % NGE, except
may be as much as 65 % NGE;

in the case of

regions

(12) Whereas the maximum aid intensities applicable therein,
as jointly evaluated by the Lithuanian State aid moni-
toring authority and the European Commission, are in
conformity with
the
the
Community guidelines on national regional aid;

requirements

set

by

(1) OJ L 51, 20.2.1998 p. 3.
(2) OJ C 74, 10.3.1998, p. 9.

(3) OJ L 107, 30.4.1996, p. 4.

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HAS DECIDED AS FOLLOWS:

Article 1

The maximum aid intensity applicable in Lithuania shall be
limited, in net grant equivalent, to 50 %.

Article 2

The maximum aid intensity referred to under Article 1 may be
raised by 15 gross percentage points in the case of aid granted
to small and medium-sized enterprises. It shall constitute an
upper limit which applies 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.

Article 3

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

Done at Brussels, . . .

For the Association Committee

The President