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 the Slovak Republic, of the other part, with regard to the adoption of a Regional aid map on the basis of which public aid granted by the Slovak Republic will be assessed
Date: 2002-02-05
Institutions: European Commission
Subjects: Slovakia, State aid, association agreement (EU), eligible region, regional aid

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 05.02.2002
COM(2002)34 final

2002/0027 (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 the Slovak Republic, of the other part, with regard
to the adoption of a Regional aid map on the basis of which public aid granted by the
Slovak Republic 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 the Slovak Republic 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 the
Slovak Republic shall be assessed taking into account the fact that the Slovak
Republic 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 18 May 2001 the EU-Slovakia Association Council adopted decision No 3/2001
with regard to the extension for a further period of five years of the Slovak Republic
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 March 1997 and expires on 28 February 2002.

Article 2 of decision No 3/2001 obliged the Slovak Republic 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 Slovak Republic 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 aid1.

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

2002/0027 (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 the Slovak Republic, of the other part, with regard
to the adoption of a Regional aid map on the basis of which public aid granted by the
Slovak Republic 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 64(4)(a) of the Europe Agreement;

Having regard to decision No 3/2001 of
the EU-Slovakia Association Council of
18 May 2001 with regard to the extension for a further period of five years of the Slovak
Republic 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 3/2001 obliged the Slovak Republic 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 Slovak Republic 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 aid3;

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;

The Slovak Republic consists of four NUTS II regions, of which one (Bratislava) has a
per capita GDP/PPS that exceeds 60% of the Community average, according to statistical
data available for years 1996-1998;

In order to differentiate the level of regional aid and in view of the specific situation of
the region of Bratislava, the intensity ceiling for this region should be fixed at a level
substantially below the upper limit set out by the Community guidelines on national
regional aid;

The maximum aid intensities applicable therein, as jointly evaluated by the Slovak
Republic 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:

4

OJ L 107 of 30.4.1996, p. 4.

4

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 the Slovak Republic, 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,

For the Council
The President

5

ASSOCIATION BETWEEN THE EUROPEAN UNIONAND THE SLOVAK

ANNEX

REPUBLIC

- The Association Committee-

DECISION No …/2001 OF THE ASSOCIATION COMMITTE

BETWEEN THE EUROPEAN COMMUNITIES

AND THEIR MEMBER STATES, OF THE ONE PART,

AND THE SLOVAK REPUBLIC, OF THE OTHER PART,

of

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

granted by the Slovak Republic 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 the Slovak Republic, of the other
part5 and in particular Article 64(4)(a) thereof,

Having regard to decision No 3/2001 of the EU-Slovakia Association Council of 18 May
2001 with regard to the extension for a further period of five years of the Slovak Republic 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 3/2001 obliged the Slovak Republic 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 Slovak Republic 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 359 of 31.12.1994 p. 2 – 210
OJ C 74 of 10.3.1998, p. 9

6

(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 the Slovak Republic consists of four NUTS II regions, of which one
(Bratislava) has a per capita GDP/PPS that exceeds 60% of the Community average, according
to statistical data available for years 1996-1998;

(11) Whereas, in order to differentiate the level of regional aid and in view of the specific
situation of the region of Bratislava, the intensity ceiling for this region should be fixed at a level
substantially below the upper limit set out by the Community guidelines on national regional aid;

(12) Whereas the maximum aid intensities applicable therein, as jointly evaluated by the
Slovak Republic 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 the Slovak Republic shall be limited, in net grant
equivalent, to 50% in the NUTS II regions of Western Slovakia, Central Slovakia and Eastern
Slovakia, and 30% in the NUTS II region of Bratislava.

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.

7

This Decision shall enter into force on the day of its adoption. It shall expire on 28 February
2002.

Article 3

Done at Brussels,

For the Association Committee

The President

8