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 Romania, of the other part, with regard to the adoption of a Regional aid map on the basis of which regional aid granted by Romania will be assessed
Date: 2002-06-24
Institutions: European Commission
Subjects: Association Council (EU), Romania, State aid, aid policy, aid system, distribution of aid, eligibility criteria, eligible region, regional aid, terms for aid

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

(2003/C 20 E/08)

COM(2002) 337 final — 2002/0130(ACC)

(Submitted by the Commission on 24 June 2002)

EXPLANATORY MEMORANDUM

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

Romania 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 regional aid granted by Romania shall be assessed taking into
account the fact that Romania 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 17 July 2000 the EU-Romania Association Council adopted decision No 2/2000 with regard to the
extension for a further period of five years of Romania 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 1998 and expires on 31 December 2002.

Article 2 of decision No 2/2000 obliged Romania to submit the GDP per capita figures which have
been harmonised at NUTS level II to the European Commission within six months of the date of the
adoption of
the Romanian Competition Council 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).

the decision. On that basis,

2. The joint evaluation by the Romanian Competition Council and the European Commission demon-
strates that per capita GDP/PPS in all NUTS level II regions in Romania is significantly lower than 60 %
of the Community average. In view of this and in reference to Article 4(2) of the Implementing Rules
for the application of the provisions on State aid of the Europe Agreement, it is considered that the
duration of the Regional aid map should not be limited to 31 December 2002, the expiry date of the
period for which Romania is considered as an area identical to those areas of the Community described
in Article 87(3)(a) of the EC Treaty in accordance with decision No 2/2000 of the EU-Romania
Association Council adopted on 17 July 2000. Instead, it is proposed to extend the duration of the
regional aid map until the date of accession or until 31 December 2006, whatever comes first. The
inclusion of 31 December 2006 as end date is important to maintain consistency with the maps for the
current Member States, all of which (except the map for Germany) will expire on that date, as well as
with programming of Structural Funds support.

3. According to the Community guidelines on national regional aid, in the case of regions falling under
Article 87(3)(a) of the EC Treaty the intensity of regional aid must 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.

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

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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 (1). 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.

4. 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 L 107, 30.4.1996, p. 4.

THE COUNCIL OF THE EUROPEAN UNION,

joint proposal shall be submitted to the Association
Committee, which shall take a decision to this effect.

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
European Communities;

the Commission of

the

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

Having regard to Article 4(2) of the Implementing Rules for the
the Europe
application of
the
Agreement, as adopted by Decision No 4/2000 of
EU-Roumania Association Council of 10 April 2001;

the provisions on State aid of

Having regard to Decision No 2/2000 of the EU-Romania
Association Council of 17 July 2000 with regard to the
extension for a further period of five years of Romania as an
area identical to those areas of the Community described in
Article 87(3)(a) of
the Treaty establishing the European
Community, and in particular its article 2, third sentence;

Whereas:

(1) Article 2 of the decision No 2/2000 obliged Romania
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 level II to the European
Commission.

(2) The Romanian State

aid monitoring authority (the
Competition Council) 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).

(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
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
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
the countries which have concluded Europe
of all
agreements with the European Communities.

(3) According to Article 4(2) of the Implementing Rules, in
conjunction with Article 2, third sentence of Decision
the EU-Roumania Association Council, a
2/2000 of

(10) Romania consists of 8 NUTS level II regions, of which
none has a per capita GDP/PPS that exceeds 60 % of the
Community average, according to statistical data available
for the years 1997-1999.

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

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

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(11) The relative situation of each NUTS level II region does
not justify any differentiation of the regional aid intensity
ceilings.

HAS DECIDED AS FOLLOWS:

(12) The maximum aid intensities applicable in each of the
above mentioned regions, as jointly evaluated by the
Romanian Competition Council
European
Commission, are in conformity with the requirements
set by the Community guidelines on national regional aid,

and the

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 Romania, 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.

Decision No . . ./2002 of the Association Committee between the European Communities and their
Member States, of the one part, and Romania, of the other part, of . . . adopting a regional aid map
on the basis of which regional aid granted by Romania will be assessed

THE ASSOCIATION COMMITTEE,

to draw up the regional aid map on the basis of the
Community guidelines on national regional aid (2).

Having regard to the Europe Agreement establishing an
association between the European Communities and their
Member States, of the one part, and Romania, of the other
part (1) and in particular Article 64(4)(a) thereof,

(3) according Article 4(2) of the Implementing Rules, a joint
the Association

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

submitted

shall

be

to

Having regard to decision No 2/2000 of
the EU-Romania
Association Council of 17 July 2000 with regard to the
extension for a further period of five years of Romania as an
area identical to those areas of the Community described in
Article 87(3)(a) of
the Treaty establishing the European
Community;

(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
not exceed the rate of 50 % NGE, except in the outermost
regions, where it may be as much as 65 % NGE.

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

the provisions on State aid of

Whereas:

(1) Article 2 of the decision No 2/2000 obliged Romania
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 level II to the European
Commission.

(2) the Romanian State

aid monitoring authority (the
Competition Council) and the European Commission
jointly evaluated the eligibility of the regions as well as
the maximum aid intensities in relation thereto in order

(5) 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) 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
gross percentage points 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.

(1) OJ L 357, 31.12.1994, p. 2.
(2) OJ C 74, 10.3.1998, p. 9.

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

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(8) 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.

HAS DECIDED AS FOLLOWS:

Article 1

(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.

The maximum aid intensity applicable in Romania shall be
limited, in net grant equivalent, to 50 %. This maximum aid
intensity may be raised by 15 gross percentage points in the
case of aid granted to small and medium-sized enterprises (1).

Article 2

(10) Romania consists of 8 NUTS level II regions, of which
none has a per capita GDP/PPS that exceeds 60 % of the
Community average, according to statistical data available
for the years 1997-1999.

The maximum aid intensities referred to under Article 1 shall
constitute upper limit which apply to the total aid whenever
regional
assistance is granted concurrently under
schemes, and regardless of whether
it comes from local,
regional, national or Community sources.

several

(11) The relative situation of each NUTS level II region does
not justify any differentiation of the regional aid intensity
ceilings.

Article 3

This Decision shall enter into force on the day of its adoption.
It shall expire on 31 December 2006 or the date of Romania's
accession to the EU, whichever comes earlier.

(12) the maximum aid intensities applicable in each of the
above-mentioned regions, as jointly evaluated by the
European
Romanian Competition Council
Commission, are in conformity with the requirements
set by the Community guidelines on national regional aid,

and the

Done at Brussels, [. . .]

For the Association Committee

The President

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