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 Poland, of the other part, with regard to the adoption of a Regional aid map on the basis of which regional aid granted by Poland will be assessed
Date: 2002-11-18
Institutions: European Commission
Subjects: Poland, State aid, aid evaluation, regional 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 Poland, of the other part, with regard to the
adoption of a Regional aid map on the basis of which regional aid granted by Poland will be
assessed

(2003/C 71 E/06)

COM(2002) 630 final — 2002/0267(ACC)

(Submitted by the Commission on 18 November 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

Poland 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 regional aid granted by Poland shall be assessed taking into account
the fact that Poland 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 7 May 2001 the EU-Poland Association Council adopted Decision No 2/2001 with regard to the
extension for a further period of five years of Poland 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 1997.

Article 2 of Decision No 2/2001 obliged Poland 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 Decision. On that basis, the Polish Office for Competition and Consumer Protection
and the European Commission jointly evaluated the eligibility of the regions as well as the maximum
in order to draw up the regional aid map on the basis of the
aid intensities in relation thereto,
Community guidelines on national regional aid (1).

The joint evaluation by the Polish Office for Competition and Consumer Protection and the European
Commission demonstrates that per capita GDP/PPS in all NUTS level II regions in Poland 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 2001, the
expiry date of the period for which Poland was considered as an area identical to those areas of the
Community described in Article 87(3)(a) of the Treaty in accordance with the Decision of Decision
No 2/2001 of the EU-Poland Association Council of 7 May 2001. Instead, it is proposed to extend the
duration of the regional aid map until the date of accession or to 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.

2. 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.

3. Poland consists of 16 NUTS level II regions (Voivodships), of which none has a per capita GDP/PPS that
the years

the Community average, according to statistical data available for

exceeds 60 % of
1997-1999.

4. In the proposed regional aid map, all NUTS level II regions are therefore granted the Article 87(3)(a)
status. The regional aid intensity ceiling is set at 50 % NGE in all NUTS level II regions, except in the
NUTS level III regions of Wroclaw, Krakow and Gdansk-Gdynia-Sopot, where it is set at 40 % NGE and
in the NUTS level III regions of Poznan and Warsz where it is set at 30 % NGE.

The above intensities are raised by 15 gross percentage points in the case of aid granted to small and
medium-sized enterprises.

5. The Polish State aid monitoring authority (the Office for Competition and Consumer Protection) and
the European Commission jointly evaluated the proposed regional aid map for Poland and concluded
that it is in conformity with the Community guidelines on national regional aid.

6. 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,

Whereas:

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 63(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 3/2001 of
EU-Poland Association Council of 23 May 2001;

the provisions on State aid of

the EU-Poland
Having regard to Decision No 2/2001 of
Association Council of 7 May 2001 with regard to the
extension for a further period of five years of Poland 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;

(1) Article 2 of

the Decision No 2/2001 obliged Poland
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 Polish State aid monitoring authority (the Office for
Competition and Consumer Protection) 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 Article 4(2) of the Implementing rules, in
conjunction with Article 2, third sentence of Decision
2/2001 of
the EU-Poland Association Council, a joint
proposal shall be submitted to the Association Committee,
which shall take a decision to this effect.

(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.

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

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(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) Within the limit of 75 % NGE all the above-mentioned
ceilings may be raised by 15 percentage points gross in
the case of aid granted to small and medium-sized enter-
prises (1), and constitute upper limits which apply to the
total aid whenever assistance is granted concurrently
under
and regardless of
whether
regional, national or
it comes
Community sources.

from local,

schemes,

regional

several

60 % of the Community average, according to statistical
data available for the years 1997-1999.

(11) Poland consists of 44 NUTS level III regions (districts) of
which five have a higher GDP and a lower unemployment
rate than the average and therefore it is appropriate to fix
lower aid intensities: 40 % NGE in case of Wroclaw,
Krakow and Gdansk-Gdynia-Sopot and 30 % NGE in
case of Poznan and Warszawa.

(12) The maximum aid intensities applicable in each of the
above-mentioned regions, as jointly evaluated by the
Polish Office for Competition and Consumer Protection
and the European Commission, are in conformity with the
requirements
set by the Community guidelines on
national regional aid,

(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) Poland consists of 16 NUTS level II regions (Voivodships),
of which none has a per capita GDP/PPS that exceeds

HAS DECIDED AS FOLLOWS:

Sole Article

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 Poland, 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 L 107, 30.4.1996, p. 4.

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

THE ASSOCIATION COMMITTEE,

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,

(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.

Having regard to the proposal of
European Communities,

the Commission of

the

(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.

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

Having regard to Article 4(2) of the Implementing Rules for the
the Europe
application of
Agreement, as adopted by Decision No 3/2001 of
the
EU-Poland Association Council of 23 May 2001,

the provisions on State aid of

Having regard to Decision No 2/2001 of
the EU-Poland
Association Council of 7 May 2001 with regard to the
extension for a further period of five years of Poland 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 2/2001 obliged Poland
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 Polish State aid monitoring authority (the Office for
Competition and Consumer Protection) 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 Article 4(2) of the Implementing rules, in
conjunction with Article 2, third sentence of Decision
2/2001 of
the EU-Poland Association Council, a joint
proposal shall be submitted to the Association Committee,
which shall take a decision to this effect.

(7) Within the limit of 75 % NGE all the above-mentioned
ceilings may be raised by 15 percentage points gross in
the case of aid granted to small and medium-sized enter-
prises (2), and constitute upper limits which apply to the
total aid whenever assistance is granted concurrently
and regardless of
under
whether
regional, national or
it comes
Community sources.

from local,

schemes,

regional

several

(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.

(10) Poland consists of 16 NUTS level II regions (Voivodships),
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.

(11) Poland consists of 44 NUTS level III regions (districts) of
which five have a higher GDP and a lower unemployment
rate than the average and therefore it is appropriate to fix
lower aid intensities: 40 % NGE in case of Wroclaw,
Krakow and Gdansk-Gdynia-Sopot and 30 % NGE in
case of Poznan and Warszawa.

(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.

(12) The maximum aid intensities applicable in each of the
above-mentioned regions, as jointly evaluated by the
Polish Office for Competition and Consumer Protection
and the European Commission, are in conformity with the
requirements
set by the Community guidelines on
national regional aid,

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

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

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HAS DECIDED AS FOLLOWS:

Article 2

Article 1

Kujawsko-pomorskie,

Maximum aid intensities applicable in Poland shall be limited,
in net grant equivalent, to 50 % in the NUTS level II regions of
Dolnoslaskie,
Lubuskie,
Lodzkie, Maloposkie, Mazowieckie, Opolskie, Podkarpackie,
Podlaskie, Pomorskie, Slaskie, Swietokryskie, Warminsko-
Mazurskie, Wielkopolskie
but
thereof only 40 % in the NUTS level III regions of Wroclaw,
Krakow and Gdansk-Gdynia-Sopot, and 30 % in the NUTS level
III regions of Poznan and Warszawa.

and Zachodniopomorski,

Lubelskie,

The maximum aid intensity ceilings referred to under Article
1(1) 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.

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 Poland's
accession to the EU, whichever comes earlier.

Done at Brussels, . . .

Maximum aid intensities referred to under Article 1(1) above
may be raised by 15 gross percentage points in the case of aid
granted to small and medium-sized enterprises.

For the Association Committee

The President