EFTA Surveillance Authority Decision — No 40/04/COL of  17 March 2004  amending for the fortythird time the procedural and substantive rules in the field of State aid by amending chapter 26A:  multisectoral framework on regional aid for large investment projects  and proposal for appropriate measures
Date: 2004-03-17
Institutions: EFTA Surveillance Authority
Subjects: EFTA, European Economic Area, State aid, control of State aid, investment aid, man-made fibre, motor vehicle industry, regional aid

20.7.2006

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Official Journal of the European Union

C 168/15

EUROPEAN ECONOMIC AREA

EFTA SURVEILLANCE AUTHORITY

EFTA SURVEILLANCE AUTHORITY DECISION

No 40/04/COL

of 17 March 2004

amending for the fortythird time the procedural and substantive rules in the field of State aid by
amending chapter 26A: ‘multisectoral framework on regional aid for large investment projects’
and proposal for appropriate measures

(2006/C 168/07)

THE EFTA SURVEILLANCE AUTHORITY,

HAVING REGARD TO the Agreement on the European
Economic Area (1),
in particular to Articles 61 to 63 and
Protocol 26 thereof,

HAVING REGARD TO the Agreement between the EFTA
States on the establishment of a Surveillance Authority and a
Court of Justice (2), in particular to Article 24, Article 5 (2) (b),
Article 1 in Part I of Protocol 3 and Articles 18 and 19 in Part
II of Protocol 3 thereof (3),

WHEREAS, on 1 November 2003, the Commission of the
European Communities
the EC Commission)
(hereinafter
published a communication on the modification of the Mutli-
sectoral Framework on regional aid for
large investment
projects (2002) with regard to the establishment of a list of
sectors facing structural problems and on a proposal of appro-
priate measures pursuant to Article 88 paragraph 1 of the EC
Treaty, concerning the motor vehicle sector and the synthetic
fibres sector (6),

WHEREAS this framework is also of relevance for the European
Economic Area,

WHEREAS under Article 24 of the Surveillance and Court
Agreement, the EFTA Surveillance Authority shall give effect to
the provisions of the EEA Agreement concerning State aid,

WHEREAS a uniform application of the EEA State aid rules is
to be ensured throughout the European Economic Area,

WHEREAS under Article 5 (2)(b) of the Surveillance and Court
Agreement the EFTA Surveillance Authority shall issue notices
or guidelines on matters dealt with in the EEA Agreement, if
that Agreement or the Surveillance and Court Agreement
expressly so provides or if the EFTA Surveillance Authority
considers it necessary,

WHEREAS, experience gathered in recent years and informa-
tion available on the current situation of the relevant sectors
have led the Authority to decide that
limitations currently
applying to regional investment aid in the motor vehicle sector
and in the synthetic fibres sector should be maintained,

RECALLING the Procedural and Substantive Rules in the Field
of State Aid (4) adopted on 19 January 1994 by the EFTA
Surveillance Authority (5),

WHEREAS, the EFTA Surveillance Authority has decided not to
include the shipbuilding sector within the scope of the Multi-
sectoral Framework,

(1) Hereinafter referred to as the EEA Agreement.
(2) Hereinafter referred to as the Surveillance and Court Agreement.
(3) Protocol 3 to the Surveillance and Court Agreement as amended by
the EFTA States on 10 December 2001. The amendments entered
into force on 28 August 2003.

(4) Hereinafter referred to as the State Aid Guidelines.
(5) Initially published in OJ L 231, 3.9.1994, and in the EEA Supple-
last amended by College

ment thereto No 32 on the same date,
Decision No.39/04/COL, of 17.3.2004, not yet published.

WHEREAS, the EFTA Surveillance Authority has decided to
introduce a technical correction to the wording of the transi-
tional rules to the motor vehicle sector, to become applicable
for aid awarded after 31 December 2003,

(6) OJ C 263, 1.11.2003, p. 3.

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Official Journal of the European Union

20.7.2006

WHEREAS, according to point II under the heading ‘GENERAL’
at the end of Annex XV to the EEA Agreement, the EFTA
Surveillance Authority is to adopt, after consultation with the
EC Commission, acts corresponding to those adopted by the
EC Commission,

HAVING consulted the EC Commission,

the EFTA Surveillance Authority has
RECALLING that
consulted the EFTA States in a multilateral meeting on 3
February 2004 on the subject,

HAS ADOPTED THIS DECISION:

1. Chapter 26A of the State Aid Guidelines is amended as
to this decision and appropriate

described in Annex I
measures, contained in Annex I, are proposed.

2. The EFTA States shall be informed by means of a letter,
including a copy of this Decision and including Annex I.
The EFTA States shall be requested to signify their agree-
ment to the appropriate measures within one month from
receipt of this proposal.

3. The EC Commission shall be informed, in accordance with
point (d) of Protocol 27 of the EEA Agreement, by means of
a copy of this Decision, including Annex I.

4. The Decision, including Annex I, shall be published in the
EEA Section of and in the EEA Supplement to the Official
Journal of the European Union.

5. In case the EFTA States accept the proposal for appropriate
measures, a summary notice shall be published in the EEA
Section of and in the EEA Supplement to the Official Journal
of the European Union (attached in Annex 2).

6. The Decision is authentic in the English language.

Done at Brussels, 17 March 2004.

For the EFTA Surveillance Authority

President
Hannes HAFSTEIN

College Member
Einar M. BULL

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Official Journal of the European Union

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AMENDMENTS TO CHAPTER 26A ON THE MULTISECTORAL FRAMEWORK ON REGIONAL AID FOR
LARGE INVESTMENT PROJECTS (1)

ANNEX I

The present point 26A.5. (4) is replaced by:

Sectors where serious structural problems prevail may be specified in a list of sectors to be annexed to the frame-
work. No regional investment aid will be authorised in these sectors, subject to the provisions laid down in this
section. The technical feasibility and political and economic opportunity to adopt such a list of sectors will be exam-
ined before the end of 2005. If the Authority should decide to adopt such a list of sectors, it will be adopted and
published before 31 March 2006 and become applicable on the 1 of January 2007. Any appropriate measures
pursuant to Article 1(1) in Part I and Article 18 in Part II of Protocol 3 to the Surveillance and Court Agreement
that may become necessary in this context will be proposed before 1 July 2006.

The present point 26A.5. (5) is replaced by:

For the purpose of examining the technical feasibility of drawing up the list of sectors, serious structural problems
will in principle be measured on the basis of apparent consumption data, at the appropriate level of the CPA classifi-
cation (2) in the EEA, or, if such information is not available, on the basis of any other market segmentation gener-
ally accepted for the products concerned and for which statistical data are readily available. Other relevant data and
information, including sectoral studies, may also be taken into account. No sector will be included on the basis of a
purely mechanistic statistical approach. The list of sectors may be updated whenever necessary.

The first sentence of the present point 26A.5. (6) is replaced by:

If the Authority should decide to adopt such a list of sectors, as from 1 January 2007, for sectors included in the
list of sectors with serious structural problems, all regional investment aid concerning an investment project invol-
ving eligible expenditure above an amount to be determined by the Authority at the time of drawing up the list of
sectors (3) must be individually notified to the Authority, without prejudice to the provisions laid down in the State
aid block exemption concerning small and medium-sized enterprises (4), as incorporated into the EEA Agreement by
EEA Joint Committee Decision No 88/2002 of 25 June 2002 (5).

The present point 26A.8. (1) is replaced by:

Until 31 December 2006, and without prejudice to the Act referred to in point 1f of Annex XV to the EEA Agree-
ment (6), as incorporated into that Annex by EEA Joint Committee Decision No 88/2002:

(a) for aid amounts exceeding EUR 5 million, expressed in gross grant equivalent, the maximum aid intensity for
regional investment aid in the motor vehicle sector as defined in Annex C to be granted under existing aid
schemes, is limited to 30 % of the corresponding regional aid ceiling;

(b) no expenditure incurred in the context of investment projects in the synthetic fibres sector as defined in Annex

D will be eligible for investment aid.

This point enters into force as from 1 January 2004.

The present points 26A. 8 (2) and (3) are repealed.

(1) This amendments correspond to the European Commission communication on the modification of the Mutlisectoral Framework on
regional aid for large investment projects (2002) with regard to the establishment of a list of sectors facing structural problems and
on a proposal of appropriate measures pursuant to Article 88 paragraph 1 of the EC Treaty, concerning the motor vehicle sector and
the synthetic fibres sector (OJ C 263, 01.11.2003, p. 3).

(2) Council Regulation (EEC) No 3696/93 of 29 October 1993 on the statistical classification of products by activity (CPA) in the Euro-
pean Economic Community (OJ L 342, 31.12.1993, p. 1), as last amended by Commission Regulation (EC) No 204/2002 (OJ L 36,
6.2.2002, p. 1). Council Regulation (EEC) No 3696/93 was incorporated into the EEA Agreement by EEA Joint Committee Decision
No 7/94 of 21 March 1994, OJ L 160, 28.6.94, as last amended by EEA Joint Committee Decision No 110/2002, OJ L 298,
31.10.2002 and EEA Supplement No 54. cf. point 20b of Annex XXI to the EEA Agreement.

(3) This amount can in principle be set at EUR 25 million but may vary from sector to sector.
(4) Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid

to small and medium-seized enterprises (OJ L 10, 13.1.2001, p. 33).

(5) OJ L 266, 3.10.2002 and EEA Supplement No 49, cf. point 1f of Annex XV to the EEA Agreement.
(6) The State aid block exemption concerning small and medium-sized enterprises.

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Official Journal of the European Union

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After the present points 26A.9. (2), two new points 26A.9. (3) and 26A.9 (4) are inserted:

26A.9. (3): In order to have, in the absence of a list of sectors where serious structural problems prevail, a clear set
of rules applicable to regional investment in the motor vehicle sector and in the synthetic fibres sector
as from 1 January 2004, the Authority has decided to propose as appropriate measures under Article
1(1) in Part I and Article 18 in Part II of Protocol 3 to the Surveillance and Court Agreement:

— to continue to apply the existing transitional rules for the synthetic fibres sectors as defined in

Annex D until 31 December 2006,

— for aid amounts exceeding EUR 5 million, expressed in gross grant equivalent,

the
maximum aid intensity for regional investment aid in the motor vehicle sector as defined in Annex
C to be granted under existing aid schemes, to 30 % of the corresponding regional aid ceiling.

to limit

26A.9 (4): The EFTA States are invited to give their explicit agreement to the proposed appropriate measures
within the deadline specified in the letter addressed to them. In the absence of any reply, the Authority
will assume that the EFTA State in question does not agree with the proposed measures.