Draft Commission regulation on the application of Articles 87 and 88 of the EC Treaty to national regional investment aid
Date: 2006-05-20
Institutions: European Commission
Subjects: State aid, control of State aid, investment aid, regional aid

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on the application of Articles 87 and 88 of the EC Treaty to national regional investment aid

Draft Commission regulation

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(3)

(2006/C 120/02)

Having regard to the Treaty establishing the European Com-
munity,

Having regard to Council Regulation (EC) No 994/98 of 7 May
1998 on the application of Articles 92 and 93 of the Treaty
establishing the European Community to certain categories of
horizontal State aid (1), and in particular points (a)(i) and (b) of
Article 1(1) thereof,

Having published a draft of this Regulation (2),

After consulting the Advisory Committee on State Aid,

Whereas:

(1)

(2)

Regulation (EC) No 994/98 empowers the Commission
to declare,
in accordance with Article 87 of the EC
Treaty, that under certain conditions aid that complies
with the map approved by the Commission for each
Member State for the grant of regional aid is compatible
with the common market and is not subject to the noti-
fication requirement of Article 88(3) of the EC Treaty.

large

aid for

in particular

The Commission has applied Articles 87 and 88 of the
Treaty to regional
investment aid schemes in assisted
areas in numerous decisions and has also stated its
in the guidelines on national
policy,
regional aid for 2007-2013 (3),
in the Multisectoral
Framework on regional
investment
projects (4), as well as in Commission Regulation (EC) No
70/2001 of 12 January 2001 on the application of Arti-
cles 87 and 88 of the EC Treaty to State aid to small and
medium-sized enterprises (5). In the light of the Commis-
sion's considerable experience in applying Articles 87
and 88 of the Treaty to regional investment aid and in
the light of the guidelines on national regional aid issued
by the Commission on the basis of those provisions, it is
appropriate, with a view to ensuring efficient supervision
and simplifying
administration without weakening
Commission monitoring, that the Commission should
make use of the powers conferred by Regulation (EC) No
994/98.

the disadvantaged
By addressing the handicaps of
regions, national regional aid promotes the economic,
social and territorial cohesion of Member States and the
Community as a whole. National regional investment aid
is designed to assist the development of the most disad-
vantaged regions by supporting investment and job crea-
tion in a sustainable context. It promotes the expansion,
rationalization, modernization and diversification of the
economic activities of enterprises located in the less-
favoured regions, in particular by encouraging firms to
set up new establishments there.

(4)

(5)

In order to determine whether or not aid is compatible
with the common market pursuant to this Regulation, it
is necessary to take into consideration the aid intensity
and thus the aid amount expressed as a grant equivalent.
The calculation of the grant equivalent of aid payable in
several
instalments requires the use of market interest
rates prevailing at the time of grant. With a view to a
uniform, transparent, and simple application of the State
aid rules, the market rates for the purposes of this Regu-
lation should be deemed to be the reference rates. The
reference rates should be those which are periodically
fixed by the Commission on the basis of objective
criteria and published in the Official Journal of the Euro-
pean Union and on the Internet.

In order to ensure transparency and effective moni-
toring, this Regulation should apply only to regional
investment aid schemes which are transparent. There-
should always notify to the
fore, Member States
Commission regional aid schemes which are not trans-
parent,
i.e. aid schemes in which it is not possible to
calculate precisely the gross grant equivalent as a percen-
tage of eligible expenditure ex ante without a need to
undertake a risk assessment. Examples of such aid
schemes are schemes involving public loans, state guar-
antees containing elements of aid and public participa-
tions which do not meet the market economy investor
principle. Notifications of non transparent regional aid
schemes will be assessed by the Commission in particu-
lar in the light of the criteria set out in the Guidelines on
national regional aid for 2007-2013.

(1) OJ L 142, 14.5.1998, p. 1.
(2) OJ C
(3) OJ C
(4) OJ C 70, 19.3.2002, p. 8, as modified in OJ C 263, 1.11.2003, p.

(6)

3.

(5) OJ L 10, 13.1.2001, p. 33. Regulation as amended by Regulation

(EC) No 364/2004 (OJ L 63, 28.2.2004, p. 22).

Any aid granted under a scheme that meets all the rele-
this Regulation should also be
vant requirements of
exempted from the notification requirement. Regional
aid schemes exempted under this Regulation should
contain an express reference to this Regulation.

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(7)

(8)

(9)

Aid which does not fall within the scope of this Regu-
lation or of other Regulations adopted pursuant
to
Article 1 of Regulation (EC) No 994/98, shall be notified
to the Commission in accordance with Article 88(3) of
the Treaty. Such aid shall be assessed in particular in
accordance with the criteria laid down in the Com-
munity guidelines on national regional aid for 2007-
2013.

This Regulation should not apply to certain sectors in
which special rules apply. Aid awarded in these sectors
remains subject to prior notification to the Commission
in accordance with Article 88(3) of the Treaty. This is
the case for, the coal and steel industry, the synthetic
fibres and shipbuilding sectors, fisheries and aquaculture.
In the agricultural sector, this Regulation should not
apply to activities linked to the primary production
(farming) of products listed in Annex I to the Treaty; it
should apply to the processing and marketing of agri-
cultural products with the exception of the manufacture
and marketing of products which imitate or substitute
for milk and milk products, as referred to in Article 3(2)
of Regulation (EEC) No 1898/87 of 2 July 1987 on the
protection of designations used in marketing of milk and
milk products (1).

The Commission has a consistently less favourable view
Investment aid
of aid targeted at particular sectors.
schemes which are targeted at specific sectors should
not therefore be covered by the exemption from notifi-
cation provided by this Regulation. The Commission
in line with its constant practice, the
recognises that,
tourism sector plays an important
role in national
economies and in general has a particularly positive
effect on regional development. Therefore,
regional
investment aid schemes aimed at
tourism activities
should not be considered as targeted at specific sectors
and should be exempt from the notification requirement
of Article 88(3) of the Treaty, provided that the aid
awarded fulfils all the conditions of this Regulation.

(10) Aid to small and medium-sized enterprises for consul-
tancy and other services awarded in accordance with
Article 5(a) of Regulation (EC) No 70/2001 is compa-
tible with the common market within the meaning of
Article 87(3) of the Treaty and is exempted from the
notification requirement of Article 88(3) of
the EC
Treaty.

(11)

It should be recalled that individual aid grants to small
and medium-sized enterprises granted outside of any aid
scheme in accordance with Article 6 of Regulation (EC)
No 70/2001 is compatible with the common market
within the meaning of Article 87(3) of the Treaty and is
exempted from the notification requirement of Article
88(3) of the Treaty. However, it is necessary to ensure

that individual aid grants to large companies granted
outside of any aid scheme (ad hoc aid) remain subject to
the notification requirements of Article 88(3) of
the
Treaty.

(12)

(13)

(14)

This Regulation is without prejudice to any obligation
on a Member State to notify individual grants of aid
under obligations entered into in the context of other
State aid instruments, and in particular the obligation to
notify, or to inform the Commission of, aid to an enter-
prise receiving rescue and restructuring aid within the
meaning of the Community guidelines on State aid for
rescuing and restructuring firms in difficulty (2).

In accordance with the established practice of
the
Commission, and with a view to better ensuring that aid
is proportionate and limited to the amount necessary,
thresholds should be expressed in terms of aid intensities
in relation to a set of eligible costs, rather than in terms
of maximum aid amounts.

It
is appropriate to establish further conditions that
should be fulfilled by any aid scheme or individual aid
exempted by this Regulation. Having regard to Article
87(3)(c) of the Treaty, such aid should not normally
have the sole effect of continuously or periodically redu-
cing the operating costs which the beneficiary would
normally have to bear, and should be proportionate to
the handicaps that have to be overcome in order to
secure the socioeconomic benefits deemed to be in the
Community interest. It is therefore appropriate to limit
the scope of this Regulation to regional aid granted in
relation to initial
investments in the meaning of this
Regulation. Regional aid schemes which provide for
operating aid and for aid to newly created small enter-
prises remain subject to the notification requirements of
Article 88(3) of the Treaty.

(15) Whereas the Commission has to ensure that authorized
aid does not alter trading conditions in a way contrary
to the general interest, investment aid awarded in favour
to an outstanding
of a beneficiary which is subject
recovery order following a previous Commission deci-
sion declaring the aid illegal and incompatible with the
common market, should be excluded from the scope of
this Regulation. Therefore, such aid remains subject to
the
the notification requirements of Article 88(3) of
Treaty.

(16)

In order not to favour the capital factor of an investment
over the labour factor, provision should be made for the
possibility of measuring aid to investment on the basis
of either the investment costs or the costs of new
employment directly linked to the carrying-out of the
investment project.

(1) OJ L 182, 3.7.1987, p. 36. Regulation as last amended by 1994 Act

of Accession.

(2) OJ C 244, 1.10.2004, p. 2.

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(17)

Large amounts of aid should remain subject to an indivi-
dual assessment by the Commission before they are put
into effect. Accordingly, aid amounts exceeding a certain
threshold granted to a single enterprise or establishment
on the basis of an existing aid scheme should be
excluded from the exemption provided for in this Regu-
lation and remain subject to the notification require-
ments of Article 88(3) of the Treaty.

(18)

incentive effect

It is important to ensure that regional aid produces a
to undertake investments which
real
would not otherwise be made in the assisted areas and
acts as an incentive to develop new activities.

(19)

(20)

(21)

This Regulation should not exempt aid cumulated with
other State aid,
including aid granted by national,
regional or local authorities, or with Community assis-
tance, in relation to the same eligible costs or investment
project, when such cumulation exceeds the thresholds
fixed in this Regulation. Regional
aid
exempted under this Regulation shall not be cumulated
with de minimis support within the meaning of Regu-
lation (EC) No 69/2001 of 12 January 2001 on the
application of Articles 87 and 88 of the EC Treaty to de
minimis aid (1) in respect of the same eligible expenditure
or investment project, if such cumulation would result
in an aid intensity exceeding that fixed by this Regu-
lation.

investment

In the light of the World Trade Organisation Agreement
on Subsidies and Countervailing Measures (2), this Regu-
lation should not exempt export aid or aid favouring
domestic over imported products. Such aid would be
incompatible with the Community's international obliga-
tions under that Agreement and should not therefore be
exempted from notification.

In order to ensure transparency and effective monitoring
in accordance with Article 3 of Regulation (EC) No
994/98, it is appropriate to establish a standard format
to be used by Member States to provide the Commission
with summary information whenever,
in pursuance of
this Regulation, an aid scheme is implemented with a
view to publication in the Official Journal of the European
Union. For the same reasons, it is appropriate to establish
rules concerning the records that Member States should
keep regarding the aid scheme exempted by this Regu-
lation. In order to facilitate administrative treatment and
in view of the wide availability of the necessary tech-
nology, the summary information should be provided in
computerised form. In order to improve the transpar-
ency of regional aid in an enlarged Community, Member
States should publish the full text of the aid scheme and
communicate to the Commission the internet address of
the publication.

(22)

In the light of the Commission's experience in this area,
and in particular the frequency with which it is generally
necessary to revise State aid policy, it is appropriate to
limit the period of application of this Regulation.

HAS ADOPTED THIS REGULATION:

Article 1

Scope

1.
This Regulation shall apply to transparent regional invest-
ment aid schemes which constitute State aid within the
meaning of Article 87(1) of the Treaty.

This Regulation shall not apply to aid in the following

2.
sectors:

— the fisheries sector,

— the shipbuilding sector,

— the coal and steel industry,

— the synthetic fibres sector.

It shall not apply to activities linked to the primary production
(farming) of products listed in Annex I to the Treaty; it shall
apply to the processing and marketing of agricultural products
to the exclusion of the manufacture and marketing of products
which imitate or substitute for milk and milk products, as
referred to in Article 3 (2) of Council Regulation (EEC) No
1898/87 (3).

This Regulation shall not apply to the following types of

3.
aid:

(a) aid to export-related activities, namely aid directly linked to
the quantities exported, to the establishment and operation
of a distribution network or to other current expenditure
linked to the export activity;

(b) aid contingent upon the use of domestic in preference to

imported goods.

Aid which does not fall within the scope of this Regu-
4.
lation or of other Regulations adopted pursuant to Article 1 of
Regulation (EC) No 994/98, shall be notified to the Commis-
sion in accordance with Article 88(3) of the Treaty. Such aid
will be assessed in accordance with the criteria laid down in the
Community guidelines on national regional aid for 2007-2013.

(1) OJ L 10, 13.01.2001, p. 30.
(2) OJ L 336, 23.12.1994, p. 156.

(3) OJ L 182, 3.7.1987, p. 36. Regulation as last amended by 1994 Act

of Accession.

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Article 2

Definitions

For the purpose of this Regulation the following definitions
shall apply:

(a) ‘aid’ means any measure fulfilling all the criteria laid down

in Article 87(1) of the Treaty;

(b) ‘small and medium-sized enterprises (SMEs)’ means small
and medium-sized enterprises as defined in Annex I to
Regulation (EC) No 364/2004 (1);

(c) ‘initial investment’ means:

— an investment

in material and immaterial assets
relating to the setting-up of a new establishment, the
extension of an existing establishment, diversification
of the output of an establishment into new additional
products or a fundamental change in the overall
production process of an existing establishment; or

— the acquisition of the capital assets directly linked to
an establishment, where the establishment has closed
or would have closed had it not been purchased, and
the assets are bought by an independent investor.

The sole acquisition of the shares of the legal entity of an
enterprise does not constitute initial investment.

months, after deducting any jobs lost during that 12
month period in the same establishment.

(k) ‘Number of employees’ means the number of annual
labour units, namely the number of persons employed full
time in one year, part-time and seasonal work being ALU
fractions;

(l) ‘Wage cost’ means the total amount actually payable by
the beneficiary of the aid in respect of the employment
concerned, comprising the gross wage, before tax, and the
compulsory social security contributions;

(m) ‘Jobs directly created by an investment project’ means jobs
concerning the activity to which the investment relates
and created within three years of completion of the invest-
ment, including jobs created following an increase in the
utilisation rate of the capacity created by the investment.

(n) ‘Agricultural product’ means

— the products listed in Annex I of the Treaty, except
fishery and acquaculture products covered by Regu-
lation (EC) No 104/2000;

— products falling under CN codes 4502, 4503 and 4505

(cork products);

— products intended to imitate or substitute milk and
milk products, as referred to in Article 3 (2) of Council
Regulation (EEC) No 1898/87 (2);

(d) ‘material assets’ means assets relating to land, buildings and

plant/machinery.

(e) ‘immaterial assets’ means assets entailed by the transfer of
rights,

technology through the acquisition of patent
licences, know-how or unpatented technical knowledge;

(f) ‘large investment project’ means an initial

investment in
capital assets with an eligible expenditure above EUR 50
million, calculated at prices and exchange rates on the date
when the aid is granted

(o) ‘products intended to imitate or substitute milk and milk
products’ mean products which could be confused with
milk and/or milk products but whose composition differs
from such products in that they contain fat and/or protein
of non-milk origin with or without protein derived from
milk (‘products other than milk products’ as referred to in
Article 3(2) of Council Regulation (EEC) No 1898/87);

(p) ‘processing of an agricultural product’ means an operation
on an agricultural product resulting in a product which is
also an agricultural product;

(g) ‘aid intensity in present gross grant equivalent

(GGE)’
means the discounted value of the aid expressed as a
percentage of the discounted value of the eligible costs.

(q) ‘marketing of an agricultural product’ means holding or
display with a view to sale, offering for sale, delivery or
any other manner of placing on the market.

(h) ‘transparent

regional

investment aid schemes’ means
regional investment aid schemes in which it is possible to
calculate precisely the Gross grant equivalent as a percen-
tage of eligible expenditure ex ante without need to under-
take a risk assessment;

(i) ‘Start of work’ means either the start of construction work
equipment,

firm commitment

or
excluding preliminary feasibility studies;

to order

first

the

(j) ‘Job creation’ means a net

increase in the number of
employees (ALU) directly employed in a particular estab-
lishment compared with the average over the previous 12

Article 3

Conditions for exemption

1.
Transparent regional investment aid schemes fulfilling all
the conditions of this Regulation shall be compatible with the
common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement
of Article 88(3) of the Treaty provided that:

(1) OJ L 63, 28.2.2004, p. 22.

(2) OJ L 182, 3.7.1987, p. 36.

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(a) any aid awarded under such a scheme fulfils all the condi-

tions of this Regulation;

(b) the scheme contains an express reference to this Regu-
lation, citing its title and publication reference in the Official
Journal of the European Union.

2.
Aid up to the amount determined in accordance with
Article 7(4) awarded on the basis of schemes referred to in
paragraph 1 of
this Article shall be compatible with the
common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement
of Article 88(3) of the Treaty provided that the aid awarded
directly fulfils all the conditions of this Regulation.

Article 4

Aid for initial investment

Aid for initial

investment shall be compatible with the
1.
common market within the meaning of Article 87(3) of the
Treaty and shall be exempt from the notification requirement
of Article 88(3) of the Treaty provided that:

(a) the aid is granted in regions eligible for regional aid, as
determined in the approved regional aid map for the
Member State concerned for the period 2007-2013;

(b) the gross aid intensity does not exceed the regional aid
ceiling which is in force at the time of the investment for
the region in which the investment takes place, as deter-
mined in the approved regional aid map for the Member
State concerned for the period 2007-2013; and

(c) all the other conditions of this Regulation are fulfilled.

2. With the exception of aid granted in favour of large
investment projects, the ceilings provided for in paragraph 1
may be increased by 20 % GGE for aid awarded to small enter-
prises and by 10 % GGE for aid awarded to medium-sized
enterprises.

contribution of at least 25 % of the eligible costs, either
through its own resources or by external financing,
in a
form which is free of any public support.

The condition in point (a) shall not prevent the replacement of
plant or equipment which has become out-dated within the
above period due to rapid technological change, provided the
economic activity is retained in the region concerned for the
minimum period.

The ceilings fixed in paragraphs 1 and 2 shall apply to
4.
the intensity of the aid calculated either as a percentage of the
investment's eligible material and immaterial costs or as a
percentage of the estimated wage costs of the person hired,
calculated over a period of two years, for jobs directly created
by the investment project, or a combination thereof, provided
the aid does not exceed the most favourable amount resulting
from the application of either calculation.

instalments shall be discounted to its value at

5.
The eligible investment costs shall be discounted to their
value at the moment of granting of the aid. Aid payable in
several
the
moment of granting of the aid. The interest rate to be used for
discounting purposes shall be the reference rate applicable at
the time of grant. In cases where aid is awarded by means of
tax exemptions or reductions on future taxes due, subject to
the respect of a certain aid intensity defined in GGE,
discounting of aid tranches takes place on the basis of the refer-
ence rates applicable at the various times the tax advantages
become effective.

In case of acquisition of an establishment, only the costs
6.
of buying assets from third parties should be taken into consid-
eration, provided the transaction has taken place under market
conditions. Where the acquisition is accompanied by other
initial investment, the expenditure relating to the latter should
be added to the cost of the purchase.

3.

The aid shall satisfy the following conditions:

(a) the investment must be maintained in the recipient region
for at least five years after completion of the works or three
years in the case of SMEs;

(b) the eligible immaterial assets must satisfy the following

requirements:

7.
Costs related to the acquisition of assets under lease,
other than land and buildings, shall only be taken into consid-
eration if the lease takes the form of financial
leasing and
contains an obligation to purchase the asset at the expiry of the
term of the lease. For the lease of land and buildings, the lease
must continue for at least five years after the anticipated date
of the completion of the investment project or three years in
the case of SMEs.

— they must be used exclusively in the establishment

receiving the regional aid,

— they must be regarded as amortizable assets,

— they must be purchased from third parties under

market conditions,

— they must be included in the assets of the firm and
remain in the establishment receiving the regional aid
for at least five years or three years in the case of SMEs;

(c) where the aid is calculated on the basis of material or
immaterial investment costs, or of acquisition costs in case
the beneficiary must provide a financial
of

takeovers,

In the transport sector, expenditure on the purchase of
8.
transport equipment (movable assets) shall not be eligible for
aid for initial investment.

Except

9.
in the case of SMEs and takeovers, the assets
acquired should be new. In the case of takeovers, assets for the
acquisition of which aid has already been granted prior to the
purchase shall be deducted. For SMEs, the full costs of invest-
ments in immaterial assets may also be taken into considera-
tion. For large companies, such costs are eligible only up to a
limit of 50 % of the total eligible investment expenditure for
the project.

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10. Where the aid is calculated on the basis of wage costs,
the following conditions shall be satisfied:

whether that support is financed from local, regional, national
or Community sources.

(a) jobs must be directly created by an investment project;

(b) jobs must be created within three years of the completion
of works and shall be maintained during a minimum
period of five years from the date the post was first filled or
three years in the case of SMEs.

11.
By way of derogation from paragraphs (1) and (2) of
this Article, the maximum aid intensities for investments in the
processing and marketing of agricultural products may be
increased to:

(a) 50 % of eligible investments in regions eligible under
87(3)(a) of the Treaty and 40 % of eligible investments in
other regions eligible for regional aid, as determined in the
regional
the Member States
concerned for the period 2007-2013, if the beneficiary is a
small or medium-sized enterprise;

aid map approved for

(b) 25 % of eligible investments in regions eligible under
87(3)(a) of the Treaty and 20 % of eligible investments in
other regions eligible for regional aid, as determined in the
regional
the Member States
concerned for the period 2007-2013, if the beneficiary has
less than 750 employees and less than EUR 200 million
turnover.

aid map approved for

Article 5

Necessity for the aid

if

investment

aid schemes

This Regulation shall only exempt aid awarded under
1.
regional
the beneficiary has
submitted an application for aid and the authority responsible
for administering the scheme has confirmed in writing that,
subject to detailed verification, the project in principle meets
the conditions of eligibility laid down by the scheme before the
start of work on the project. An express reference to both
conditions must also be included in the aid scheme.

If work begins before the conditions laid down in this Article
are fulfilled, the whole project will not be eligible for regional
aid.

2.
Paragraph 1 of this Article shall not apply to approved
tax aid schemes where a tax exemption or reduction is granted
automatically to qualifying expenditure without any discretion
on the part of the authorities.

Article 6

Cumulation

2.
Aid exempted by this Regulation shall not be cumulated
with any other State aid within the meaning of Article 87(1) of
the Treaty or with other Community or national funding, in
relation to the same eligible costs or investment project, if such
cumulation would result in an aid intensity exceeding that fixed
by this Regulation.

Regional investment aid exempted under this Regulation
3.
shall not be cumulated with de minimis support within the
meaning of Regulation (EC) No 69/2001 of 12 January 2001
on the application of Articles 87 and 88 of the EC Treaty to de
minimis aid (1) in respect of the same eligible expenditure or
investment project, if such cumulation would result in an aid
intensity exceeding that fixed by this Regulation.

Article 7

Aid subject to prior notification to the Commission

The following aid shall not be exempted from notification
under this Regulation and shall remain subject to the notifica-
tion requirement of Article 88(3) of the Treaty:

(1) non transparent regional investment aid schemes;

(2) regional aid schemes targeted at particular sectors. Regional
investment aid schemes aimed at tourism activities should
not be considered as targeted at specific sectors. The
tourism sector covers the following business activities in
terms of NACE Rev. 1.1:

— NACE 55: Hotels and restaurants,

— [NACE 63.3: Activities of travel agencies & tour opera-

tors, tourist assistance activities, ]

— NACE 92: Recreational, cultural and sporting activities,

(3) regional aid schemes which provide for operating aid and

for aid to newly created small enterprises,

(4) regional aid awarded in favour of large investment projects
on the basis of existing aid schemes if the total amount of
aid from all sources exceeds 75 % of the maximum amount
of aid an investment with eligible expenditure of EUR 100
million could receive, applying the standard aid ceiling in
force for large enterprises in the approved regional aid map
on the date the aid is to be granted,

(5) ad hoc regional aid awarded outside any aid scheme,
without prejudice of Article 6 of Regulation (EC) No
70/2001,

1.
The aid ceilings fixed in Article 4 shall apply to the total
amount of public support for the aided project regardless of

(1) OJ L 10, 13.01.2001, p. 30.

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(6) investment aid in favour of a beneficiary which is subject
to an outstanding recovery order following a previous
Commission decision declaring the aid illegal and incompa-
tible with the common market.

4. Member States shall compile a report on the application
of this Regulation in respect of each whole or part calendar
year during which this Regulation applies,
in the form laid
III of Commission Regulation (EC) No
down in Chapter
794/2004 (1).

Article 8

Transparency and monitoring

1.
On implementation of an aid scheme exempted by this
Regulation, Member States shall, within 20 working days,
forward to the Commission, with a view to its publication in
the Official Journal of the European Union, a summary of the
information regarding such aid scheme in the form laid down
in Annex I. This shall be provided electronically in compu-
terised form.

2. Whenever regional aid is granted on the basis of an
existing aid schemes for large investment projects which fall
below the threshold for individual notification laid down by
Article 7(4), the Member States shall, within 20 working days
starting from the day on which the aid is granted by the
competent authority, provide the Commission with the infor-
mation requested in the standard form laid down in Annex II,
electronically in computerised form. The Commission will
make the summary information available to the public through
its website (http://europa.eu.int/comm/competition/).

3. Member States shall maintain detailed records regarding
the aid schemes exempted by this Regulation and the individual
aid awarded under those schemes. Such records shall contain
all information necessary to establish that the conditions for
exemption, as laid down in this Regulation, are fulfilled,
including information on the status of any company whose
entitlement to aid depends on its status as an SME. Member
States shall keep a record regarding an aid scheme, for 10 years
from the date on which the last individual aid was awarded
the Member State
under such scheme. On written request,
concerned shall provide the Commission, within a period of 20
working days or such longer period as may be fixed in the
request, with all
the information which the Commission
considers necessary to assess whether the conditions of this
Regulation have been complied with.

text of

5. Member State shall publish the full
the aid
schemes which fall within the scope of this Regulation and
shall communicate to the Commission the internet address of
the publication. That information shall also be contained in the
annual report submitted pursuant
this
Article. Projects for which expenses were incurred before the
date of publication of the aid scheme shall not be eligible for
regional aid.

to paragraph 4 of

Article 9

Entry into force and period of validity

1.
This Regulation shall enter into force on the twentieth
day following that of its publication in the Official Journal of the
European Union. It shall apply to aid schemes which will enter
into force, or are put into effect, after 31 December 2006. It
shall remain in force until it is replaced by a new Regulation or
until 31 December 2013, whichever is earlier.

2.
Notifications pending at the time of entry into force of
this Regulation shall be assessed in accordance with its provi-
sions. Aid schemes put into effect before the date of entry into
force of this Regulation and aid granted under those schemes,
in the absence of a Commission authorisation and in breach of
the obligation to notify laid down in Article 88(3) of the
Treaty, shall be compatible with the common market within
the Treaty and shall be
the meaning of Article 87(3) of
exempted under this Regulation if they fulfil all the conditions
of this Regulation.

3.
At the end of the period of validity of this Regulation, the
exemption for aid schemes exempted under this Regulation
shall expire at the date of expiry of the approved regional aid
maps.

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

(1) OJ L 140, 30.4.2004, p. 1.

20.5.2006

EN

Official Journal of the European Union

C 120/9

ANNEX I

C 120/10

EN

Official Journal of the European Union

20.5.2006

Form for the provision of summary information for aid for large investments projects where the aid does not
exceed the thresholds referred to in Article 7(4)

ANNEX II

1. Aid in favour of (name of the company/companies receiving the aid)

2. Aid scheme reference (Commission reference of the existing scheme or schemes under which the aid is awarded)

3. Public entity/entities providing the assistance (name and co-ordinates of the granting authority or authorities)

4. Member State where the investment takes place

5. Region (NUTS 3 level) where the investment takes place

6. Municipality (previously NUTS 5 level, now LAU 2) where the investment takes place

7. Type of project (setting-up of a new establishment, extension of existing establishment, diversification of the output
of an establishment into new additional products or a fundamental change in the overall production process of an
existing establishment)

8. Products manufactured or services provided on the basis of the investment project (with PRODCOM/NACE nomen-

clature or CPA nomenclature for projects in the service sectors)

9. Short description of investment project

10. Discounted eligible cost of investment project (in EUR)

11. Discounted aid amount (gross) in EUR

12. Aid intensity (% in GGE)

13. Conditions attached to the payment of the proposed assistance (if any)

14. Planned start and end date of the project

15. Date of award of the aid