Invitation to submit comments on the draft Commission Regulation on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products
Date: 2007-10-23
Institutions: European Commission
Subjects: State aid, aid system, control of State aid, exchange of information, fishery product, small and medium-sized enterprises

23.10.2007

EN

Official Journal of the European Union

C 248/13

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION
POLICY

COMMISSION

Invitation to submit comments on the draft Commission Regulation on the application of Arti-
cles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the
production, processing and marketing of fisheries products

(2007/C 248/10)

Interested parties may submit their comments within one month of the date of publication of this draft
Regulation to:

European Commission
Directorate-General for Fisheries and Maritime Affairs
DG FISH-D3 (Legal issues)
Rue Joseph II, 99
B-1049 Brussels
Fax (32-2) 295 19 42
E-mail: fish-aidesdetat@ec.europa.eu

The text will also be available on the following website:

http://ec.europa.eu/fisheries/legislation/state_aid_en.htm

DRAFT COMMISSION REGULATION (EC) No …/…

of …

on application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enter-
prises active in the production, processing and marketing of fisheries products

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(1)

Regulation (EC) No 994/98 empowers the Commission to
declare, in accordance with Article 87 of the Treaty, that,
under certain conditions, aid to small and medium-sized
enterprises is compatible with the common market and
not
of
Article 88(3) of the Treaty.

requirement

notification

subject

the

to

Having regard to the Treaty
Community,

establishing the European

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 Article 1(1)(a)(i)
thereof,

Having published a draft of this Regulation (2),

Having consulted the Advisory Committee on State aid,

Whereas:

(1) OJ L 142, 14.5.1998, p. 1.
(2) OJ C 248, 23.10.2007, p. 13.

(2)

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-sized enter-
prises (3) does not apply to activities linked to the
production, processing or marketing of fishery and aqua-
culture products covered by Council Regulation (EC)
No 104/2000 on the common organisation of
the
markets in fishery and aquaculture products (4).

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

(EC) No 1857/2006 (OJ L 358, 16.12.2006, p. 3).

(4) OJ L 17, 21.1.2000, p. 22. Regulation as last amended by Regulation

(EC) No 1759/2006 (OJ L 335, 1.12.2006, p. 3).

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(3)

(4)

(5)

(6)

(7)

The Commission has applied Articles 87 and 88 of the
Treaty in numerous decisions to small and medium-sized
enterprises active in the production, processing and
marketing of fisheries products and has also stated its
policy, most recently in the Guidelines for the examina-
tion of State aid to fisheries and aquaculture (1) (hereafter
referred to as the ‘Fisheries Guidelines’). In the light of
the Commission's considerable experience in applying
those Articles to small and medium-sized enterprises
active in the production, processing and marketing of
fisheries products,
is appropriate, with a view to
ensuring efficient supervision and simplifying administra-
tion without weakening Commission monitoring, that
the Commission should make use of
the powers
conferred by Regulation (EC) No 994/98 also for small
and medium-sized enterprises active in the production,
processing and marketing of fisheries products, insofar as
Article 89 of the Treaty has been declared applicable to
such products.

it

The compatibility of State aid in the fisheries sector is
assessed by the Commission on the basis of the objec-
tives of both the Competition Policy and the Common
Fisheries Policy (CFP).

This Regulation should cover types of aid granted in the
fisheries sector which have been routinely approved by
the Commission for many years. This aid does not
its compatibility
require a case by case assessment of
with the
from the Commission,
common market
provided that it complies with the conditions laid down
in Council Regulation (EC) No 1198/2006 of 27 July
2006 on the European Fisheries Fund (2) and with
certain other
conditions. Although Regulation (EC)
No 1198/2006 has only been in force from 4 September
the Commissions has gained on the basis of
2006,
existing Fisheries Guidelines
sufficient experience in
applying similar conditions for the type of measures
concerned in order to establish that the conditions of
that Regulation are sufficiently accurate to justify not
requiring case by cases assessment.

This Regulation should be without prejudice to the possi-
bility for Member States of notifying aid to small and
in the production,
medium-sized enterprises
processing and marketing of
fisheries products. Such
notifications should be assessed by the Commission in
the light of this Regulation and on the basis of the Fish-
eries Guidelines.

active

Aid that Member States intend to grant in the fisheries
sector but which do not fall within the scope of this
Regulation, or of other Regulations adopted pursuant to
Article 1 of Regulation (EC) No 994/98, should remain
subject to the notification requirement of Article 88(3) of
the Treaty. Such aid will be assessed in the light of this
Regulation and the Fisheries Guidelines.

(1) OJ C 229, 14.9.2004, p. 5.
(2) OJ L 223, 15.8.2006, p. 1.

(8)

(9)

(10)

This Regulation should exempt any aid that meets all the
requirements it lays down, and any aid scheme, provided
that any aid that could be granted under such scheme
meets all the relevant requirements of this Regulation.
Aid schemes and individual grants outside any aid
scheme should contain an express reference to this Regu-
lation.

In the interests of coherence with Community-financed
support measures,
aid covered by
this Regulation should be equal to those fixed for the
same kind of aid in Annex II
to Regulation (EC)
No 1198/2006.

ceilings of

the

It is essential that no aid is granted in circumstances
where Community law, and in particular rules of the
Common Fisheries Policy, are not complied with. An aid
can therefore only be granted by a Member State in the
fisheries sector if the measures financed and their effects
comply with Community law. Before granting any aid,
Member States should ensure that beneficiaries of State
the Common Fisheries
aid comply with the rules of
Policy.

thresholds

(11) With a view to ensuring that aid is proportionate and
limited to the amount necessary,
should,
whenever possible, be expressed in terms of aid intensi-
ties in relation to a set of eligible costs. For the purpose
of calculating aid intensities, aid payable in several instal-
ments should be discounted to its value at the moment
of granting. The interest rate to be used for discounting
purposes and for calculating the aid amount in aid not
taking the form of a grant, should be the reference rate
applicable at the time of grant. Because it is based on a
form of aid for which eligible costs are difficult to iden-
tify, the threshold with regard to aid in the form of risk
capital should be formulated in terms of maximum aid
amounts.

(12)

(13)

In view of the need to strike the appropriate balance
between minimising distortions of competition in the
aided sector and the objectives of
it
should not exempt individual grants which exceed a fixed
maximum amount, whether or not made under an aid
scheme exempted by this Regulation.

this Regulation,

This Regulation should not apply to export-related
activities or aid favouring domestic over
imported
products. In particular, it should not apply to aid finan-
cing the establishment and operation of a distribution
network in other countries. Aid towards the cost of parti-
cipating in trade fairs, or of studies or consultancy
services needed for the launch of a new or existing
product on a new market does not normally constitute
export aid.

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(14) Aid granted to undertakings in difficulty within the
meaning of the Community guidelines on State aid for
rescuing and restructuring firms in difficulty (1) should be
assessed under those Guidelines in order to avoid circum-
vention of these guidelines.

(21)

(15)

(16)

(17)

The Commission has to ensure that authorised aid does
not alter trading conditions in a way contrary to the
general interest. Therefore, aid in favour of a beneficiary
which is
to an outstanding recovery order
following a previous Commission decision declaring an
aid illegal and incompatible with the common market,
should be excluded from the scope of this Regulation.

subject

In order to eliminate differences that might give rise to
distortions of competition and to facilitate coordination
between different Community and national
initiatives
concerning small and medium-sized enterprises, the defi-
nition of ‘small and medium-sized enterprises’ used in
this Regulation should be that laid down in Annex I to
Regulation (EC) No 70/2001.

For the purpose of transparency, equal treatment and
effective monitoring, this Regulation should apply only
to aid which is transparent. Transparent aid is aid for
which it is possible to calculate precisely the gross grant
equivalent ex ante without a need to undertake a risk
assessment.

(22)

(18) Having regard to Article 87(3)(c) of the Treaty, aid should
not normally have the sole effect of continuously or peri-
odically reducing the operating costs which the benefi-
ciary would normally have to bear, and should be
proportionate to the handicaps that have to be overcome
in order to secure the socio-economic benefits deemed to
be in the Community interest. State aid measures which
simply seek to improve the financial situation of produ-
cers but which in no way contribute to the development
of the sector, and in particular aid which is granted solely
on the basis of price, quantity, unit of production or unit
of the means of production are considered to constitute
operating aid which are incompatible with the common
market. Furthermore, such aid is also likely to interfere
with the mechanisms of the common organisations of
the markets. It is therefore appropriate to limit the scope
of this Regulation to aid for investments, as well as to aid
for certain socio-economic measures.

(23)

(19)

(20)

In order to ensure that the aid is necessary and acts as an
this Regulation
incentive to develop certain activities,
should not apply to aid for activities in which the benefi-
ciary would already engage under market conditions
alone.

In order to determine whether the individual notification
thresholds and the maximal aid intensities laid down in
this Regulation are respected, the total amount of public
support for the aided activity or project should be taken
is
into account,

regardless of whether

support

that

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

financed from local, regional, national or Community
sources.

This Regulation should cover the following aid: aid for
permanent and temporary cessation of fishing activities,
aid for the financing of socio-economic measures, aid for
productive investments in aquaculture, aid for aqua-envir-
onmental measures, aid for public health and animal
health measures, aid for inland fishing, aid for processing
and marketing of fisheries and aquaculture products, aid
for measures of common interest which are implemented
with the active support of operators themselves or by
organisations acting on behalf of producers or other
organisation recognised by the Member States, aid for
measures of common interest intended to protect and
develop aquatic fauna and flora while enhancing the
aquatic environment, aid for investments in public or
private fishing ports,
landing sites and fishing shelters,
aid for measures of common interest intended to imple-
ment a policy of quality and value enhancement, develop-
ment of new markets or promotional campaigns for fish-
eries and aquaculture products, aid for pilot projects, aid
for modification for reassignment of fishing vessels, and
aid for technical assistance.

to Article 15 of

For the purpose of legal certainty, tax exemptions applic-
able to the whole fisheries sector which Member States
the sixth
may introduce pursuant
Council Directive 77/388/EEC of 17 May 1977 on the
harmonisation of the laws of Member States relating to
turnover taxes — Common system of value added tax:
uniform basis of assessment (2), or to Article 14 or
Article 15 of Council Directive 2003/96/EC of
27 October 2003 restructuring the Community frame-
work for the taxation of energy products and electri-
city (3) should, to the extent they constitute State aid, be
declared compatible with the common market and
exempt from the notification requirement of Article 88(3)
of the Treaty. Tax exemption which Member States are
obliged to introduce according to those provisions do
not constitute State aid.

it

In order to ensure transparency and effective monitoring,
in accordance with Article 3 of Regulation (EC)
No 994/98,
is appropriate to establish a standard
in which Member States should provide the
format
Commission with summary information whenever,
in
pursuance of this Regulation, an aid scheme or individual
aid is implemented. The Commission will attribute an
identification number
to each aid measure which is
communicated to it. The fact that such number is attrib-
uted to an aid measure does not imply that the Commis-
sion has examined whether the aid fulfils the conditions
It creates therefore no legitimate
of
expectations for
the Member State or beneficiary as
regards the compatibility of the aid measures with this
Regulation.

this Regulation.

(2) OJ L 145, 13.6.1977, p. 1. Directive as last amended by Directive

2006/18/EC (OJ L 51, 22.2.2006, p. 12).

(3) OJ L 283, 31.10.2003, p. 51. Directive as last amended by Directive

2004/75/EC (OJ L 159, 2.6.2004, p. 31).

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(24)

For the same reasons, the Commission should establish
specific requirements as regards the form and the content
of the annual reports to be submitted to the Commission
by Member States. Moreover, it is appropriate to establish
rules concerning the records that Member States should
keep regarding the aid schemes and individual aid
exempted by this Regulation.

that

(25) Having regard to the expiry date of Regulation (EC)
No 1198/2006 and the fact
the conditions for
granting aid under this Regulation have been aligned
with the conditions established for the application of the
it is appropriate to limit the
European Fisheries Fund,
period of application of this Regulation to the date on
which Regulation (EC) No 1198/2006 expires. Should
this Regulation expire without being extended, aid
schemes already exempted by this Regulation should
continue to be exempted for six months.

(26)

It is appropriate to lay down transitional provisions for
notifications pending on the date of entry into force of
this Regulation and for aid which was granted before the
entry into force of this Regulation and was not notified
in breach of the obligation in Article 88(3) of the Treaty,
as well as for aid fulfilling the conditions of Commission
Regulation (EC) No 1595/2004 of 8 September 2004 on
the application of Articles 87 and 88 of the EC Treaty to
State aid to small and medium-sized enterprises active in
the production, processing and marketing of
fisheries
products (1),

(d) aid granted to undertakings in difficulty;

(e) aid schemes which do not explicitly exclude the payment of
individual aid in favour of a beneficiary which is subject to
an outstanding
a previous
Commission decision declaring an aid illegal and incompa-
tible with the common market, as well as individual aid in
favour of the same beneficiary;

recovery order

following

(f) ad hoc individual aid in favour of an undertaking which is
subject
following a
to an outstanding recovery order
previous Commission decision declaring an aid illegal and
incompatible with the common market.

This Regulation shall not apply to aid for

3.
individual
projects with eligible expenses in excess of EUR 2 million, or
where the amount of aid exceeds EUR 1 million per beneficiary
per year.

4.
This Regulation shall only apply to aid which has an
incentive effect. This shall be the case for activities or projects
which the beneficiary would not have carried out as such in the
absence of that aid.

Article 2

Definitions

HAS ADOPTED THIS REGULATION:

For the purpose of this Regulation:

CHAPTER I

GENERAL PROVISIONS

Article 1

Scope

1.
This Regulation shall apply to transparent aid granted to
small and medium-sized enterprises active in the production,
processing or marketing of fisheries products.

2.

This Regulation shall not apply to:

(a) aid the amount of which is fixed on the basis of price or

quantity of products put on the market;

(b) aid to export-related activities, namely aid directly linked to
the quantities exported aid to the establishment and opera-
tion of a distribution network or to other current expendi-
ture linked to the export activity of Member States;

(c) aid contingent upon the use of domestic over imported

goods;

(1) OJ L 291, 14.9.2004, p. 3.

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

in Article 87(1) of the Treaty;

(b) ‘aid scheme’ means any act on the basis of which, without
further implementing measures being required,
individual
aid awards may be made to undertakings defined within the
act in a general and abstract manner and any act on the
basis of which aid which is not linked to a specific project
may be awarded to one or several undertakings for an inde-
finite period of time and/or for an indefinite amount;

(c) ‘aid intensity’ means the aid amount expressed as a percen-

tage of the eligible costs;

(d) ‘fisheries product’ means both products caught at sea or in
inland waters and the products of aquaculture listed in
Article 1 of Regulation (EC) No 104/2000;

(e) ‘processing and marketing’ means all operations, including
handling, treatment, production and distribution, between
the time of landing or harvesting and the end-product stage;

(f) ‘small

and medium-sized
enterprises as defined in Annex I
No 70/2001;

enterprises’

(‘SMEs’) means
to Regulation (EC)

(g) ‘transparent aid’ means aid in respect of which it is possible
to calculate precisely the gross grant equivalent ex ante
without need to undertake a risk assessment.

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Article 3

Conditions for exemption

exempt

1.
Individual aid outside any scheme, fulfilling all the condi-
tions of this Regulation, shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty provided that the summary informa-
tion provided for in Article 24(1) has been submitted and that it
contains an express reference to this Regulation, by citing its
title and publication reference in the Official
the
European Union.

Journal of

Aid schemes fulfilling all the conditions set out in this
2.
Regulation shall be compatible with the common market within
the meaning of Article 87(3)(c) of
the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a) any aid that could be awarded under such scheme fulfils all

the conditions set out in this Regulation;

(b) the scheme contains an express reference to this Regulation,
by citing its title and publication reference in the Official
Journal of the European Union;

(c) the summary information provided for in Article 24(1) has

been submitted.

3.
Aid granted under the schemes referred to in paragraph 2
shall be compatible with the common market within the
meaning of Article 87(3)(c) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of the Treaty
provided that the aid granted directly fulfils all the conditions of
this Regulation.

4.
Before granting any aid under this Regulation, Member
States shall verify that the measures financed and their effects
comply with Community law. During the grant period, Member
States shall verify that the beneficiaries of the aid comply with
the rules of the Common Fisheries Policy. If during that period
it is found that the beneficiary does not comply with rules of
the Common Fisheries Policy, the grant must be reimbursed in
proportion to the gravity of the infringement.

Article 4

Transparency of aid

1.
This Regulation shall apply only to transparent aid. In par-
ticular, the following types of aid shall be considered to be trans-
parent:

(a) aid comprised in loans where the gross grant equivalent has
been calculated on the basis of market
rates
prevailing at the time of the grant and taking into account

interest

the existence of normal securities and/or abnormal risk
associated with the loan;

(b) aid comprised in guarantee schemes where the methodology
to calculate the gross grant equivalent has been accepted
following notification of this methodology to the Commis-
sion and the approved methodology explicitly addresses the
type of guarantees and the type of underlying transactions
at stake in the context of the application of this Regulation;

(c) aid comprised in fiscal measures shall be considered as
transparent when the measures provides for a cap ensuring
that the applicable ceiling is not exceeded.

The following types of aid shall not be considered to be

2.
transparent:

(a) aid comprised in capital injections;

(b) aid comprised in risk capital measures.

3.
Aid in the form of repayable advances shall only be
considered to be transparent aid if the total amount of repayable
advance does not exceed the applicable threshold under this
Regulation. If the threshold is expressed in terms of aid inten-
sity, the total amount of the repayable advance, expressed as a
percentage of the eligible costs, shall not exceed the applicable
aid intensity.

Article 5

Cumulation

1.
In determining whether the individual notification thresh-
olds laid down in Article 1 and the maximum aid intensities
laid down in Chapter II are respected, the total amount of public
support for the aided activity or project shall be taken into
account, regardless of whether that support is financed from
local, regional, national or Community sources.

2.
Aid exempted under this Regulation may be cumulated
with any other aid exempted under this Regulation as long as
those aid measures concern different identifiable eligible costs.

Where the identifiable eligible costs of different aid measures
exempted under this Regulation partly or fully overlap,
the
common portion will be subject to the highest aid intensity or
aid amount applicable under this Regulation.

Aid exempted under

3.
this Regulation shall not be
cumulated with any other State aid within the meaning of
Article 87(1) of the Treaty, other support measures including
aid fulfilling the conditions laid down in Commission Regu-
lation (EC) No 1860/2004 (1) or with other Community
funding in relation to the same eligible costs if such cumulation
in exceeding the highest aid intensity or aid
would result
amount applicable to this aid under this Regulation.

(1) OJ L 325, 28.10.2004, p. 4.

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CHAPTER II

CATEGORIES OF AID

Article 87(3)(c) of the Treaty and shall be exempt from the noti-
fication requirement of Article 88(3) of the Treaty provided
that:

Article 6

(a) the aid fulfils the conditions of Articles 28 and 29 of Regu-

lation (EC) No 1198/2006; and

Aid for permanent cessation of fishing activities

Aid for the permanent cessation of fishing activities of fishing
vessels shall be compatible with the common market within the
meaning of Article 87(3)(c) of the Treaty and shall be exempt
from the notification requirement of Article 88(3) of the Treaty
provided that:

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 10

(a) the aid fulfils the conditions of Article 23 of Regulation (EC)

Aid for aqua-environmental measures

No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 7

Aid for temporary cessation of fishing activities

Aid for temporary cessation of fishing activities for fishers and
owners of fishing vessels shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty provided that:

exempt

(a) the aid fulfils the conditions of Article 24 of Regulation (EC)

No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 8

Aid for compensation for the use of aquaculture production
methods helping to protect and improve the environment and
conserve nature shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a) the aid fulfils the conditions of Articles 28 and 30 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 11

Aid for public health measures

Aid for compensation to mollusc farmers for the temporary
suspension of harvesting of farmed mollusc shall be compatible
with the common market within the meaning of Article 87(3)(c)
of the Treaty and shall be exempt from the notification require-
ment of Article 88(3) of the Treaty provided that:

Aid for socio-economic compensation for the management
of the fleet

(a) the aid fulfils the conditions of Articles 28 and 31 of Regu-

lation (EC) No 1198/2006; and

Aid for the financing of socio-economic measures shall be
compatible with the common market within the meaning of
Article 87(3)(c) of the Treaty and shall be exempt from the noti-
fication requirement of Article 88(3) of the Treaty provided
that:

(a) the aid fulfils the conditions of Articles 26(3) and 27 of

Regulation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 9

Aid for productive investments in aquaculture

Aid for productive investments in aquaculture shall be compa-
common market within the meaning of
tible with the

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 12

Aid for animal health measures

Aid for animal health measures shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a) the aid fulfils the conditions of Articles 28 and 32 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

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Article 13

(a) the aid fulfils the conditions of Articles 36 and 38 of Regu-

lation (EC) No 1198/2006; and

Aid for inland fishing

Aid for inland fishing shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty
and shall be exempt
from the notification requirement of
Article 88(3) of the Treaty provided that:

(a) the aid fulfils the conditions of Article 33 of Regulation (EC)

No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 14

Aid for processing and marketing

Aid for processing and marketing of fisheries products shall be
compatible with the common market within the meaning of
Article 87(3)(c) of the Treaty and shall be exempt from the noti-
fication requirement of Article 88(3) of the Treaty provided
that:

(a) the aid fulfils the conditions of Article 34 and 35 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 15

Aid for collective actions

Aid for measures of common interest which are implemented
with the active support of operators themselves or by organisa-
tions acting on behalf of producers or other organisation recog-
nised by the Member States shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a) the aid fulfils the conditions of Articles 36 and 37 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 17

Aid for investments in fishing ports,

landing sites and

shelters

Aid for investments in public or private fishing ports, landing
sites and fishing shelters shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
from the notification requirement of
shall be
Article 88(3) of the Treaty provided that:

exempt

(a) the aid fulfils the conditions of Articles 36 and 39 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 18

Aid for development of new markets and promotional
campaigns

Aid for measures of common interest intended to implement a
policy of quality and value enhancement, development of new
markets or promotional campaigns for fisheries and aquaculture
products shall be compatible with the common market within
the meaning of Article 87(3)(c) of
the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a) the aid fulfils the conditions of Articles 36 and 40 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 19

Aid for pilot projects

Article 16

Aid for measures intended to protect and develop aquatic
fauna and flora

Aid for pilot projects shall be compatible with the common
market within the meaning of Article 87(3)(c) of the Treaty and
shall be
from the notification requirement of
Article 88(3) of the Treaty provided that:

exempt

Aid for measures of common interest intended to protect and
develop aquatic fauna and flora while enhancing the aquatic
environment shall be compatible with the common market
within the meaning of Article 87(3)(c) of the Treaty and shall be
exempt from the notification requirement of Article 88(3) of
the Treaty provided that:

(a) the aid fulfils the conditions of Articles 36 and 41 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

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Article 20

Aid for modification for reassignment of fishing vessels

Aid for modification for reassignment of fishing vessels, under
the flag of a Member State and registered in the Community for
training or research purposes inside the fisheries sector or for
other activities outside fishing shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a) the aid fulfils the conditions of Articles 36 and 42 of Regu-

lation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

Article 21

Aid for technical assistance

technical assistance shall be compatible with the
Aid for
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt from the notification requirement of
Article 88(3) of the Treaty provided that:

(a) the aid fulfils the conditions of Article 46(2) and (3) of

Regulation (EC) No 1198/2006; and

(b) the amount of the aid does not exceed, in subsidy equiva-
lent, the total rate of public contributions fixed by Annex II
to Regulation (EC) No 1198/2006.

If the aid scheme creates an automatic right to receive the aid,
requiring no further action at administrative level, the aid itself
may only be granted after the aid scheme has been set up and
published in accordance with this Regulation.

Article 24

Transparency and monitoring

1.
At the latest 10 working days before the entry into force
of an aid scheme or the granting of individual aid outside any
aid scheme, Member States shall forward to the Commission a
summary of the information regarding such aid in electronic
form,
in the form laid down in Annex I, with a view to its
publication in the Official Journal of the European Union and on
the Commission's website. Within 10 working days of receipt of
that summary, the Commission shall send an acknowledgment
of receipt to the Member State with the identification number
of the aid measure concerned.

2.
As soon as an aid scheme enters into force, or an indivi-
dual aid is granted on the basis of this Regulation, Member
States shall publish on the internet the full text of such aid
measure with the identification number provided by the
Commission pursuant to paragraph 1, indicating the criteria and
conditions under which such aid is granted and the identity of
the website shall be
the granting authority. The address of
communicated to the Commission together with the summary
of the information regarding the aid required pursuant to para-
graph 1.
report
submitted pursuant to paragraph 4.

It shall also be contained in the annual

Article 22

3. Member States shall refer to the identification number
provided by the Commission pursuant to paragraph 1 in each
aid granting decision addressed to a final beneficiary.

Tax exemptions in accordance with Directive 77/388/EEC
and 2003/96/EC

Tax exemptions applicable to the whole fisheries sector which
Member States introduce pursuant to Article 15 of Directive
77/388/EEC or pursuant to Article 14 or Article 15 of Directive
2003/96/EC shall, to the extent that they constitute State aid, be
compatible with the common market and exempt from the
notification requirement of Article 88(3) of the Treaty.

CHAPTER III

COMMON AND FINAL PROVISIONS

Article 23

Steps preceding grant of aid

In order to qualify for exemption under this Regulation, aid
shall only be granted in respect of activities undertaken or
services received after the aid scheme has been set up and
published in accordance with this Regulation.

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

5. Member States shall maintain detailed records regarding
any individual aid or aid scheme exempted under this Regu-
lation. Such records shall consist of transparent and itemised
documentary evidence and shall contain all information neces-
sary to establish that the conditions laid down in this Regu-
lation, are fulfilled, including information on the status of any
undertaking whose entitlement to aid or a bonus depends on its
status as an SME, information on the incentive effect of aid and
information making it possible to establish the precise amount
of eligible costs for the purpose of applying this Regulation.

6.
Records regarding individual aid shall be maintained for
10 years from the date on which the aid was granted. Records
regarding an aid scheme shall be maintained for 10 years from
the date on which the last aid was granted under such scheme.

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

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The Commission shall regularly monitor aid measures of

7.
which it has been informed pursuant to paragraph 1.

On written request, the Member State concerned shall
8.
provide the Commission within a period of 20 days or such
longer period as may be fixed in the request, with all the infor-
mation which the Commission considers necessary to monitor
the application of this Regulation.

the Commission shall

If such information is not provided within that period or a
commonly agreed period,
send a
reminder setting a new deadline for the submission of the infor-
mation. If, despite such reminder, the Member State concerned
does not provide the information requested, the Commission
may, after having provided the Member State concerned with
the possibility to make its views known, adopt a decision stating
that all future individual aid measures adopted on the basis of
the scheme are to be notified to the Commission.

Article 25

Transitional Provisions

Article 88(3) of
the Treaty, shall be compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall be exempt if it fulfils the conditions laid down
in Article 3 of this Regulation, except the requirements in para-
graphs 1 and 2(b) of that Article that express reference be made
to this Regulation. Any aid which does not fulfil those condi-
tions shall be assessed by the Commission in accordance with
the
and
notices.

frameworks, guidelines,

communications

relevant

2.
Any aid granted before the entry into force of this Regu-
lation which does not fulfil the conditions laid down in this
Regulation but fulfils the conditions laid down in Regulation
(EC) No 1595/2004, shall be deemed compatible with the
common market within the meaning of Article 87(3)(c) of the
Treaty and shall
from the notification
requirement of Article 88(3) of the Treaty.

therefore be exempt

Aid schemes exempted under this Regulation shall remain
3.
exempt during an adjustment period of six months following
the date provided for in the second paragraph of Article 26.

Notifications pending at the time of entry into force of
1.
this Regulation shall be assessed in accordance with its provi-
sions. Where the conditions of this Regulation are not fulfilled,
the Commission shall examine such pending notifications under
the Community guidelines for State aid in the fisheries sector.

Aid notified before the entry into force of this Regulation or
granted before that date in the absence of a Commission
authorisation and in breach of the notification requirement of

Article 26

Entry into force and applicability

This Regulation shall enter into force on the twentieth day
Journal of the
following that of its publication in the Official
European Union.

It shall apply until 31 December 2013.

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

Done at Brussels, […]

For the Commission

[…]

Member of the Commission

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Form of summary information to be provided whenever an aid scheme exempted by this Regulation is imple-
mented and whenever an individual aid exempted by this Regulation is granted outside any aid scheme

ANNEX I

1. Member State:

2. Region/Authority granting the aid:

3. Title of aid scheme/name of company receiving an individual aid:

4. Legal basis (indicate the precise national legal reference):

5. Annual expenditure planned under the scheme or amount of individual aid granted:

6. Maximum aid intensity:

7. Date of entry into force:

8. Duration of the scheme or individual aid award (not later than 31 December 2013); indicate:

— under the scheme: the date until which aid may be granted:

— in the case of an individual aid: the expected date of the last instalment to be paid:

9. Objective of aid:

10. Indicate which of Article(s) 4 to 20 is used:

11. Activity concerned:

12. Name and address of the granting authority:

13. Web-address where the full text of the scheme or the criteria and conditions under which individual aid is granted

outside of an aid scheme can be found:

14. Motivation: Indicate why a State aid scheme has been established instead of assistance under the European Fisheries

Fund:

ANNEX II

Form of the periodic report to be provided to the Commission

For their reporting obligations to the Commission under group exemption regulations adopted on the basis of Council
Regulation (EC) No 994/98, Member States shall provide the information mentioned below concerning all aid measures
covered by this Regulation, in computerised form, in the format communicated by the Commission to the Member States.

1. Member State:

2. Title:

3. Aid number:

4. Year of expiry:

5. Objective of the aid:

6. Number of beneficiaries:

7. Category of aid (e.g. direct grant, loan with reduced interest rate, etc.):

8. Total annual expenditure:

9. Remarks: