52003XC1101(02)

Commission communication on the modification of the Multisectoral 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

(2003/C 263/03)

(Text with EEA relevance)

The Multisectoral Framework on regional aid for large investment projects (OJ C 70, 19.3.2002) foresees that by 31 December 2003 sectors where serious structural problems prevail will be specified in a list of sectors annexed to the framework. In view of the methodological difficulties encountered in drawing up the list, the Commission has decided to postpone the adoption of such a list of sectors.

Experience gathered in recent years and information available on the current situation of the relevant sectors have led the Commission to decide that limitations currently applying to regional investment aid in the motor vehicle sector and in the synthetic fibres sector should be maintained.

The Commission has decided not to include the shipbuilding sector within the scope of the Multisectoral Framework.

The Commission has decided to introduce a technical correction to the wording of the transitional rules to the motor vehicle sector, to become applicable for aid awarded after 31 December 2003.

For reasons of transparency, the text of the Multisectoral Framework is therefore modified as follows.

Point 31 is modified as follows:

31. Sectors where serious structural problems prevail may be specified in a list of sectors to be annexed to the framework. 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 examined before the end of 2005. If the Commission 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 88 paragraph 1 of the EC-Treaty that may become necessary in this context will be proposed before 1 July 2006.

Point 32 is modified as follows:

32. 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 classification(1) in the EEA, or, if such information is not available, on the basis of any other market segmentation generally 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 point 33 is modified as follows:

33. If the Commission 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 involving eligible expenditure above an amount to be determined by the Commission at the time of drawing up the list of sectors(2) must be individually notified to the Commission, without prejudice to the provisions laid down in Regulation (EC) No 70/2001.

Point 42 is modified as follows:

42. Until 31 December 2006, and without prejudice to Regulation (EC) No 70/2001:

(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.

Points 43 and 44 are repealed.

After point 46, two new points 46 bis and 46 ter are inserted:

46 bis. 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 Commission has decided to propose as appropriate measures under Article 88(1) of the Treaty:

- 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, to limit 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.

46 ter. The Member 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 Commission will assume that the Member State in question does not agree with the proposed measures.

(1) Council Regulation (EEC) No 3696/93 of 29 October 1993 on the statistical classification of products by activity (CPA) in the European 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).

(2) This amount can in principle be set at EUR 25 million but may vary from sector to sector.