96/545/EC: Commission Decision of 29 May 1996 concerning aid proposed by Germany to Buna GmbH, Sächsische Olefinwerke GmbH, Leuna-Werke GmbH, Leuna-Polyolefine GmbH and BSL Polyolefinverbund GmbH (Only the German text is authentic) (Text with EEA relevance)

• Articles: 7

Article 1

Of the new aid which Germany intends to grant to BSL Olefinverbund GmbH, the Commission finds the following amounts compatible with the common market:

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Furthermore, the aid of over DM 462,9 million to Leuna Werke AG is also compatible with the common market.

Article 2

Germany shall ensure that the privatization agreement between The Dow Chemical Company, Buna GmbH, Sächsische Olefinwerke GmbH, Leuna-Polyolefine GmbH and Bundesanstalt für vereinigungsbedingte Sonderaufgaben is altered. The following points shall be amended, inserted or deleted:

1. The privatization agreement shall be amended in order to exclude the cost of the aniline, nitric acid and nitrobenzene plant amounting to DM 212 million from the capital contribution of BvS provided for in Article 8.3 of the privatization contract and to include DM 384 million additional contribution for DM 459 million additional investment. Article 8.3.4 of the privatization contract shall be amended in order to exclude incentive payments on the first 10 % saved of the investment cost laid down in the privatization contract.

2. The privatization contract, and in particular Article 9.2 thereof, shall be amended in order to exclude payments to compensate structural deficiencies after the restructuring period, other than DM 96 million for the operation of an environmental monitoring system.

3. Articles 15.3 and 15.5 of the privatization contract shall be deleted.

4. The privatization contract shall be amended so as to include the obligation of prior notification pursuant to Article 93 (3) of the Treaty in the following cases provided for in that contract: additional cost of an alternative routing of the pipeline, environmental cost in excess of DM 1 billion, prolongation of the restructuring period beyond five years, payments to Dow in the event of rescission of the contract.

5. Germany shall ensure that no fiscal advantages can be derived from past losses that are written off.

Article 3

1. A copy of the modified contract shall be submitted to the Commission within one month of its conclusion.

2. Any deviations from the modified contract together with any award of fiscal advantages attaching to past losses shall be notified to the Commission pursuant to Article 93 (3) of the EC Treaty.

Article 4

1. Germany shall submit to the Commission half-yearly reports on the progress of restructuring and the amount of aid actually awarded under the various items in the privatization contract, allowing it to verify that this Decision is complied with. These reports shall also specify all incentive payments made for investment costs saved pursuant to Article 8.3.4 of the privatization contract. These reports shall be submitted in the first semester of the year following the reporting period.

2. Germany shall also submit to the Commission the annual investment reports referred to in Article 8 of the privatization contract, the audits referred to in Article 14.2.4 of the privatization contract and the final report referred to in Article 8.3.3 of the privatization contract within one month of their respective conclusions.

Article 5

Germany shall refrain from granting any further aid to Buna GmbH, Sächsische Olefinwerke GmbH, Leuna-Werke GmbH, Leuna-Polyolefine GmbH or BSL Polyolefinverbund GmbH in support of the restructuring plan which is subject of this Decision.

Article 6

Germany shall inform the Commission within two months of the date of notification of this Decision of the measures it has taken to comply therewith.

Article 7

This Decision is addressed to the Federal Republic of Germany.

Done at Brussels, 29 May 1996.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ No C 203, 8. 8. 1995, p. 6.

(2) OJ No C 203, 8. 8. 1995, p. 6.

(3) 1. Opening of procedure:

- OJ No C 113, 5. 5. 1995, p. 5 (Buna),

- OJ No C 113, 5. 5. 1995, p. 13 (SOW),

- OJ No C 206, 26. 7. 1994, p. 10 (Leuna).

2. Enlargement of procedure:

- OJ No C 203, 8. 8. 1995, p. 6 (Buna, SOW, BSL),

- OJ No C 227, 1. 9. 1995, p. 8 (Leuna).

(4) Not published.

(5) Not published.

(6) OJ No C 113, 5. 5. 1995, p. 5.

(7) OJ No C 322, 30. 11. 1993, p. 14.

(8) OJ No C 113, 5. 5. 1995, p. 13.

(9) OJ No C 206, 26. 7. 1994, p. 10.

(10) OJ No C 227, 1. 9. 1995, p. 8.

(11) OJ No L 395, 30. 12. 1989, p. 1. Corrigendum: OJ No L 257, 21. 9. 1990, p. 13.

(12) Land Sachsen-Anhalt, DM 345 million and Freistaat Sachsen, DM 138 million.

(13) Aid NN 11/91; Commission Decision of 31 July 1991.

(14) OJ No L 66, 13. 3. 1991, p. 22.

(15) OJ No C 203, 8. 8. 1995, p. 6.

(16) OJ No C 148, 15. 6. 1995, p. 4.

(17) OJ No C 368, 23. 12. 1994, p. 12.

(18) OJ No C 72, 10. 3. 1994, p. 3.