The following aid proposed by Germany for the various investment projects of Volkswagen AG in Saxony is compatible with Article 92 (3) (c) of the EC Treaty and Article 61 (3) (c) of the EEA Agreement:
- aid granted by Germany to Volkswagen Sachsen GmbH and Volkswagen Sachsen Immobilienverwaltung GmbH for their investment projects in Mosel (Mosel II) and Chemnitz (Chemnitz II) in the form of investment grants (Investitionszuschüsse) of up to DM 418,7 million,
- aid granted by Germany to Volkswagen Sachsen GmbH and Volkswagen Sachsen Immobilienverwaltung GmbH for their investment projects in Mosel (Mosel II) and Chemnitz (Chemnitz II) in the form of investment allowances (Investitionszulagen) of up to DM 120,4 million.
The following aid proposed by Germany for the various investment projects of Volkswagen AG in Saxony is incompatible with Article 92 (3) (c) of the EC Treaty and Article 61 (3) (c) of the EEA Agreement and may not be granted:
- the proposed investment aid for Volkswagen Sachsen GmbH and Volkswagen Sachsen Immobilienverwaltung GmbH for their investment projects in Mosel II and Chemnitz II in the form of special depreciation on investment under the Assisted Areas Law ('Fördergebietsgesetz`) with a nominal value of DM 51,67 million,
- the proposed investment aid to Volkswagen Sachsen GmbH and Volkswagen Sachsen Immobilienverwaltung GmbH for their investment project in Mosel II in the form of investment grants ('Investitionszuschüsse`) in excess of the amount specified in the first indent of Article 1 and constituting an additional DM 189,1 million.
Germany shall ensure that the capacity of the Mosel plants in 1997 does not exceed a level of 432 units per day. To that effect, it shall in 1997 send to the Commission monthly reports on the capacity and output of the plants, which should give this information for both Mosel I and Mosel II separately. Germany has also agreed to random on-site checks by Commission officials and experts employed by the Commission to verify these data.
Furthermore, Germany shall send to, and discuss with, the Commission an annual report on the realization on the DM 2 654,1 million of eligible investments in Mosel II and Chemnitz II and the actual payments of aid so as to ensure that the combined effective aid intensity expressed in gross grant equivalent does not exceed 22,3 % for Mosel II and 20,8 % for Chemnitz II. The Commission expects the report on the years 1994 and 1995 to arrive by the end of 1996 and the report for 1996 to arrive by 1 May 1997.
Germany shall inform the Commission within one month of the notification of this Decision of the measures taken to comply herewith.
This Decision is addressed to the Federal Republic of Germany.
Done at Brussels, 26 June 1996.
For the Commission
Karel VAN MIERT
Member of the Commission
(1) OJ No C 68, 17. 3. 1992, p. 14.
(2) OJ No C 123, 18. 5. 1989, p. 3.
(3) OJ No L 188, 20. 7. 1990, p. 55.
(4) OJ No L 385, 31. 12. 1994, p. 1.
(5) OJ No L 53, 2. 3. 1996, p. 50.
(6) OJ No C 68, 17. 3. 1992, p. 14.
(7) OJ No L 88, 5. 4. 1996, p. 7.
(8) [1973] ECR, p. 611.
(9) See, for example, the following aid cases: Ford/VW (OJ No C 257, 3. 10. 1991, p. 5), Opel Eisenach (OJ No C 43, 16. 2. 1993, p. 14), FIAT Mezzogiorno (OJ No C 37, 11. 2. 1993, p. 15), Jaguar (OJ No C 201, 23. 7. 1994, p. 4), FASA Renault (OJ No C 267, 14. 10. 1995, p. 13) and Ford Genk (OJ No C 5, 10. 1. 1996, p. 5).
(10) OJ No C 298, 11. 11. 1995, p. 9.
