97/551/EC: Commission Decision of 12 February 1997 on the compatibility with the common market of Germany's proposed extension of the investment-allowance and special-depreciation schemes to west Berlin, in so far as these schemes do not concern the agricultural products processing and marketing sector (Only the German text is authentic) (Text with EEA relevance)

• Articles: 5

Article 1

1. The extension of the investment allowance scheme to west Berlin and the extension of the special depreciation scheme to west Berlin constitute unlawful State aid, since they were introduced contrary to the provisions of Article 93 (3).

2. The extension of the investment allowance scheme to west Berlin and the extension of the special depreciation scheme to west Berlin are, in so far as the agricultural products processing and marketing sector is not concerned by the two schemes, compatible with the common market under the following conditions:

(a) the granting of the investment allowance is limited to equipment for initial investment begun after 31 December 1995;

(b) the granting of the investment allowance is restricted to small firms within the meaning of the Community guidelines on State aid for small and medium-sized enterprises, where the investment involved is carried out in a region which is not an assisted area at the start of the investment;

(c) the special depreciations are limited to equipment and construction goods for initial investment started after 31 December 1995;

(d) the special depreciations are limited to investment which is carried out in an area which is an assisted area at the start of the investment;

(e) the application of these schemes is subject to the provisions on the cumulation of State aid, be it the cumulation of aid for different purposes or the cumulation of aid for the same purpose under schemes adopted at the same or at different levels (central, regional and/or local). In the event of cumulation, the aid must not exceed either the intensity of 15 % gross for investment outside the assisted areas or, inside the assisted areas, the maximum admissible intensities for regional aid in west Berlin, i.e. 35 % gross for large firms and 45 % gross (not more than 30 % net) for small and medium-sized firms;

(f) in the application of the aid schemes, the Community rules for certain economic sectors are to be observed, e.g. the sectors falling under the ECSC Treaty, transport, fisheries and agriculture;

(g) Germany shall submit to the Commission an annual report on the application of the schemes.

Article 2

1. Within six months after the notification of this Decision, Germany shall amend the schemes extending the investment allowance and the special depreciations to west Berlin, in so far as they do not concern the agricultural products processing and marketing sector, so as to bring them into conformity with this Decision with effect from 1 January 1996.

2. If Germany finds it is unable to amend the schemes extending the investment allowance and the special depreciations to west Berlin so as to bring them into conformity with this Decision with effect from 1 January 1996, it shall abolish them with effect from 1 January 1996.

Article 3

If, in so far as the agricultural products processing and marketing sector is not concerned, taxable persons have received, under the two extension schemes in question, a temporary or definitive tax advantage under conditions which, inasmuch as they are not in accordance with Article 1 or Article 2, are incompatible with the common market, Germany shall ensure that the tax decisions granted are annulled within eight months after notification of this Decision and that any advantages arising from them, including any interest payments, shall be deprived of all their effects.

Article 4

Germany shall inform the Commission within two months after the notification of this Decision of the measures which are to be taken in order to comply with this Decision.

It shall inform the Commission within eight months after the notification of this Decision of the measures which it has taken in order to comply with this Decision.

Article 5

This Decision is addressed to the Federal Republic of Germany.

Done at Brussels, 12 February 1997.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ No C 194, 5. 7. 1996, p. 10.

(2) OJ No C 111, 4. 11. 1971, p. 1.

(3) OJ No C 150, 24. 5. 1996, p. 11.

(4) OJ No C 373, 29. 12. 1994, p. 3.

(5) State aid No N 613/96, not yet published.

(6) OJ No C 213, 23. 7. 1996, p. 4.

(7) OJ No C 29, 2. 2. 1996, p. 4.

(8) State aid No C 25/96, not yet published.

(9) OJ No C 293, 5. 10. 1996, p. 4.

(10) Official Gazette of the Federal Ministry of Finance (Bundessteuerblatt, BStBl) 1996, Part I, No 1, p. 2.

(11) OJ No C 212, 12. 8. 1988, p. 2.

(12) OJ No C 163, 4. 7. 1990, p. 6.

(13) OJ No C 291, 4. 10. 1996, p. 4.

(14) OJ No C 31, 3. 2. 1979, p. 9.

(15) OJ No C 68, 6. 3. 1996, p. 9.

(16) [1993] ECR I-2097.

(17) OJ No C 3, 5. 1. 1985, p. 2.