2001/1/EC: Commission Decision of 15 February 2000 on the State aid implemented by the Federal Republic of Germany for Dessauer Geräteindustrie GmbH (Text with EEA relevance) (notified under document number C(2000) 515)

• Articles: 4

Article 1

The State aid which Germany has implemented for Dessauer Geräteindustrie GmbH, amounting to at least EUR 6,93 million (DEM 13,57 million), plus interest, is incompatible with the common market. According to the information available, the aid consists of the following measures:

- loan from the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS) amounting to EUR 3,39 million (DEM 6,64 million),

- grant from the BvS amounting to EUR 2,55 million (DEM 5 million),

- the repayment of a deferred debt to the BvS which amounts to EUR 0,98 million (DEM 1,93 million) according to Germany, or EUR 1,36 million (DEM 2,66 million) according to the report on DGI's insolvency proceedings, whichever sum is correct, together with the interest due thereon.

Article 2

1. Germany shall take all necessary measures to recover from the recipient the aid referred to in Article 1 and unlawfully made available to it.

2. Recovery shall be effected in accordance with the procedures of national law. The aid to be recovered shall include interest from the date on which it was at the disposal of the recipient until the date of its recovery. Interest shall be calculated on the basis of the reference rate used for calculating the grant equivalent of regional aid.

Article 3

Germany shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

Article 4

This Decision is addressed to the Federal Republic of Germany.

Done at Brussels, 15 February 2000.

For the Commission

Mario Monti

Member of the Commission

(1) OJ C 213, 24.7.1999, p. 12.

(2) See footnote 1.

(3) OJ C 213, 23.7.1996, p. 4.

(4) E 15/92, SG (92) D/17613 of 8 December 1992. Under point 3 of the scheme, when no bidder is prepared to offer a positive price but the THA nevertheless decides to go through with the sale, aid may be granted if closure of the undertaking would be the cheaper solution. Such sales at negative prices must be notified to the Commission in cases where the firm employs more than 1000 workers. DGI employed fewer than 1000 people and did not exceed the scheme's threshold, so that the measures were covered by the scheme.

(5) 21. Rahmenplan der Gemeinschaftsaufgabe zur Verbesserung der regionalen Wirtschaftsstruktur: Measures covered by this scheme qualify as regional investment aid under Article 87(1) of the EC Treaty and were approved under the exemption laid down in Article 87(3)(a) (N 292/92).

(6) By October 1998, 27000 stoves had been checked. The company expects to complete the operation by the end of 2000.

(7) As DGI assigned its claim against Colonia Versicherung AG to the BvS, the amount covered by Colonia will be transferred direct to the BvS.

(8) This sale complies with the Commission communication on State aid elements in sales of land and buildings by public authorities (OJ C 209, 10.7.1997). The sale was made under market conditions and the market value was established by an independent asset assessor (architect Mr Heinz Spies, appointed by the Dortmund Chamber of Commerce and Industry) on the basis of generally accepted market indicators and valuation standards.

(9) It was agreed that this amount should be paid back in two instalments, on 30 June 1999 and 30 June 2000, subject to interest (two points above the official discount rate of the Deutsche Bundesbank). The payment was covered by a personal guarantee given by Mr Schroer amounting to DEM 1 million and a further DEM 0,931 million secured by the company on inventory and stocks.

(10) Commission Decision of 21 June 1994, Case No IV/M.458 (OJ C 187, 9.7.1994, p. 14).

(11) Panorama of EU Industry 1997, Vol.2, 13-60, NACE (Revision 1) 29.7.

(12) Letter from DG III dated 17 February 1999 (ref. 01520).

(13) Panorama of EU Industry 1997, Vol.2, 15-8, NACE (Revision 1) 31.20.

(14) OJ L 83, 27.3.1999.

(15) OJ C 209, 10.7.1997.

(16) Investitionszuschüsse granted under the 27. Rahmenplan der Gemeinschaftsaufgabe zur Verbesserung der regioalen Wirtschaftsstruktur (N 100/98): Under point 2.5 of the scheme, funds may cover up to 50 % of the necessary investments.

(17) Under the Investitionszulagegesetz, up to 10 % of the eligible investments of SMEs made by the end of 1998 may be covered by investment allowances. From 1999 on, this limit is increased to 20 %.

(18) JO C 368 de 23.12.1994.

(19) In this area, a turnover of DEM 15 million to DEM 18 million was expected for 1998, but a figure of only DEM 5 million was actually achieved.

(20) These included transferring production of spare parts to other companies, outsourcing maintenance activities and adapting several areas of production.

(21) Case C 169/95 Spain v Commission [1997] ECR I-135.

(22) See footnote 3.