2003/590/EC: Commission Decision of 5 March 2003 on the State aid which the United Kingdom is planning to grant to CDC Group plc (Text with EEA relevance) (notified under document number C(2003) 651)

• Articles: 2

Article 1

The State aid, notified on 17 January 2001, in the form of a tax exemption, which the United Kingdom is planning to implement on the basis of the CDC Act 1999 for the investment company to be created through the reorganisation of CDC Group plc, provisionally known as "CDC-Investco", is compatible with the common market within the meaning of Article 87(3)(c) of the Treaty.

The tax exemption is authorised for an initial period of 20 years from its entry into force.

The State aid in the form of a commitment by the investment company provisionally known as "CDC-Investco" to invest in certain agreed Funds, which the United Kingdom is planning to implement in favour of the management company to be created through the reorganisation of CDC Group plc, provisionally known as "Manco", is compatible with the common market within the meaning of Article 87(3)(c) of the Treaty. The aid is authorised for a period of five years from the entry into force of the relevant contract between the two companies.

Implementation of the aid is accordingly authorised for the specified periods.

Article 2

This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 5 March 2003.

For the Commission

Mario Monti

Member of the Commission

(1) OJ C 223, 19.9.2002, p. 6.

(2) See footnote 1.

(3) "Poorer developing countries" are those classified as "low income" by the World Bank in 1998, and those which were classified as "lower middle income" by the World Bank in 1998 and whose GNP per capita is below the weighted mean for lower middle income countries. The definition also includes 11 countries for which the World Bank does not currently collect GNP data.

(4) OJ C 253, 21.8.2001, p. 3.

(5) "Bulletin EU" 11-2000 Development cooperation (1/10) 1.6.43. Statement by the Council and the Commission on the Community's development policy.

(6) The company names "CDC-Investco" and "Manco" are only preliminary names.

(7) See footnote 5.

(8) Source:

United Kingdom authorities.

(9) The amount of tax revenue foregone depends on the extent to which investors in CDC are liable to tax in the United Kingdom. See also the Commission's decision in case N 56/2001 (OJ C 223, 19.9.2002, p. 6).

(10) See e.g. judgement in Case C-482/99 French Republic v Commission. [2002] ECR I-4397.