2004/168/EC: Commission Decision of 15 October 2003 on a proposal by Portugal to grant aid to Vila Galé — Cintra Internacional, Investimentos Turísticos, SA (notified under document number C(2003) 3376) (Text with EEA relevance)

• Articles: 4

Article 1

The aid in the form of a soft loan and a tax credit which Portugal is planning to implement for Vila Galé - Cintra Internacional, Investimentos Turísticos, SA with a view to financing foreign direct investment in Brazil is, subject to the conditions set out in Article 2, compatible, pursuant to Article 87(1) of the Treaty, with the common market and, pursuant to Article 61(1) of the EEA Agreement, with the functioning of that Agreement.

Article 2

The soft loan and the tax credit to be granted to Vila Galé - Cintra Internacional, Investimentos Turísticos, SA must be financed exclusively by national funds. The measures may not be co-financed by Community funds from the European Regional Development Fund.

Article 3

Portugal 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 Portuguese Republic.

Done at Brussels, 15 October 2003.

For the Commission

Mario Monti

Member of the Commission

(1) OJ C 253, 22.10.2002, p. 5.

(2) See footnote 4.

(3) Approved by the Commission on 26 July 2000 (OJ C 266, 16.9.2000, p. 7).

(4) Approved by the Commission on 8 September 1999 (OJ C 375, 24.12.1999, p. 5).

(5) Article 1(3) of the Annex to the Commission Recommendation of 3 April 1996 concerning the definition of small and medium-sized enterprises (OJ L 107, 30.4.1996) states that: Independent enterprises are those which are not owned as to 25 % or more of the capital or the voting rights by one enterprise, or jointly by several enterprises, falling outside the definition of an SME or a small enterprise, whichever may apply.

(6) Commission Regulation (EC) No 69/2001 of 12 January 2001 (OJ L 10, 13.1.2001).

(7) The calculation is based on the following:

1. duration of the loan: six years,

2. grace period: two years,

3. interest rate on the loan: 0 %,

4. reference interest rate for Portugal applicable at the time the investment took place: 6,33 %,

5. corporation tax rate currently in force in Portugal: 35,2 %.

(8) This is the net aid element of the tax credit as estimated by the Portuguese authorities.

(9) [1990] ECR, I-959, at 35.

(10) OJ L 193, 29.7.2000, p. 39.

(11) Rule 12, Annex I to Regulation (EC) No 1685/2000.

(12) Rule 12, point 3, Annex I to Regulation (EC) No 1685/2000.

(13) Source: ABIH Nacional - Brazilian Association of the Hotel Industry, "Statistics on the national hotel industry", 22 February 2001.

(14) See footnote 17.

(15) OJ C 135, 6.6.2002, p. 1.

(16) OJ C 74, 10.3.1998, p. 9.