Commission Decision of 7 June 2006 on State aid granted by Germany for the acquisition of shares in winegrowers' cooperatives (notified under document number C(2006) 2070)

• Articles: 5

Article 1

The state aid scheme in the form of direct assistance or interest relief to winegrowers and winegrowing enterprises for investing in shares in producer organisations and in the form of direct assistance for producer organisations, which was unlawfully implemented by the Federal Republic of Germany in breach of Article 88(3) of the EC Treaty, shall — without prejudice to Article 2 — be deemed incompatible with the common market.

Article 2

The scheme referred to in Article 1 shall be deemed not to constitute aid insofar as it complies with the conditions of Regulation (EC) No 1860/2004.

Article 3

1.   Within two months from the date of notification of the present decision, the Federal Republic of Germany shall inform all winegrowers and producer organisations concerned with the application of the state aid scheme of the Commission's decision that the state aid scheme referred to in Article 1 is incompatible with the common market.

2.   The Federal Republic of Germany shall take all necessary measures to ensure that the aid referred to in Article 1 and unlawfully granted is recovered from the beneficiary winegrowers and/or producer organisations, without prejudice to Article 2 or any subsequent claims under national law. Within two months from the date of notification of the present decision, the Federal Republic of Germany shall inform the Commission of the identity of those beneficiaries, the aid amounts individually granted and the methods used to determine those amounts.

3.   Recovery shall be effected without delay and in accordance with the procedures of national law permitting the immediate and effective implementation of this Decision.

4.   The aid to be recovered shall bear interest throughout the period, from the date on which it was first placed at the beneficiaries' disposal until its actual recovery.

5.   The interest shall be calculated in accordance with the provisions laid down in Chapter V of Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty.

Article 4

The Federal Republic of Germany shall inform the Commission, within two months of the date of notification of this Decision, of the measures already taken and planned to comply with it. Germany shall submit, within the same period, all documents which demonstrate that recovery proceedings have been initiated against the beneficiaries of the unlawful aid.

Article 5

This decision is addressed to the Federal Republic of Germany.