Excmo. Sr. D. José Manuel García Margallo Y Marfil Ministro De Asuntos Exteriores Y De Cooperación Sede Palacio De Santa Cruz Plaza De La Provincia, 1 28071 Madrid
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EUROPEAN COMMISSION Brussels, 07.11.2016 C(2016) 7024 PUBLIC VERSION This document is made available for information purposes only. Subject: State aid case no. SA.46099 (2016/N) – Spain - Amendment to the regional aid map for Spain (2014-2020) for the period 2017-2020 Sir, 1. PROCEDURE (1) On 28 June 2013 the Commission adopted the Guidelines on Regional State Aid for 2014-2020 (hereinafter "RAG")1. On the basis of the RAG the Spanish authorities notified their regional aid map, which was approved by the Commission on 21 May 2014 for the period from 1 July 2014 until 31 December 20202. (2) Pursuant to section 5.6.2 of the RAG, Member States may notify amendments to their regional aid map in the context of the mid-term review in 2016. The amended regional aid maps will be in force from 1 January 2017 until 31 December 2020. (3) The Commission published on 25 June 2016 a Communication amending Annex I to the RAG (hereinafter, the "Communication")3. 1 OJ C 209, 23.07.2013, p.1 2 Decision for State aid case SA.38472 - Regional aid map for Spain (2014-2020), OJ C 233, 18.7.2014, p.26. 3 Communication from the Commission (2016/C 231/01) amending Annex I to the Guidelines on regional aid for 2014-2020 (Mid-term review of the regional aid maps), OJ C 231, 25.6.2016, p.1 Excmo. Sr. D. José Manuel García Margallo y Marfil Ministro de Asuntos Exteriores y de Cooperación Sede Palacio de Santa Cruz Plaza de la Provincia, 1 28071 Madrid Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111 (4) In this Communication, the Commission presented up-to-date statistical data to be used as a basis for the mid-term review of the list of regions qualifying for regional aid status pursuant to Article 107(3)(a) TFEU (hereinafter referred to as "'a' areas"). The annex to this Communication identified those NUTS 2 regions for which the per capita GDP for the period 2012-2014 had fallen to 75% or less of the EU-28 average and that could therefore qualify as 'a' areas from 1 January 2017 until 31 December 2020. (5) Further a Member State may, within the limit of its adjusted specific allocation for ‘c’ areas mentioned in paragraph 10 of the Communication, amend the list of non- predefined ‘c’ areas contained in its regional aid map for the period from 1 January 2017 to 31 December 2020. (6) The Commission invited the Member States concerned to notify the amendments to their regional aid map by 1 September 2016 at the latest. (7) By electronic communication dated 28 July 2016, Spain notified a proposal for amendments to its regional aid map in the context of the mid-term review. (8) On 18 August 2016, the Commission requested additional information, which was provided by the Spanish authorities on 7 September 2016. 2. DESCRIPTION OF THE PROPOSED AMENDMENT (9) In its notification, Spain proposes to amend the Spanish regional aid map 2014-2020 in line with the provisions of the Communication. (10) In particular, Spain proposes to include the following NUTS 2 regions as 'a' areas with a standard aid intensity ceiling of 25% for large enterprises, and this for the period from 1 January 2017 until 31 December 2020: ES42 Castilla-La Mancha, ES61 Andalucía, ES62 Región de Murcia, ES64 Ciudad Autónoma de Melilla. (11) Under the Spanish regional aid map 2014-2020, approved by Commission Decision of 21 May 2014, Castilla-La Mancha and Andalucía were designated as predefined Article 107(3)(c) areas (former 'a' areas) and Región de Murcia and Ciudad Autónoma de Melilla were entirely designated as non-predefined Article 107(3)(c) areas. (12) Further, Spain proposes two modifications to 'c' areas in Catalonia and Balearic Islands, with a total population of 84 977 inhabitants, which corresponds to 0.62% of the total adjusted non-predefined 'c' coverage of Spain4. (13) In Catalonia, Spain proposes to remove eight LAU2 areas5 with a population of 27 191 from the regional aid map approved in 2014 and to replace them by two LAU2 areas with a population of 26 820. 4 The population figures used by the Member State refer to total resident population of 2010 (source: 2010 Spain census- ine). 2 Table 1: LAU2 areas proposed to be removed from the regional aid map approved in 2014 LAU 2 Code LAU 2 Name Population as in the regional aid map approved in 2014 8127 Monistrol de Monserrat 3 027 8098 Sant Salvador de Guardiola 3 078 8254 Santa Maria de Corcó 2 262 17039 Camprodon 2 479 17089 Llagostera 7 915 17145 Ribes de Freser 1 930 17164 Sant Hilari Sacalm 5 729 17200 Tortellà 771 Total population coverage proposed to be included in the amended 27 191 regional aid map (14) Spain proposes to include the following LAU2 areas as 'c' areas in its amended regional aid map as the conditions of criterion 5 of paragraph 168 of the RAG are fulfilled. Table 2: LAU2 areas proposed to be included in the amended regional aid map LAU 2 Code LAU 2 Name Population as in the regional aid map approved in 2014 43171 Vila-seca 21 373 43907 La Canonja 5 447 Total population coverage proposed to be included in the amended 26 820 regional aid map (15) The proposed LAU2 form a contiguous area with the LAU2 areas remaining on the map approved in 2014. They are located in the NUTS3 region of ES514 Tarragona. They are all entire LAU2 areas. They are adjacent to the LAU2 areas remaining on the map that have a standard aid intensity ceiling of 10% for large enterprises. Spain proposes to apply the same standard aid intensity also to the newly included LAU2 for the period from 1 January 2017 until 31 December 2020. (16) In the Balearic Islands, Spain proposes to remove thirteen LAU2 areas with a population of 57 786 from the regional aid map approved in 2014 and to replace them by LAU2 areas with a population of 57 257: Table 3: LAU2 areas proposed to be removed from the regional aid map approved in 2014 LAU 2 Code LAU 2 Name Population as in the regional aid map approved in 2014 07004 Algaida 5 116 07005 Andratx 11 682 07007 Banyalbufar 593 07013 Campos 9 784 07018 Deià 773 5 LAU2: Local Administrative Unit 2 3 07019 Escorca 276 07020 Esporles 4 900 07021 Estellencs 378 07025 Fornalutx 703 07043 Porreres 5 531 07045 Puigpunyent 1 938 07061 Sóller 14 075 07063 Valldemossa 2 037 Total population coverage proposed to be included in the amended 57 786 regional aid map (17) Spain proposes to include the following LAU2 areas as 'c' areas in its amended regional aid map as the conditions of criterion 5 of paragraph 168 of the RAG are fulfilled. Table 4: LAU2 areas proposed to be included in the amended regional aid map LAU 2 Code LAU 2 Name Population as in the regional aid map approved in 2014 07014 Capdepera 11 929 07033 Manacor (Partly, districts 01, 02 and 03) 22 398 07039 Muro 7 001 07055 Santa Margalida 11 626 Palma de Mallorca (partly, sections 38, 39 and 49 of 4 303 district 03) Total population coverage proposed to be included in the amended 57 257 regional aid map (18) The proposed LAU2 areas form a contiguous area with the LAU2 remaining on the regional aid map approved in 2014 and are located within the NUTS3 region of ES532 Mallorca. They are all entire LAU2 areas, with the exception of the parts of the LAU2 of Manacor with a population of 22 398 inhabitants and Palma de Mallorca with a population of 4 303 inhabitants. They are adjacent to the LAU2 areas remaining on the map that have a standard aid intensity ceiling of 10% for large enterprises. Spain proposes to apply the same standard aid intensity also to the newly included LAU2 for the period from 1 January 2017 until 31 December 2020. (19) Spain proposes no other modifications to its regional aid map as approved by Commission decision of 21 May 2014. 3. ASSESSMENT (20) Eurostat data show that the average GDP per capita of the following NUTS 2 regions for the period 2012-2014 has fallen below 75.00% of the EU-28 average: ES42 Castilla- La Mancha (72.67%), ES61 Andalucía (68%), ES62 Región de Murcia (74.67%) and ES64 Ciudad Autónoma de Melilla (68.67%). This is why these regions are listed in Annex I of the Communication as regions that could qualify for regional aid pursuant to Article 107(3)(a) TFEU from 1 January 2017 until 31 December 2020 with an aid intensity of 25%. (21) The amendment proposed by Spain for the 'c' areas does not exceed 50 % of its adjusted non-predefined ‘c’ coverage (29.66%). It covers in fact only 0.62% of this coverage. The population of the newly included regions does not exceed the population of the 4 regions losing their status as regions eligible for regional aid. Spain's proposal regarding the amendment of the list of 'c' areas is in line with the provisions set out in section 5.6.2 of the RAG. (22) The areas proposed fulfil the conditions for eligibility under criterion 5 as they are located within NUTS 2 and NUTS 3 regions recognised in the regional aid map approved in 2014 for the application of criterion 5 and Spain has used the same socioeconomic indicators to select the new areas as those used in the regional aid map approved in 2014.