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T.E. Hr. Urmas PAET Välisminister Islandi Väljak 1 15049 Tallinn Eesti EUROPEAN COMMISSION Brussels, C (2013) Subject

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T.E. Hr. Urmas PAET Välisminister Islandi Väljak 1 15049 Tallinn Eesti EUROPEAN COMMISSION Brussels, C (2013) Subject EUROPEAN COMMISSION Brussels, C (2013) Subject: State aid/ Estonia Aid No SA.36513 (2013/N) Measure 2.7 of the Estonian Rural Development Programme 2007-2013 'Natura 2000 support for private forest land' Sir, The European Commission (hereinafter the Commission) wishes to inform Estonia that, having examined the information supplied by your authorities on the State aid measure referred to above, it has decided not to raise any objections to the relevant measure as it is compatible with the Treaty on the Functioning of the European Union (hereinafter the TFEU). In taking this decision the Commission has relied on the following considerations: 1. PROCEDURE (1) In accordance with Article 108(3) of the TFEU, by letter of 13 May 2013, registered as received on the same date, the Estonian Permanent Representation to the European Union notified the Commission on a simplified notification form the prolongation of the existing aid scheme N213/20101 'Natura 2000 support for private forest land' which is implemented under the Estonian Rural Development Programme 2007-2013. 2. DESCRIPTION OF THE MODIFICATION (2) It is stipulated in the national legislation that the aid applications submitted in year n shall be decided on in year n+1. Therefore, in order to be able to grant aid in respect of applications submitted in 2013, the duration of the measure needs to be extended. (3) With present notification the Estonian authorities wish to extend the duration of the measure until 31 December 2014. (4) The overall budget of the measure is increased from 20.8 million euros to 25.44 million euros. The Estonian authorities have specified that the expected budget in 1 Commission Decision C(2010)4965 of 16 July 2010. T.E. hr. Urmas PAET Välisminister Islandi väljak 1 15049 Tallinn Eesti respect of applications submitted in 2013 is 5.24 million euros. 80% of the budget is financed from EAFRD2 resources and 20% from the state budget. (5) The Estonian authorities have confirmed that the necessary budget is available under the allocations of the Estonian Rural Development Programme 2007-2013. (6) The Estonian authorities have confirmed that all other conditions of the state aid scheme N213/2010 will remain the same as they were approved by the Commission in its decision C(2010)4965 of 16 July 2010. 3. ASSESSMENT OF THE AID SCHEME (7) Article 4(2)(b) 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 Treaty3 states that a simplified notification form can be used when the proposed alteration to an existing aid concerns prolongation by up to six years, with or without an increase in the budget. In case at hand, the modification concerns prolongation of the scheme (cf. point 3) and an increase of the overall budget (cf. point 4). Therefore the simplified procedure is justified. (8) Concerning the compatibility of the scheme with the internal market, the Commission has agreed in its decision C(2010)4965 of 16 July 2010 that the existing measure respects the conditions set out in the Community Guidelines for State Aid in the Agriculture and Forestry Sector 2007 to 20134 (hereinafter the Guidelines), in particular point 176 of the Guidelines and Article 46 of Council Regulation (EC) No 1698/20055 and can therefore be considered as compatible with internal market under Article 107(3)(c) of the TFEU. (9) Point 189 of the Guidelines limits the duration of the schemes covering State aid for measures that can also benefit from co-financing under Regulation (EC) No 1698/2005 to the duration of programming period 2007-2013. (10) Point 173 of the Guidelines stresses the need to assure the consistency of State aid and co-financed support for forestry under Regulation (EC) No 1698/2005. (11) Commission Regulation (EU) No 335/20136 amends Regulation (EC) No 1974/20067 to the extent that the Member States may undertake new legal commitments in 2014- 2015. 2 European Agricultural Fund for Rural Development 3 OJ L 140, 30.4.2004, p.1 4 OJ C 319, 27.12.2006, p.1 5 Council Regulation (EC) No 1698/2006 of 20 September 2005 on support for rural development by the European Fund for Rural Development (EAFRD), OJ L 277, 21.10.2005, p.1 6 Commission Implementing Regulation (EU) No 335/2013 of 12 April 2013 amending Regulation (EC) No 1974/2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), OJ L 105, 13.4.2013, p.1. 7 Commission Regulation (EC) no 1974/2006 of 15 December 2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), OJ L 368, 23.12.2006, p. 15. 2 (12) Newly inserted Article 41b of Regulation (EC) No 1974/2006 restricts Member States from undertaking new legal commitments to beneficiaries if the amount allocated to the programme and/or measure is used up before the final date of eligibility laid down in Article 71(1) of Regulation (EC) No 1698/2005. (13) The Estonian authorities have confirmed that the budget necessary for the measure concerned is available under the allocations of the Estonian Rural Development Programme 2007-2013 (cf. point 5). (14) Therefore it can be concluded that the modified measure will continue to respect the conditions set out in points 176 and 189 of the Guidelines. (15) As the notified measure forms part of the Estonian Rural Development Programme 2007-2013, the Commission reminds the Estonian authorities that references to this decision shall be introduced in the Programme. 4. CONCLUSION (16) In view of the foregoing, the Commission has accordingly decided to consider the modified aid scheme to be compatible with internal market under Article 107(3)(c) of the TFEU. (17) If this letter contains confidential information which should not be published, please inform the Commission within fifteen working days of the date of receipt. If the Commission does not receive a reasoned request by that deadline, you will be deemed to agree to publication of the full text of this letter in the authentic language on the Internet site http://ec.europa.eu/competition/elojade/isef/index.cfm. Your request specifying the relevant information should be sent by registered letter or fax to: European Commission Directorate-General for Agriculture and Rural Development Directorate for Agricultural Legislation Rue de la Loi 200 B-1049 Brussels Fax No: 0032 2 29 67672 Yours faithfully, For the Commission Dacian CIOLOŞ Member of the Commission 3.
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