Son Excellence Monsieur Didier REYNDERS Ministre Des Affaires Étrangères Rue Des Petits Carmes, 15 B - 1000 Bruxelles
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EUROPEAN COMMISSION Brussels, 16.09.2014 C(2014) 6430 final PUBLIC VERSION This document is made available for information purposes only. SUBJECT: STATE AID NO. SA.38577 (2014/N) – BELGIUM REGIONAL AID MAP 2014-2020 Sir, 1. PROCEDURE (1) On 28 June 2013 the Commission adopted the Guidelines on regional State aid for 2014-20201 (hereinafter "RAG"). Pursuant to paragraph 178 of the RAG, each Member State should notify to the Commission, following the procedure of Article 108(3) of the Treaty for the Functioning of the European Union, a single regional aid map applicable from 1 July 2014 to 31 December 2020. In accordance with paragraph 179, the approved regional aid map is to be published in the Official Journal of the European Union, and will constitute an integral part of the RAG. (2) By electronic notification dated 9 April 2014, registered at the Commission on 9 April 2014 (2014/040538), the Belgian authorities duly notified a proposal for the Belgian regional aid map for the period from 1 July 2014 to 31 December 2020. (3) On 24 April 2014 the Belgian authorities submitted complementary information to their notification, registered at the Commission on 24 April 2014 (2014/045032). (4) On 8 May 2014, the Commission asked further clarifications, which were provided by the Belgian authorities on 26 May 2014 (2014/055666) and 18 July 2014 (2014/075617). On 4 September 2014, the Belgian authorities provided further complementary information. 1 OJ C 209, 23.07.2013, p.1 Son Excellence Monsieur Didier REYNDERS Ministre des Affaires étrangères Rue des Petits Carmes, 15 B - 1000 Bruxelles Commission européenne, B-1049 Bruxelles/Europese Commissie, B-1049 Brussel – Belgium Telephone: 00- 32 (0) 2 299.11.11. 2. DESCRIPTION OF THE NOTIFIED REGIONAL AID MAP (5) In their notification, the Belgian authorities propose one predefined 'c' area with a population of 1.328.760 inhabitants and several non-predefined 'c' areas with a total population of 1.985.710 inhabitants, or 17.89% of the national population, for eligibility for regional aid under the derogation provided in Article 107(3)(c) of the TFEU for the period from 1 July 2014 to 31 December 2020. 2.1 Proposed predefined Article 107(3)(c) area (6) In their notification, the Belgian authorities propose one NUTS 2 region as predefined area eligible for regional aid under the derogation of Article 107(3)(c) TFEU for the period from 1 July 2014 to 31 December 2020, as foreseen in Annex I of the RAG. (7) Table 1 below presents the former 'a' area proposed as predefined 'c' area along with the maximum aid intensities applicable to large undertakings, distinguishing between the period from 1 July 2014 to 31 December 2017 (proposed maximum aid intensity: 15%) and the period from 1 January 2018 to 31 December 2020 (proposed maximum aid intensity: 10%). Table 1: Proposed predefined 'c' area NUTS Code Name of NUTS 2 region Maximum aid intensity 2014-2017 2018-2020 BE32 Prov. Hainaut (Entirely) 15% GGE 10% GGE 2.2 Proposed non-predefined Article 107(3)(c) areas (8) In their notification, the Belgian authorities also propose to designate areas covering 17.89% of the national population as eligible for regional aid under Article 107(3)(c) TFEU for the period from 1 July 2014 to 31 December 2020. This population coverage has been divided amongst the three regions of Belgium as follows: 8% for the Flemish Region, 8% for the Walloon Region and 1.89% for the Brussels Capital Region. Most of these non-predefined 'c' areas are proposed under Criterion 1, one area is proposed under Criterion 2, three areas are proposed under Criterion 4 and two areas are proposed under criterion 5 of paragraph 168 of the RAG. The Belgian authorities propose a maximum aid intensity (applicable to large undertakings) of 10% for all non- predefined 'c' areas. The four tables below also show the total population of each area proposed2. 2.2.1 Proposed non-predefined 'c' areas in application of Criterion 1 of paragraph 168 of the RAG (9) Table 2 below presents the list of proposed non-predefined areas along with the maximum aid intensity applicable to large undertakings proposed for each 2 The population figures (11,099,554 inhabitants for the whole of Belgium) used by Belgium refer to the resident population on 1.1.2013 (source: National Institute for Statistics) 4 region for which Belgium submits that the conditions of Criterion 1 of paragraph 168 of the RAG are fulfilled. Table 2: List of proposed non-predefined 'c' areas proposed under Criterion 1 Name of non-predefined 'c' NUTS Name of NUTS 3 region Population Maximum area proposed Code concerned of the area aid intensity Brussels Capital Region BE100 Région de Bruxelles-Capitale / 209,413 10% GGE Brussels Hoofdstedelijk Gewest (Partly) Limburg BE221 Arr. Hasselt (Partly) 549,262 10% GGE BE222 Arr. Maaseik (Partly) BE223 Arr. Tongeren (Partly) West-Vlaanderen BE252 Arr. Diksmuide (Partly) 143,880 10% GGE BE253 Arr. Ieper (Partly) BE255 Arr. Oostende (Partly) Bassin liégeois BE331 Arr. Huy (Partly) 518,222 10% GGE BE332 Arr. Liège (Partly) BE334 Arr. Waremme (Partly) BE352 Arr. Namur (Partly) Est liégeois BE335 Arr. Verviers – communes 114,814 10% GGE francophones (Partly) BE336 Arr. Verviers – Deutschsprachige Gemeinschaft (Partly) Ardenne BE335 Arr. Verviers – communes 150,830 10% GGE francophones (Partly) BE336 Arr. Verviers – Deutschsprachige Gemeinschaft (Partly) BE342 Arr. Bastogne (Partly) BE343 Arr. Marche-en-Famenne (Partly) BE344 Arr. Neufchâteau (Partly) BE351 Arr. Dinant (Partly) Total 1,686,421 (10) For the Brussels Capital Region Belgium proposed parts of Electoral Cantons in application of footnote 74 of the RAG. Table 3 below presents the list of partly proposed LAU areas. Table 3: List of the proposed parts of LAU areas (electoral cantons) Name of Electoral Total population of the Population of the Canton concerned Electoral Canton proposed 'c' area Anderlecht 136,872 50,434 Bruxelles 168,576 51,261 Molenbeek-Saint-Jean 188,753 53,694 Uccle 134,511 54,024 5 2.2.2 Proposed non-predefined 'c' areas in application of Criterion 2 of paragraph 168 of the RAG (11) Table 4 below presents the list of proposed non-predefined areas along with the maximum aid intensity applicable to large undertakings proposed for each region for which Belgium submits that the conditions of Criterion 2 of paragraph 168 of the RAG are fulfilled. Table 4: Proposed non-predefined 'c' area in application of Criterion 2 of paragraph 168 of the RAG Name of non-predefined 'c' area NUTS Name of NUTS 3 region Population Maximum proposed Code concerned of the area aid intensity Eeklo BE233 Arr. Eeklo (Entirely) 82,896 10% GGE 2.2.3 Proposed non-predefined 'c' areas in analogy with Criterion 4 of paragraph 168 of the RAG (12) Table 5 below presents the list of proposed non-predefined areas along with the maximum aid intensity applicable to large undertakings proposed for each region for which Belgium submits that the conditions are fulfilled in analogy with Criterion 4 of paragraph 168 of the RAG. Table 5: List of non-predefined 'c' areas proposed under Criterion 4 Name of adjacent ex- NUTS Name of NUTS 3 region concerned Population Maximum aid 'a' area Code of the area intensity BE32 Prov. Hainaut BE235 Arr. Oudenaarde (Partly: Ronse) 25,565 10% GGE BE253 Arr. Ieper (Partly: Wervik) 18.398 10% GGE BE352 Arr. Namur (Partly: Sambreville, Jemeppe sur Sambre) 46.298 10% GGE Total 90.261 (13) In the past a number of municipalities were accepted as 'c' areas due to the fact that they were adjacent to the Province of Hainaut (which was eligible as an 'a' region) and that they have the same socio-economic characteristics as the Province of Hainaut. According to the Belgian authorities this situation has not changed. These adjacent municipalities are still an integral part of the wider economic region of Hainaut. They suffer from the same problems as Hainaut (a per capita income that is well below the Belgian average and even below that of neigbouring municipalities of the Province of Hainaut and unemployment rates, as in Hainaut, well above the Belgian average. 2.2.4 Proposed non-predefined 'c' areas in application of Criterion 5 of paragraph 168 of the RAG (14) Table 6 below presents the list of proposed non-predefined areas along with the maximum aid intensity applicable to large undertakings proposed for each region for which Belgium submits that the conditions of Criterion 5 of paragraph 168 of the RAG are fulfilled. 6 Table 6: List of non-predefined 'c' areas proposed under Criterion 5 Name of non-predefined 'c' area NUTS Name of NUTS 3 region Population Maximum aid proposed Code concerned of the area intensity Antwerpen (Kempen) BE213 Arr. Turnhout (Partly) 66,147 10% GGE Zone brabançonne BE310 Arr. Nivelles (Partly) 58,093 10% GGE Total 124,240 (15) Both areas suffer from their dependence on the metallurgy and metal products industry. The Belgian authority claim that in the Turnhout area 40% of the industrial employment is in this sector (with 22% job losses in the last 5 years) and that Tubize is still confronted with the effects of the restructuration of the Forges de Clabecq. 2.3 Maximum aid intensities for SMEs (16) In accordance with paragraph 177 of the RAG, the above mentioned maximum aid intensities applicable to large undertakings can be increased by up to 20 percentage points for small enterprises or by up to 10 percentage points for medium-sized enterprises. However, the increased maximum aid intensities for SMEs3 will not apply to aid awarded for large investment projects with eligible expenditure above EUR 50 million.