EUROPEAN COMMISSION Brussels, 16.09.2014 C(2014) 6429 final PUBLIC VERSION This document is made available for information purposes only. SUBJECT: State aid SA.39108 (2014/N) – The Netherlands 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 18 July 2014, registered at the Commission on the same day, the Dutch authorities duly notified a proposal for the Dutch regional aid map for the period from 1 July 2014 to 31 December 2020. 2. DESCRIPTION OF THE NOTIFIED REGIONAL AID MAP (3) In their notification, the Dutch authorities propose to designate seven non-predefined 'c' areas with a total population2 of 1,254,830 inhabitants, or 7.478% of the national population of 16,779,575, as eligible 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. All 1 OJ C 209, 23.7.2013, p.1. 2 All population figures in this document refer to the resident population of the Netherlands of 2013 (source: Centraal Bureau voor de Statistiek (CBS)). Zijne Excellentie de Heer Frans TIMMERMANS Minister van Buitenlandse Zaken Bezuidenhoutseweg 67 Postbus 20061 NL - 2500 EB Den Haag Commission européenne, B-1049 Bruxelles – Belgique - Europese Commissie, B-1049 Brussel – België Tél. +32 22991111 seven non-predefined 'c' areas are proposed in accordance with Criterion 1 of paragraph 168 of the RAG. The Dutch authorities propose a maximum aid intensity for large undertakings of 10% for all these areas. (4) Table 1 below presents the list of proposed non-predefined 'c' areas for which the Netherlands submits that the conditions of Criterion 1 of paragraph 168 of the RAG are fulfilled, along with the maximum aid intensity for large undertakings proposed for each region. The table also shows the total population of each area proposed. Table 1: List of non-predefined 'c' areas proposed under Criterion 1 Name of area proposed NUTS 3 Name of NUTS 3 region Population of Maximum Code concerned the area aid intensity Groningen NL111 Oost-Groningen (Partly) NL112 Delfzijl en omgeving (Partly) 405,775 10% NL113 Overig Groningen (Partly) Drenthe 1 NL131 Noord-Drenthe (Partly) 130,685 10% Drenthe 2 NL132 Zuidoost-Drenthe (Partly) 197,135 10% NL133 Zuidwest-Drenthe (Partly) Zuidoost-Friesland NL123 Zuidoost-Friesland (Partly) 156,090 10% Flevoland NL230 Flevoland (Partly) 126,210 10% Achterhoek NL225 Achterhoek (Partly) 126,065 10% Groot-Rijnmond NL339 Groot-Rijnmond (Partly) 112,870 10% Total 1,254,830 (5) For four (Groningen, Drenthe 2, Flevoland and Groot-Rijnmond) of the above seven proposed areas, the Netherlands proposed parts of LAU 2 areas in application of footnote 74 of the RAG. In the case of the Netherlands, the LAU 2 level refers to the municipality level. To define the parts of the LAU 2 area, the Netherlands used the administrative territorial section 'Buurtcode'. Table 2 below presents the list of partly proposed LAU 2 areas. Table 2: List of partly proposed municipalites with their total population and the population of the part proposed Name of area proposed NUTS 3 Name of Total Population code municipality population proposed Groningen NL113 Groningen 195,418 50,435 Drenthe 2 NL132 Emmen 108,392 50,010 Flevoland NL230 Almere 195,213 50,435 Groot-Rijnmond NL339 Rotterdam 616,294 112,870 (6) The Netherlands confirmed that the proposed maximum aid intensities presented in table 1 above are those for investments by large undertakings. Those intensities can be increased by up to 10 percentage points for medium-sized enterprises and by up to 20 percentage points for small enterprises3. However, the increased maximum aid intensities for for 3 As defined in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). 2 small and medium-sized enterprises are only applicable to projects with eligible expenditure up to EUR 50 million. 3. ASSESSMENT (7) In accordance with Annex I of the RAG, the Netherlands can designate areas containing up to 7.50% of its total national population as non-predefined areas eligible for regional aid under the derogation in Article 107(3)(c) of the TFEU for the period from 1 July 2014 to 31 December 2020. (8) As explained in more detail in the assessment below, the regional map notified by the Netherlands respects all the conditions set out in the RAG. 3.1. Proposed list of non-predefined Article 107(3)(c) areas (9) The non-predefined ‘c’ areas proposed by the Netherlands have a total population of 1,254,830 inhabitants, which represents 7.478% of the total national population. This percentage does not exceed the maximum population coverage of 7.50% allocated to the Netherlands in Annex I of the RAG. (10) Compliance with the population coverage is determined on the basis of the most recent data (2013) on the total resident population of the areas concerned and available at the relevant geographical levels. This is in line with the requirement set out in paragraph 170 of the RAG. (11) In cases where non-predefined 'c' areas are proposed that are not defined as whole NUTS 3 regions or islands, paragraph 169 of the RAG provides that the notion of contiguous areas normally refers to whole LAU 2 areas or to a group of whole LAU 2 areas which share an administrative border with another LAU 2 area in the group. In the case of the Netherlands, the LAU 2 level refers to the municipality level. According to footnote 74 of the RAG, the Member State may nevertheless designate parts of a LAU 2 area, provided that the population of the LAU area concerned exceeds the minimum population required for contiguous areas under Criterion 1 set out in paragraph 168 of the RAG, and that the population of the parts of that LAU area is at least 50% of the minimum population required. The Netherlands used footnote 74 of the RAG in four cases (see table 2 above). Each of the partly proposed municipalities has a total population that exceeds the minimum population of 100,000 inhabitants required for contiguous areas under Criterion 1 and the part proposed has a population of more than 50% of this minimum population of 100,000 inhabitants (i.e. more than 50,000 inhabitants), which is in line with paragraph 169 and footnote 74 of the RAG. (12) The Netherlands propose seven non-predefined 'c' areas in application of Criterion 1 of paragraph 168 of the RAG. According to paragraph 168 of the RAG, a Member State may designate as non-predefined ‘c’ areas under Criterion 1 contiguous areas of at least 100,000 inhabitants located in NUTS 2 or NUTS 3 regions that have a GDP per capita below or equal to the EU-27 average or an unemployment rate above or equal to 115% of the national average. (13) Each of the non-predefined ‘c’ areas proposed by the Dutch authorities satisfies the minimum population size condition applicable for the Member State concerned and the GDP and/or unemployment condition (see table 3 below). Moreover, the Commission has 3 been satisfied that each 'c' area proposed consists of contiguous LAU 2 areas as required in paragraph 169 of the RAG (or parts of LAU 2 areas as required in footnote 74). Table 3: List of non-predefined 'c' areas indicating the population, GDP per capita and unemployment rate for each region Name of area proposed NUTS 3 Name of NUTS 3 region Population GDP U-Rate Code concerned of the area* EU 27=100 NL=100 Groningen NL111 Oost-Groningen (Partly) 72 132 NL112 Delfzijl en omgeving (Partly) 405,775 121** NL113 Overig Groningen (Partly) 119 Drenthe 1 NL131 Noord-Drenthe (Partly) 130,685 99 Drenthe 2 NL132 Zuidoost-Drenthe (Partly) 97 115 197,135 NL133 Zuidwest-Drenthe (Partly) 100** Zuidoost-Friesland NL123 Zuidoost-Friesland (Partly) 156,090 100 Flevoland NL230 Flevoland (Partly) 126,210 96 125 Achterhoek NL225 Achterhoek (Partly) 126,065 100 Groot-Rijnmond NL339 Groot-Rijnmond (Partly) 112,870 132 Total 1,254,830 *: Total resident population in the proposed ‘c’ area in 2013 GDP: GDP per capita in NUTS 2 or NUTS 3 region, measured in PPS, three year average for 2008-2010 (EU-27 = 100.00%), EUROSTAT July 1, 2013 U-Rate: Unemployment rate in NUTS 2 or NUTS 3 region, three year average for 2011-2013 (national average = 100.0%) **: at NUTS 2 level 3.2. Maximum aid intensities (14) Paragraphs 174-176 of the RAG provide that the aid intensity applicable to investments by large undertakings in 'c' areas should not exceed 10% GGE in non-predefined 'c' areas. (15) The Netherlands proposes to limit the maximum aid intensity in all proposed 'c' areas to 10% GGE. Consequently, the maximum aid intensities for regional investment aid in the 'c' areas notified by the Netherlands for the period from 1 July 2014 to 31 December 2020 are in line with the maximum aid intensities allowed for under the RAG.