EUROPEAN COMMISSION Brussels, 3.11.2016 C(2016) 6915 final PUBLIC VERSION This document is made available for information purposes only. Subject: State aid case no. SA.46343 (2016/N) – Germany – Amendment to the regional aid map for Germany (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 German authorities notified their regional aid map, which was approved by the Commission on 11 March 2014 for the period from 1 July 2014 until 31 December 20202 (hereinafter "regional aid map approved in 2014"). (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. 1 OJ C 209, 23.07.2013, p.1 2 Decision for State aid case State aid No. SA.37423 (2013/N) – Germany - Regional aid map 2014-2020, OJ C 280, 22.08.2014, Seiner Exzellenz Herrn Frank-Walter STEINMEIER Bundesminister des Auswärtigen Werderscher Markt 1 D - 10117 Berlin Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111 (3) The Commission published on 25 June 2016 a Communication amending Annex I to the 3 RAG (hereinafter, the "Communication") . (4) 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. (5) The Commission invited the Member States concerned to notify the amendments to their regional aid map by 1 September 2016 at the latest. (6) By electronic communication dated 31 August 2016, Germany duly notified a proposal for amendments to its regional aid map in the context of the mid-term review. By letter of 5 September 2016 (2016/084378), the Commission requested supplementary information which was submitted by letter registered at the Commission on 5 September 2016 (2016/ 084661). 2. DESCRIPTION OF THE PROPOSED AMENDMENT (7) In its notification, Germany proposes to align the list of eligible NUTS 3 regions within the NUTS 1 Mecklenburg-Vorpommern to the administrative delimitations in place at the moment of the mid-term review, i.e. according to the NUTS20134 classification. At the time of approval of the regional state aid map in 2014 the delimitation5 was based on the NUTS20106 classification. The total number of NUTS 3 regions in Mecklenburg- Vorpommern under the NUTS2013 classification is reduced from 18 to 8 in comparison to the situation of the NUTS2010 classification. As Mecklenburg-Vorpommern is a pre- defined ‘c’ area it is entirely covered and there is thus no change in the population coverage. The only effect is that the NUTS 3 regions under the NUTS2013 classification are larger in size and population than the NUTS 3 regions under the NUTS2010 classification. (8) The NUTS 3 region DE80N Vorpommern-Greifswald counts 63 200 inhabitants more and includes the two old NUTS 3 regions DE80F Ostvorpommern, Landkreis and DE80I Uecker-Randow, Landkreis - that were established as bordering areas in the regional aid map approved in 2014 - , and in addition also the old NUTS 3 region DE801 Greifswald, Kreisfreie Stadt as well as two municipalities from the old NUTS 3 region of DE808 Demmin, Landkreis. (9) The entire NUTS 1 region remains a pre-defined ‘c’ area and there is no change in the total population coverage of assisted areas within the region and within Germany. (10) As DE80N Vorpommern-Greifswald borders the Polish 'a' area of PL42 Zachodniopomorskie, which has a standard aid intensity ceiling of 35% for large enterprises, Germany proposes to apply a standard aid intensity ceiling of 20% for large enterprises in DE80N Vorpommern-Greifswald. For the other NUTS 3 regions the maximum aid intensities remain unchanged at 15% for large enterprises until 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 4 http://ec.europa.eu/eurostat/documents/3859598/6948381/KS-GQ-14-006-EN-N.pdf 5 See footnote 55 of the RAG 6 http://ec.europa.eu/eurostat/documents/3859598/5916917/KS-RA-11-011-EN.PDF 2 31.12.2017 and will be reduced as foreseen in the regional aid map approved in 2014 to 10% for large enterprises for the period 1.1.2018-31.12.2020. Table 1: List of predefined 'c' areas proposed for Mecklenburg-Vorpommern NUTS Name of NUTS 2 /NUTS 3 region Maximum aid % Code 1.1.2017- 1.1.2018- 31.12.2017 31.12.2020 DE80 Mecklenburg-Vorpommern DE803 Rostock, Kreisfreie Stadt 15% 10% DE804 Schwerin, Kreisfreie Stadt 15% 10% DE80J Mecklenburgische Seenplatte 15% 10% DE80K Landkreis Rostock 15% 10% DE80L Vorpommern-Rügen 15% 10% DE80M Nordwestmecklenburg 15% 10% DE80N Vorpommern-Greifswald 20% 20% DE80O Ludwigslust-Parchim 15% 10% (11) Germany proposes no other modifications to its regional aid map as approved by Commission decision of 11 March 2014. 3. ASSESSMENT (12) Germany'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. (13) The proposed modification does not entail any swaps of 'c' areas and thus the total population coverage remains identical as it was in the regional aid map approved in 2014. Therefore, the condition that the swaps cannot exceed the 50% of a Member State's adjusted non-predefined ‘c’ coverage is undoubtedly respected. (14) Germany uses the NUTS 2013 classification in force at the time of the review for the proposed modifications to its list of 'c' areas in accordance with footnote 797 of the RAG. The Commission considers that the use of NUTS2013 classification is in line with the provisions set out in section 5.6.2 of the RAG. (15) The NUTS 3 region DE80N Vorpommern-Greifswald is adjacent to the 'a' area PL42 Zachodniopomorskie with a maximum aid intensity of 35% GGE, and is therefore entitled to a maximum aid intensity of 20% GGE. The proposed maximum aid intensity complies with Criterion 4 set out in paragraph 168 of the RAG and with paragraph 176 of the RAG. (16) In accordance with paragraph 177 of the RAG, the maximum aid intensities applicable to large enterprises can be increased by up to 20 percentage points for small enterprises or by up to 10 percentage points for medium-sized enterprises. (17) The Commission notes that all other conditions set out in the Decision of 11 March 2014 on the German regional aid map remain unchanged. 7 According to footnote 79 of the RAG the Commission is to use the NUTS 2 regions defined on the basis of the NUTS nomenclature in force at the time of the mid-term review. 3 4. COMPATIBILITY (18) In view of the above, the Commission concludes that the amendments to the German regional aid map for the period from 1 January 2017 until 31 December 2020, as notified by Germany as part of the mid-term review of its regional aid map 2014-2020, is in line with the RAG. The revised list of regions eligible for regional aid under article 107(3) (a) and (c) from 1 January 2017 until 31 December 2020 is presented in annex. (19) The Commission recalls that the maximum aid intensities specified in the regional aid map apply only to investments carried out in sectors that fall within the scope of the RAG, as defined in paragraph 10 thereof. In particular, these aid ceilings apply to the processing and marketing of agricultural products only to the extent laid down in the Community guidelines for State aid in the agriculture and forestry sector8, or in any guidelines replacing them. 5. CONCLUSION (20) The Commission has accordingly decided: to approve the amendment of the German regional aid map for the period from 1 January 2017 until 31 December 2020 as set out in the Annex, as it fulfils the conditions laid down in the Guidelines on regional State aid for 2014-2020 and the Communication amending Annex I to the Guidelines on regional State aid for 2014- 2020. (21) Any request concerning this letter should be sent by registered letter or fax to: European Commission Directorate-General for Competition State Aid Registry B-1049 Brussels Belgium Fax No: +32 2 29 61242 Yours faithfully For the Commission Margrethe VESTAGER Member of the Commission 8 OJ C319, 27.12.2006, p.1., as amended by the notice published in OJ C390, 24.11.2015, p.4. 4 ANNEX to the decision on case SA.46343 (amending decision on case SA.37423) Guidelines on regional State aid for 2014-2020 (OJ C 209, 23.07.2013, p. 1) Germany - Regional aid map applicable from 1.1.2017 to 31.12.2020 (Approved by the Commission on …) Regions eligible for aid under Article 107(3)(c) TFEU from 1.1.2017 to 31.12.2020 (a) Predefined Article 107(3)(c) areas (Former Article 107(3)(a) areas) NUTS 2 / 3 Name of NUTS 2 / 3 region Maximum aid intensities code (applicable to large enterprises)° 1.1.2017-31.12.2017 1.1.2018-31.12.2020 DE40 Brandenburg DE401 Brandenburg an der Havel, Kreisfreie Stadt 15% 10% DE404 Potsdam, Kreisfreie Stadt 15% 10% DE408 Havelland, Landkreis 15% 10% DE40E Potsdam-Mittelmark, Landkreis 15% 10% DE402 Cottbus, Kreisfreie Stadt 20% 20% DE40B Oberspreewald-Lausitz 15% 10% DE40G Spree-Neiβe, Landkreis 20% 20% DE403 Frankfurt (Oder), Kreisfreie Stadt 20% 20% DE409 Märkisch-Oderland, Landkreis 20% 20% DE40C Oder-Spree, Landkreis 20% 20% DE405 Barnim, Landkreis 20% 20% DE406 Dahme-Spreewald,