EUROPEAN COMMISSION Competition DG Brussels, C(2006) Subject: State aid N 626/2006 – Spain Regional aid map 2007-2013 Sir, 1. PROCEDURE 1. On 21 December 2005, the Commission adopted the Guidelines on National Regional Aid for 2007-20131 (hereinafter “RAG”). 2. In accordance with paragraph 100 of the RAG, each Member State should notify to the Commission, following the procedure of Article 88(3) of the EC Treaty, a single regional aid map covering its entire national territory which will apply for the period 2007-2013. In accordance with paragraph 101 of the RAG, the approved regional aid map is to be published in the Official Journal of the European Union and will be considered as an integral part of the RAG. 3. On 13 March 2006, a pre-notification meeting between the Spanish authorities and the Commission's services took place. 4. By letter of 19 September 2006, registered at the Commission on the same day with the reference number A/37353, Spain notified its regional aid map for the period from 1 January 2007 to 31 December 2013. 5. By letter of 23 October 2006 (reference number D/59110) the Commission requested from the Spanish authorities additional information. 6. By letter of 15 November 2006, registered at the Commission with the reference number A/39174, the Spanish authorities submitted additional information. 1 OJ C 54, 4.3.2006, p. 13. 2. DESCRIPTION 2.1. Main characteristics of the Spanish Regional aid map 7. Articles 40(1) and 138(1) of the Spanish Constitution establish the obligation of the public authorities to look after a fair distribution of the wealth among and a balanced development of the various parts of the Spanish territory. 8. The different activities developed in the past by the Spanish authorities with a view to reach these aims were affected by the entry of Spain in the European Community in 1986. On the one hand, it was necessary to adapt to the State aid discipline and, on the other hand, Spain began to receive the structural and cohesion funds which have had a very positive macro-economic impact in terms of convergence of the Spanish economy with the EU average. 9. However, the last enlargement of the EU has moved the centre of gravity of the cohesion policy to Eastern Europe and has reduced the volume of European funds set aside to lessen the still existing regional disparities in the EU-15. 10. The new Spanish national framework of reference establishes the basis of the regional programming for the period 2007-2013, in such a way as to allow continuing progress both towards the convergence of the Spanish economy with the Community average and the convergence of the economies of the Spanish regions amongst themselves. Furthermore, even within the Spanish regions with a greater level of development, particular attention is given to certain specific areas that still require it. 11. The assisted population quota assigned to Spain by the new RAG for period 2007-2013 implies, in absolute terms, a reduction of near 20%. However, this does not prevent each Spanish region to be, to different extents, potentially eligible as an assisted area. 12. For this reason, as it is detailed in the following sections, the Spanish proposal tries to maximize the population quota assigned in order to cover the larger possible number of regions, whilst nevertheless maintaining a strong focus on the regions most in need. 2.2. Article 87(3)(a) EC regions proposed for the whole period 2007-2013 13. The following NUTS-II regions and population coverage are proposed for eligibility under the derogation of Article 87(3)(a) EC for the whole period 2007-2013 at a basic aid ceiling of 40%: NUTS Name Population Code ES43 EXTREMADURA 1,081,200 ES70 CANARIAS 1,777,900 14. The following NUTS-II regions and population coverage are proposed for eligibility under the derogation of Article 87(3)(a) EC for the whole period 2007-2013 at a basic aid ceiling of 30%: 2 NUTS Name Population Code ES11 GALICIA 2,732,700 ES42 CASTILLA-LA MANCHA 1,729,900 15. The following NUTS-II region and population coverage are proposed for eligibility under the derogation of Article 87(3)(a) EC for the whole period 2007-2013 at a basic aid ceiling of 40% for the period 1 January 2007 to 31 December 2010 and at a basic aid ceiling of 30% for the period 1 January 2011 to 31 December 2013: NUTS Name Population Code ES61 ANDALUCÍA 7,338,900 2.3. Other Article 87(3)(a) EC regions: Statistical effect regions 16. The following NUTS-II regions and population coverage are proposed for eligibility under the derogation of Article 87(3)(a) EC until 31 December 2010 (statistical effect regions) with an aid ceiling of 30%: NUTS Name Population Code ES12 PRINCIPADO DE ASTURIAS 1,049,100 ES62 REGIÓN DE MURCIA 1,153,600 ES63 CIUDAD AUTÓNOMA DE 75,900 CEUTA ES64 CIUDAD AUTÓNOMA DE 67,500 MELILLA 17. In 2010 an assessment will take place on the basis of the then available three year average of GDP per capita. If the GDP per capita falls under 75% of the EU-25 average, the regions remain eligible under the derogation of Article 87(3)(a) EC with an aid ceiling of 30%, if not they will become eligible under the derogation of Article 87(3)(c) EC with an aid ceiling of 20%. 2.4. Article 87(3)(c) EC regions 2.4.1. Economic development regions 18. The following NUTS-III regions, population coverage and aid intensity are proposed for eligibility pursuant to the derogation under Article 87(3)(c) EC for the whole period 2007-2013 in application of paragraph 30(a) of the RAG: Maximum aid Maximum aid NUTS Populatio Name intensity (%) intensity (%) Code n 01.01.2007 01.01.2011 ES411 AVILA 163,714 30 20 3 ES412 BURGOS (*) 341,479 25 10 ES413 LEÓN 504,011 30 15 ES414 PALENCIA 174,958 27 15 ES415 SALAMANCA 347,638 30 20 ES416 SEGOVIA 145,467 27 15 ES417 SORIA 90,738 30 15 ES418 VALLADOLID 492,594 25 15 ES419 ZAMORA 198,943 30 15 ES521 ALICANTE 1,478,155 30 15 ES522 CASTELLÓN DE LA 473,011 25 10 ES523 VALENCIA (**) 1,384,468 27 15 Total population 5,795,176 (*) Includes the Condado de Treviño which although administratively belongs to the NUTS-III region of ES412 – Burgos is geographically located within the NUTS-III region of ES211 – Álava. (**)Except the municipalities of Valencia and Mislata 2.4.2. Low population density regions 19. The following NUTS-III regions, population coverage and aid intensity are proposed for eligibility pursuant to the derogation under Article 87(3)(c) EC for the whole period 2007-2013 in application of paragraph 30(b) of the RAG: Maximum Maximum NUTS aid intensity aid intensity Name Population Code (%) (%) 01.01.2007 01.01.2011 ES242 TERUEL 136,265 15 15 2.4.3. Other Article 87(3)(c) EC regions designated at NUTS-III level or below 20. The following complete NUTS-III regions, population coverage and aid intensities are proposed for eligibility pursuant to the derogation under Article 87(3)(c) EC for the whole period 2007-2013 in application of paragraph 30(c) of the RAG: NUTS Name Population Maximum aid Maximum aid Code intensity (%) intensity (%) 01.01.2007 01.01.2011 ES130 CANTABRIA 530,639 15 15 ES241 HUESCA 203,256 15 15 Total population 733,895 21. In addition, Spain proposes to designate 7 separate contiguous zones for eligibility pursuant to the derogation under Article 87(3)(c) EC for the whole period 2007-2013 in application of paragraphs 30(c), 30(g) or 30(h) of the RAG. 4 These zones are defined by reference to Local Administrative Units2 (hereinafter, LAU2). The table below lists the regions, the population coverage, aid intensities and justification under the RAG of the five zones proposed. Maximum aid Maximum aid NUTS Justific Name Population intensity (%) intensity (%) code ation From 01.01.2007 From 01.01.2011 ES243 ZARAGOZA (*) 206,437 15 15 30(g) ES220 C.F. DE NAVARRA 55,429 10 10 30(h) ES51 CATALUÑA 102,209 15 15 30(h) ES30 MADRID 76,957 15 15 30(g) ES21 PAIS VASCO 70,236 15 15 30(h) Total population 511,268 (*) The population for Zaragoza results from subtracting to the total population of the NUTS-III ES243 – Zaragoza (826.856 inhabitants), the population corresponding to the LAU2 of Zaragoza (620.419 inhabitants). 22. One single contiguous zone is proposed for designation within the NUTS-III region of ES243 – Zaragoza. It includes 291 LAU2 areas covering the full territory of the region with the exception of the area corresponding to the city of Zaragoza (LAU2 code 50297). 23. The single contiguous zone proposed for designation within the NUTS-III region of ES220 – Comunidad Foral de Navarra includes 139 LAU2 areas corresponding to 18 sub-areas in the Territorial Strategy of Navarra (ETN) with codes: 04.1, 04.2, 04.3, 04.5, 05.2, 05.4, 06.1, 07.1, 07.2, 07.3, 07.4, 07.5, 07.6, 08.1, 09.2, 10.1, 10.2 and 10.3. 24. The single contiguous zone proposed for designation within the NUTS-II region of ES51 – Cataluña includes 34 LAU2 areas corresponding to the “comarcas” of “Berguedà”, “l’Anoia”, “Osona”and “el Bages”. 25. The three separate contiguous zones proposed for designation within the NUTS- III region of ES30 – Madrid comprising 17 LAU2 areas are the “Zona Este- Corredor del Henares”, “Zona Sur” and “Villarejo de Salvanés”.