EUROPEAN COMMISSION Brussels21.05.2014 C(2014) 3160 final PUBLIC VERSION This document is made available for information purposes only. Subject: State aid No. SA.37825 (2014/N) – Austria Regional aid map for Austria (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 on 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 of the RAG, 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 letter dated 3 February 2014, registered at the Commission on 3 February 2014 (2014/011323), the Austrian authorities submitted their proposal for a regional aid map applicable for the period from 1 July 2014 to 31 December 2020. 3. On 3 March 2014, the Commission requested additional information (2014/022826), which was provided by the Austrian authorities on 31 March 2014 (2014/036767). 2. DESCRIPTION 4. In their notification, the Austrian authorities propose a list of regions, with a total population of 2,186,465 million inhabitants, or 25.87% of the national population, for eligibility for regional aid on the basis of the derogation provided for in Article 107(3)(c) of the TFEU for the period from 1 July 2014 to 31 December 2020. The notification lists only non-predefined 'c' areas. 1 OJ C 209, 23.07.2013, p.1 Seiner Exzellenz Herrn Sebastian KURZ Bundesminister für europäische und internationale Angelegenheiten Minoritenplatz 8 A - 1014 Wien Commission européenne, B-1049 Bruxelles – Belgique Europese Commissie, B-1049 Brussel – België Telefon: 00 32 (0) 2 299.11.11 5. The Austrian authorities propose to designate several non-predefined areas as eligible for regional aid on the basis of the derogation provided for in Article 107(3)(c) TFEU in accordance with the criteria set out in paragraph 168 of the RAG. The tables 1 to 4 below present the list of non-predefined 'c' areas proposed, along with the maximum aid intensity proposed for each area. The tables also show the total population of each zone proposed2. A more detailed description of the composition of each non- predefined 'c' area is presented in Annex 1. 2.1 Proposed non-predefined 'c' areas in application of Criterion 1 of paragraph 168 of the RAG 6. Table 1 below presents the list of areas, along with the maximum aid intensities proposed for each region, for which Austria submits that the conditions of criterion 1 of paragraph 168 of the RAG are fulfilled: Table 1: List of non-predefined 'c' areas proposed under Criterion 1 Code Name of NUTS2/NUTS3 region Population Maximum aid intensity AT11 Burgenland 286,691 10% AT121 Mostviertel-Eisenwurzen (partly) 85,701 10% AT122 Niederösterreich-Süd (partly) 179,167 10% AT124 Waldviertel (partly) 175,272 10% AT125 Weinviertel (partly) 108,036 10% AT126 Wiener Umland Nord (partly) 70,730 10% AT211 Klagenfurt-Villach (partly) 31,525 10% AT212 Oberkärnten (partly) 86,140 10% AT213 Unterkärnten (partly) 123,995 10% AT224 Oststeiermark (partly) 200,218 10% AT225 West- u. Südsteiermark (partly) 155,659 10% AT226 Westliche Obersteiermark (partly) 86,714 10% AT311 Innviertel (partly) 157,425 10% AT313 Mühlviertel (partly) 149,135 10% Total 1,896,408 2.2 Proposed non-predefined 'c' areas in application of Criterion 2 of paragraph 168 of the RAG 7. Table 2 below presents the list of areas, along with the maximum aid intensities proposed for each region, for which Austria submits that the conditions of criterion 2 of paragraph 168 of the RAG are fulfilled: Table 2: List of non-predefined 'c' areas proposed by Austria under Criterion 2 Code Name of NUTS3 region Population Maximum aid intensity AT321 Lungau 20,668 10% AT333 Osttirol 49,071 10% Total 69,739 2 The population figures used by the Member State refer to the total resident population of 1 January 2013. Source: Statistik Austria, http://www.statistik.at 2.3 Non-predefined 'c' areas in application of Criterion 3 of paragraph 168 of the RAG 8. Table 3 below presents the list of areas, along with the maximum aid intensities proposed for each region, for which Austria submits that the conditions of criterion 3 of paragraph 168 of the RAG are fulfilled: Table 3: List of non-predefined 'c' areas proposed by Austria under Criterion 3 Code Name of NUTS 3 region Population Maximum aid intensity AT334 Tiroler Oberland (partly) 10,018 10% AT341 Bludenz-Bregenzer Wald (partly) 13,643 10% Total 23,661 2.4. Non-predefined 'c' areas in application of Criterion 5 of paragraph 168 of the RAG 9. Table 4 below presents the list of areas, along with the maximum aid intensities proposed for each region, for which Austria submits that the conditions of criterion 5 of paragraph 168 of the RAG are fulfilled: Table 4: List of Non-predefined 'c' areas proposed by Austria under Criterion 5 Code Name of NUTS3 region Population Maximum aid intensity AT223 Östliche Obersteiermark (partly) 156,458 10% AT222 Liezen (partly) 40,199 10% Total 196,657 10. The Austrian authorities confirm that the proposed maximum aid intensities presented in the tables above are those for investments by large enterprises. Those intensities can be increased by 10 percentage points for medium-sized enterprises and by 20 percentage points for small enterprises3. The maximum regional aid ceilings proposed for large enterprises, as well as the increased ceilings for small and for medium-sized enterprises, are only applicable to projects with eligible expenditure below € 50 million. 3. ASSESSMENT 3.1. Proposed list of non-predefined Article 107(3)(c) TFEU areas 11. According to Annex I of the RAG, Austria can designate areas with a population of up to 25.87% of the total national population as non-predefined areas eligible for regional aid under the derogation of Article 107(3)(c) TFEU for the period from 1 July 2014 to 31 December 2020. Compliance with the population coverage allowed will be determined on the most recent data of total resident population of the areas concerned as published by the national statistical office. 12. The non-predefined ‘c’ areas proposed by Austria have a total population of 2 186 465 inhabitants, which represents 25.87% of the total national population. The population coverage of the proposed non-predefined ‘c’ areas is in line with the maximum population coverage allocated to Austria for this type of regions in Annex I of the RAG. 13. The population statistics used are the most recent data of total resident population published by the Central Statistical Office of Austria4. 3 As defined in the Annex to Commission Regulation (EC) No 364/2004 of 25 February 2004 amending Regulation (EC) 70/2001, OJ L 63, 28.2.2004, p. 22, or any successor regulation. 4 Statistik Austria, http://www.statitik.at 14. The statistics on unemployment are the average unemployment rates for the period 2010-2012 at NUTS 2 level and those calculated for the period of 2009-2011 at NUTS 3 level (i.e. the last three years for which such data are available), as published by the national statistical office. This is in line with the requirement set out in footnote 68 of the RAG. 3.1.1. Non-predefined 'c' areas in application of Criterion 1 of paragraph168 of the RAG 15. According to paragraph168 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. 16. Each of the non-predefined ‘c’ areas proposed by Austria under Criterion 1 satisfies the minimum population size condition and the GDP and/or unemployment condition (see table 5 below). Moreover, the Commission notes that each 'c' area proposed under Criterion 1 consists of contiguous LAU 2 areas or parts of LAU 2 areas as required in paragraph 169 of the RAG. Table 5: List of non-predefined 'c' areas in application of Criterion 1 of paragraph 168 of the RAG indicating the population, the GDP per capita or the unemployment rate for each region concerned Name of contiguous area proposed NUTS Name of NUTS 2 and Population GDP U-Rate Code NUTS 3 region concerned Burgenland AT11 Burgenland 286,691 84.67% Part of Mostviertel-Eisenwurzen, AT121 Mostviertel-Eisenwurzen 85,701 94.33% Niederösterreich-Süd, Waldviertel, AT122 Niederösterreich-Süd 179,167 90.67% Weinviertel, Wiener Umland Nord AT124 Waldviertel 175,272 84.67% AT125 Weinviertel 108,036 67.00% AT126 Wiener Umland Nord 70,730 90.67% Part of Kärnten AT211 Klagenfurt-Villach 31,525 131.2%* AT212 Oberkärnten 86,140 85.67% AT213 Unterkärnten 123,995 89.67% Part of Oststeiermark, West- and AT224 Oststeiermark 200,218 86.67% Südsteiermark, Westliche AT225 West- and Südsteiermark 155,659 82.67% Obersteiermark AT226 Westliche Obersteiermark 86,714 90.33% Part of Innviertel AT311 Innviertel 157,425 97.00% Part of Mühlviertel AT313 Mühlviertel 149,135 73.67% Total 1,896,408 Population: Total resident population in the proposed ‘c’ area on 01.01.2013 U-Rate: Unemployment rate in NUTS 2 three year average for 2010-2012 (National average = 100.0%) 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 21 March 2013 * at NUTS 2 level 3.1.2.