EUROPEAN COMMISSION
Brussels,
C(2015)final
Embargo VISTA illimité(*)
Subject:
State Aid / Czech Republic
Aid No SA.42253 (2015/N)
Compensation for damages caused by animal diseases or plant
pests (first amendment of SA.40333 (2015/NN))
Sir,
The European Commission (hereinafter: "the Commission") wishes to inform the Czech
Republic that, having examined the information supplied by your authorities on the
scheme referred to above, it has decided to raise no objections as the scheme is
compatible with the Treaty on the Functioning of the European Union (hereinafter:
"TFEU").
In taking this decision the Commission has relied on the following considerations:
1.
PROCEDURE
(1)
In accordance with Article 108(3) of the TFEU, the Permanent Representation of
the Czech Republic to the European Union notified the Commission of this
scheme by letter of 23 June 2015, registered by the Commission on the same day.
The Czech Republic provided the additional information on 10 July 2015,
registered by the Commission on the same day.
(*) Ce timbre porte sur l'ensemble des documents qui composent le dossier.
PhDr. Lubomír Zaorálek
Ministerstvo zahraničních věcí České republiky
Loretánské náměstí 5
118 00 Praha 1
Česká republika
Commission européenne, B-1049 Bruxelles – Europese Commissie, B-1049 Brussel – Belgium
Telephone: 32 (0) 2 299.11.11
2.
DESCRIPTION OF THE AMENDMENT
2.1.
Amendment
(2)
In line with the first sentence of point (732) of the European Union Guidelines for
State aid in the agricultural and forestry sectors and in rural areas 2014 to 20201
(hereinafter: "the AGRI Guidelines") that entered into force on 1 July 2014, the
currently notified amendment to the aid scheme SA.40333 (2015/NN)
"Compensation for damages caused by animal diseases or plant pests"
(hereinafter the "approved aid scheme") has to be assessed according to the
applicable provisions of the AGRI Guidelines.
(3)
The approved aid scheme SA.40333 provides for compensation for costs and
damages resulting from the implementation of the emergency veterinary and
phytosanitary measures which are imposed to handle an animal disease or plant
pest (recitals (13) and (16) of the approved aid scheme SA.40333). The aid will
only be limited to costs and damages which occurred after the competent authority
has officially acknowledge an outbreak (recital (20) of the approved aid scheme
SA.40333).
(4)
The Czech authorities notified a modification to this approved aid scheme
SA.40333 (2015/NN) which consists of the following amendment.
(5)
Recital (44) of the approved aid scheme excludes undertakings in difficulty within
the meaning of the Guidelines on State aid for rescuing and restructuring nonfinancial undertakings in difficulty2 from being eligible for support under that aid
scheme.3
(6)
However, the Czech authorities take the view that the support to cover costs and
damages resulting from the imposed binding emergency veterinary and
phytosanitary measures to eliminate the risks of spreading animal diseases and
plant pests should be accessible to the broadest possible circle of undertakings
which are active in the primary agricultural production.
(7)
The Czech authorities provided for the following justifications for the inclusion of
certain types of undertakings in difficulty active in the primary agricultural
productions as eligible beneficiaries into the aid scheme SA.40333 (2015/NN).
(8)
The point (26) of the AGRI Guidelines states that it is possible to provide support
for undertakings in difficulty if such difficulties have been caused by the risk
event referred to in Section 1.2.1.3 of the AGRI Guidelines. This risk event
(animal disease and/or plant pest) triggers the granting of support in the approved
aid scheme (recital (16) of the approved aid scheme).
1
OJ C 204, 1.7.2014, p. 1.
Communication from the Commission — Guidelines on State aid for rescuing and restructuring nonfinancial undertakings in difficulty OJ C 249, 31.7.2014, p. 1.
3 The definition of undertakings in difficulty applied under the AGRI Guidelines is identical with that
applied in the Guidelines on State aid for rescuing and restructuring non-financial undertakings in
difficulty.
2
2
(9)
In addition to the above, the provisions of the AGRI Guidelines allow other
exceptions — for reasons relating to the protection of public health and the
emergency situation, no distinction should be made, under certain conditions, as
to the economic situation of an undertaking for aid for eradication measures in the
case of animal diseases referred to in point (375)(c) of section 1.2.1.3 of the AGRI
Guidelines.
(10)
The Czech authorities therefore state that the undertakings in difficulty fulfilling
the criteria stated in recitals (8) and (9) will be eligible for support under the
approved aid scheme SA.40333 (2015/NN) due to the State´s role in the
protection of public health.
(11)
Regarding the further description of the notified aid scheme, it could be referred
to the description of the decision taken on the State aid scheme SA.40333
(2015/NN).
2.2
Other commitments
(12)
The Czech authorities have given their assurances that all other elements of the
aid scheme, as approved by the Commission under the number SA.40333
(2015/NN), remain unchanged.
3.
ASSESSMENT UNDER STATE AID RULES
3.1.
(13)
Presence of State aid within the meaning of Article 107(1) TFEU
As already set out in case SA.40333 (2015/NN), the aid scheme constitutes State
aid within the meaning of Article 107(1) of the TFEU. The notified modification
(inclusion of certain undertakings in difficulty as aid beneficiaries) does not affect
the assessment of the presence of aid in the decision in case SA.40333
(2015/NN), which also applies to the modified scheme.
3.2.
Compatibility of aid pursuant to Article 107(3)(c) TFEU
(14)
The Commission approved the aid scheme SA.40333 (2015/NN) "Compensation
for damages caused by animal diseases or plant pests" on 5 May 2015. The
Commission decision was based on the conditions laid out under Part I, Chapter
3. Common assessment principles and under Part II, Chapter 1, Section 1.2.1.3.
Aid for the costs of the prevention, control and eradication of animal diseases and
plant pests and aid to make good the damage caused by animal diseases and
plant pests.
(15)
The Commission considers that the present modification of the aid scheme does
not alter such assessment of the compatibility of the aid scheme SA.40333
(2015/NN) with the internal market. The proposed amendment consists of the
inclusion of certain undertakings in difficulty into the circle of eligible aid
beneficiaries.
(16)
The Commission considers that the notified measure meets all the conditions of
the above mentioned applicable Chapters of the AGRI Guidelines. In particular:
3
 Point (26) of the AGRI Guidelines provides that undertakings in difficulty
can receive the aid under Section 1.2.1.3 thereof if the financial difficulty
of such undertaking has been caused by the risk event referred to in that
Section 1.2.1.3 (i.e. animal disease or plant pest) (recital (8) above);
 Point (26) of the AGRI Guidelines also provides that for reasons of public
health protection and having in mind the emergency situation, no
distinction should be made, under certain conditions, as to the economic
situation of an undertaking for aid for eradication measures in the case of
animal diseases referred to in point (375)(c) of Section 1.2.1.3 of the
AGRI Guidelines (recital (9) above).
(17)
In view of the above considerations that AGRI Guidelines are complied with, the
Commission considers that the notified amendment of the approved aid scheme
SA.40333 (2015/NN) is compatible with the internal market in accordance with
Article 107(3)(c) TFEU.
4.
CONCLUSION
(18)
The Commission has accordingly decided not to raise objections to the notified
amendment of the aid scheme SA.40333 (2015/NN) on the grounds that it is
compatible with the internal market pursuant to Article 107(3)(c) TFEU.
(19)
If any parts of this letter are covered by the obligation of professional secrecy
according to the Commission communication on professional secrecy and should
not be published, please inform the Commission within fifteen working days of
notification of this letter. If the Commission does not receive a reasoned request
by that deadline the Czech Republic will be deemed to agree to the publication of
the full text of this letter. If the Czech Republic wishes certain information to be
covered by the obligation of professional secrecy please indicate the parts and
provide a justification in respect of each part for which non-disclosure is
requested.
(20)
Your request should be sent electronically via the secured e-mail system Public
Key Infrastructure (PKI) in accordance with Article 3(4) of Commission
Regulation (EC) No 794/20044, to the following address: [email protected].
For the Commission
Phil HOGAN
Member of the Commission
4
Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No
659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty (OJ L 140,
30.4.2004, p. 1).
4