Consultation paper State aid in the agriculture and forestry sector
- Questionnaire for stakeholders -
Review of Community Guidelines in the agriculture and forestry sector 2007-2013 and of Commission Regulation (EC) No 1857/2006
The purpose of the consultation is to invite all stakeholders to provide comments on the application of the Community Guidelines for State aid in the agriculture and forestry sector 2007-2013 (hereafter: 'GL') and of the Commission Regulation (EC) No 1857/2006 (hereafter: 'ABER').
The Commission invites stakeholders to submit their comments by 20/03/2013.
1. Introduction
State funding meeting the criteria of Article 107(1) of the Treaty on the Functioning of the European Union[1] (hereafter: 'TFEU') constitutes State aid and requires notification to the Commission. Taking account of the specificities of the agricultural sector the Commission adopted the GL[2] applicable to the activities linked to the production, processing or marketing of products listed in Annex I to the Treaty. The GL cover measures linked to rural development, risk and crisis management, forestry and other types of measures such as aid for advertising of agricultural products and aid linked to energy tax exemptions. However, according to Art 109 TFEU, the Council may determine categories of aid that are exempt from the mandatory notification procedure set out in Article108(3)TFEU.
In application of Art 109 TFEU, the Council, by adopting Regulation(EC)No.994/98[3] ('Enabling Regulation') enabled the Commission to declare certain categories of aid compatible with the internal market and exempt from the notification procedure provided that certain ex ante criteria stated in the relevant regulation are fulfilled. Therefore, the Commission adopted the ABER[4] applicable to the activities mentioned above. ABER is based on the GL, but only contains the measures from the GL which are easy to assess by the Member State and do not involve a need for a complex assessment by the Commission.
The ABER simplifies the procedures for granting State aid to SMEs active in the primary production of agricultural products (cf. Art. 1(1) of the ABER) under the following main categories: investment aid, setting up young farmers, producer groups, animal and plant diseases, adverse weather conditions, quality agricultural products, technical support, insurance premiums, livestock sector.
According to the latest version of the State aid scoreboard (autumn 2011)[5] the total amount of State aid granted to the agricultural sector in 2010 was 10.2 billion EUR, out of which 1.7 billion EUR were granted through block exempted measures (14.9%).
State aid in the agricultural sector is also influenced by the policy on rural development (hereafter: "RD"). The current proposal on support for RD by the European Agricultural Fund for Rural Development (EAFRD)[6], submitted by the Commission in October 2011 as part of the package of proposals for the CAP post-2013[7], leads directly to the need to revise the legal basis for State aid in the agricultural sector.
On 8 May 2012, the Commission adopted a Communication[8] on a State aid modernisation package ('SAM'), which launched the political debate on the modernisation of State aid control. Accordingly the review of the agricultural State aid legislation shall be carried out in parallel.
The Commission invites the Member States, institutions and other stakeholders to provide input for the revision of the GL and the ABER. Taking into account its relatively independent operation, the agricultural de minimis Regulation[9] will be reviewed via a separate questionnaire that can be found on the same webpage[10] as this questionnaire. The GL and the ABER contain a variety of measures, many of which are inter-connected with the provisions of the Rural Development Regulation (EC) No 1698/2005[11] (hereafter: RDR).
The public consultation on the Impact Assessment carried out in view of the Commission proposals for the "Common Agricultural Policy towards 2020" also included rural development related issues. In order to avoid confusion of information and overlaps with this previous Impact Assessment, this questionnaire will focus on measures excluding rural development related measures (part IV of the GL and relevant Articles of the ABER). However, respondents are invited to cross-refer to replies in the abovementioned closed consultation[12] if appropriate.
More information and the legal bases can be found on the following webpage: http://ec.europa.eu/agriculture/stateaid/index_en.htm
2. Target group
Institutions, public authorities, citizens, companies, organisations and all other stakeholders affected by the agricultural State aid legislation are welcomed to contribute to this consultation. Contributions are particularly sought from the national authorities dealing with the State aid measures covered by the GL and ABER.
3. How to contribute to the consultation
Replies can be submitted in all official EU languages. However, submissions of replies in one of the Commission's working languages (English, French or German) would be welcomed to enable the Commission to process them more swiftly.
Certain questions are intended specifically for public authorities or certain stakeholders and respondents are, thus, not required to address every question.
In the interests of transparency, organisations have been invited to provide the public with relevant information about themselves by registering in the Interest Representative Register and subscribing to its Code of Conduct. If the organisation is not registered, you can register now on http://europa.eu/transparency-register/index_en.htm. Responses from organisations not registered will be published separately.
If you are a registered organisation, please indicate the name and address of your organisation and your Register ID number under the part 'About you' on page nr4. Your contribution will then be considered as representing the views of your organisation.
The deadline for the replies is 20/03/2013.
Replies should be sent, preferably via e-mail to:
European Commission
Directorate-General for Agriculture and Rural Development
Unit M.2 Competition
Rue de la Loi 130 05/94A
B-1049 Brussels
Belgium
E-mail:
Fax: +32 2 296 76 72
Please note that we only accept filled in templates for the purpose to collect stakeholders' opinions.
4. Results of the consultation
The GL and the ABER expire on 31 December 2013 and are under revision in the context of State aid Modernisation (SAM) and in the light of the new rules that will be applicable to agriculture and rural development under the Multiannual Financial Framework 2014-2020. In this context, the present public consultation offers stakeholders the opportunity to provide input to the Commission at an early stage of policy making. The Commission services plan to make the replies to this questionnaire accessible on its website: http://ec.europa.eu/agriculture/stateaid/policy/consultation/index_en.htm.
In the light of the comments received, the Commission will propose revised versions of the applicable rules.
5. Contact details
Responsible service:
European Commission
Directorate-General for Agriculture and Rural Development
Unit M.2 Competition
E-mail:
Nothing in this consultation may be interpreted as stating an official position of the European Commission.
QUESTIONNAIRE
About You
Specific privacy statement: Received contributions, together with the identity of the contributor, will be published on the Internet, unless the contributor objects to publication of the personal data on the grounds that such publication would harm his or her legitimate interests. In this case the contribution may be published in anonymous form.
For rules on data protection on the EUROPA website, please see: http://ec.europa.eu/geninfo/legal_notices_en.htm#personaldata
01. Do you object to the disclosure of your identity?
Yes No
02. Does any of the exceptions foreseen in Article 4 of Regulation 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents[13] apply to your response? If so, please indicate clearly which parts should not be divulged, justify the need for such confidential treatment and provide also a non-confidential version of your response for publication on the Commission website.
Please provide your contact details below noting that missing or inappropriate data entails the exclusion of your contribution from the consultation:
NameOrganisation represented
Location (country)
Address
Register ID number
E-mail address
Please describe the main activities of your organisation:
03. Please identify whether you represent public authorities or other stakeholders.
04. Please indicate the size of your company (in terms of turnover and number of employees) or your organization (in terms of members).
05. If applicable, please provide the NACE[14] code relevant for the activity of your company.
06. Please indicate whether the Commission services may contact you for further details on the information submitted, if required.
Yes No
Please note that the questionnaire follows the structure of the GL and you are requested to follow the order of the questions, even though you are not required to reply to all questions.
Section a: General policy questions
Questions aiming at all respondents
1. What is your general assessment of the current GL: what has worked well, and what has worked less well? Please substantiate your answer.
2. Concerning the ABER, do you consider that the list of categories of aid which may be block exempted under this regulation, in general reflects adequately market and sector requirements?
Yes No
If no, please substantiate your answer.
3. Have you encountered any difficulty when applying the provisions concerning the principle of incentive effect (points 15-16 of GL, point 22 of ABER)?
Yes No
If yes, please explain.
4. Rural development related agricultural State aid provisions follow the provisions of the RDR (for example in terms of eligible expenditures, aid intensities etc.). On the basis of your experience is there any need for differentiated conditions?
Yes No
If yes, please substantiate your answer.
Questions aiming at public authorities:
5. Do particular factors prevent your authorities from granting a larger proportion of aid through block exempted measures?
Yes No
If yes, please explain.
Specific Provisions
Please note that the rural development related measures which are covered by the current GL and ABER but not mentioned in the present questionnaire were subject to a separate public consultation[15] as mentioned in part I. Introduction.
Section B: Support for the livestock sector (Article 16 of the ABER)
Questions aiming at all respondents:
6. Does the situation on the markets in your view justify the maintenance of the types of aid provided by this measure?
Yes No
Please substantiate your answer.
7. Do you think that the current intensity rates stipulated under this measure should be kept at the same level?
Yes No
If no, please substantiate your answer.
8. Do you think that tests concerning diseases other than TSE/BSE should be also supported?
Yes No
If yes, please substantiate your answer.
Section C: Aid to make good the damage caused by natural disasters or exceptional occurrences (Heading V.B.2 of the Guidelines)
Questions aiming at public authorities:
9. Would you find the possibility to block-exempt aid for damage compensation in relation to certain natural disasters useful under the ABER, even if it was limited just to SMEs?
Yes No
If no, please explain.
Questions aiming at all respondents:
10. Have you encountered any difficulty in understanding the provisions set out in points 120-123 of the GL?
Yes No
If yes, please explain.
Section D: Aid to compensate farmers for losses caused by adverse weather conditions (Heading V.B.3 of the Guidelines and Article 11 of the ABER)
Questions aiming at public authorities:
11. Have you encountered any difficulty in applying the provisions set out under this measure?
Yes No
If yes, please explain.
12. Do you think the current State aid rules adequately address the need for compensation for losses caused by adverse weather conditions?
Yes No
If not, how can the rules be improved in your view?
Section E: Aid for combating animal and plant diseases (Heading V.B.4 of the Guidelines and Article 10 of the ABER)
Questions aiming at public authorities:
13. Have you encountered any difficulty in applying the provisions set out under this measure?
Yes No
If yes, please explain.
14. Do you think the current rules adequately cover the need for State aid towards animal and plant diseases, including aid towards TSE tests?
Yes No
If not, how can the rules be improved in your view?
Section F: Risk and Crisis Management (Chapter V. of the GL)
Questions aiming at all respondents:
15. Do you think that other types of risks or damages could be covered under Chapter V. Risk and Crisis Management of the GL?
Yes No
If yes, please substantiate your answer.
Section G: Aid for Closing of Production, Processing and Marketing Capacity (Heading V.C. of the Guidelines)
Questions aiming at public authorities:
16. Have you granted any aid under this provision?
Yes No
a) If yes, were the beneficiaries
primary producers
and/or processing or marketing companies
Please provide examples.
b) If no, is there any specific reason why you have not granted aid under this provision?
Yes No
If yes, please explain.
Questions aiming at all respondents:
17. Have you encountered any difficulty concerning the conditions set out in point 144 of the GL?
Yes No
If yes, please explain.
18. Do you think the possibility to grant aid for Closing of Production, Processing and Marketing Capacity should remain for:
a) primary production
Yes No
b) processing and marketing
Yes No
Section H: Aid for Advertising of Agricultural Products (Heading VI.D. of the Guidelines)
Questions aiming at all respondents:
19. Have you encountered any difficulty concerning the provisions set out in points 152-159 of the GL?
Yes No
If yes, please explain.
20. Do you think that this measure covers all necessary eligible expenditures?
Yes No
If no, please substantiate your answer.
21. Based on your experience, do you think that the mention of origin should be open to agricultural products not covered by a protected designation of origin (PDO) / protected geographical indication (PGI) label?
Yes No
If yes, please indicate what should be changed, justifying your answer and specifying the terms of such a change.
Section I: Aids linked to tax exemptions under directive 2003/96/EC (Heading VI.F. of the Guidelines)
Questions aiming at public authorities:
22. Point 169 of the GL states that the application of lower minimum level of taxation as set out in Table B of Annex I to Directive 2003/96/EC to products used as motor fuel for the purposes of primary agricultural production will be declared compatible with Article 87(3)(c) of the Treaty, provided no differentiation is made within agriculture. Do you think this provision is appropriate?