Legalize / European Union / Regulation

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

Type Regulation

Publication 2004-04-30

Last updated 2025-08-13

State In force

Department European Commission

Source EUR-Lex

articles 15

Reform history JSON API

2.4.6. Please confirm that the amount of operating aid will not be increased ex-post.

□Yes □No

2.4.7. If the answer to the above question is ‘no’, please explain why in your opinion the possibility of an ex-post increase would not reduce incentives to manage the airport efficiently.

2.5. Incentive effect and proportionality of the aid

2.5.1. In the case of individual operating aid, please describe why there is the likelihood that in the absence of the aid the level of economic activity of the airport concerned would be significantly reduced. Please provide the necessary information on the basis of the business plan (see also point 1.2.3), comparing the levels of intended activity with aid and without aid (the counterfactual scenario), and taking into account the possible presence of investment aid and level of traffic.

In the case of aid schemes, please describe the method applied by the aid granting authority in order to assess the business plans as well as the likelihood that in the absence of aid the level of economic activity of the airport concerned would be significantly reduced, taking into account the possible presence of investment aid and level of traffic.

2.5.2. In the case of individual operating aid, please demonstrate that the business plan of the airport will result in full operating cost coverage by 4 April 2027. Please specify the relevant key parameters of the business plan.

In the case of aid schemes, please confirm that the aid granting authority will grant individual operating aid only if it has concluded that the business plan of the beneficiary airport will result in full operating cost coverage by 4 April 2027. Please specify which key parameters of the business plan the aid granting authorities will assess in order to reach that conclusion in each case.

2.5.3. Please indicate:

In the case of individual operating aid: The beneficiary airport’s initial funding gap over 13 years, starting with the operating cost coverage on 4 April 2014 at the beginning of the transition period and reaching full operating cost coverage achievement by 4 April 2027, at the end of the transition period.

In the case of aid schemes: please commit (a) that the funding gap of eligible airports will be established using the method referred to in point 2.5.2; (b) that eligible airports must demonstrate that they will achieve full operating cost coverage by 4 April 2027.

— The maximum permissible aid amount: …

— The percentage of the funding gap to be covered by the operating aid: …

— The period during which operating aid will be granted: …

2.6. Avoidance of negative effects on competition and trade

2.6.1. Please demonstrate that all airports located in the same catchment area as the eligible airport or airports will be able to achieve full operating cost coverage by 4 April 2027.

2.6.2. Please confirm that the airport or airports, including any investment for which aid is granted, will be open to all potential users and not be dedicated to one specific user.

□Yes □No

2.6.3. Please specify the provisions made to ensure that airport capacity will be allocated to users on the basis of pertinent, objective, transparent and non-discriminatory criteria.

PART III.13.C

Supplementary Information Sheet on start-up aid to airlines

It is recommended that this supplementary information sheet is completed, in addition to the ‘General information’ form in Part I, for the notification of any start-up aid covered by the Guidelines on State aid to airports and airlines ([^E0631]).

This form applies both to the notification of aid schemes and individual aid.

1. Additional information on the beneficiary, project and aid

1.1. Beneficiary

1.1.1. Is the aid awarded directly to the airline operating the new route?


□yes	□no

1.1.2. If the answer to point 1.1.1 is ‘no’: please describe, if applicable, the legal entity or entities (a) receiving the aid; (b) transferring the aid to an intermediate entity or to the airline that operates the new route.

1.1.3. If the answer to point 1.1.1 is ‘no’, please explain how the authorities ensure that the intermediary levels receive no advantage.

1.1.4. In the case of individual aid, please describe the legal, organisational and financial relationships between the recipient of the aid and (a) the undertakings with which it forms part of a group of undertakings; (b) its subsidiaries; (c) any other associated enterprises, including joint ventures.

In the case of aid schemes, please describe the method by which the aid granting authority will assess those legal, organisational and financial relationships:

1.1.5. Selection of the beneficiary: Please describe (a) the procedure by which the beneficiary will be chosen or has been chosen; (b) the medium and level of publicity of the selection procedure; (c) eligibility conditions; (d) operational requirements; (e) selection criteria.

2. Compatibility assessment of the measure

2.1. Contribution to a well-defined objective of common interest

2.1.1. Does the start-up aid:

(a)□ Increase the mobility of Union citizens and the connectivity of the regions by opening new routes?

(b)□ Facilitate regional development of remote regions?

Please explain how the aid contributes to the objective chosen.

2.1.2. In the case of individual aid, please demonstrate that the route or routes to be covered is or are not already covered by a high-speed rail service ([^E0632]) or from another airport in the same catchment area ([^E0633]) under comparable conditions. If conditions are considered not to be comparable, please explain why.

In the case of aid schemes, please explain how the aid granting authority will ensure that the condition in this point is met in each individual case of start-up aid.

2.2. Need for State intervention

2.2.1. Please indicate whether the start-up aid concerns:

(a)□ Routes linking an airport with less than 3 million passengers per annum ([^E0634]) to another airport within the Common European Aviation Area ([^E0635]);

(b)□ Routes linking an airport located in a remote region to another airport (within or outside the Common European Aviation Area) irrespective of the size of the airports concerned;

(c)□ Routes linking an airport with more than 3 million passengers per annum and less than 5 million passengers per annum, not located in remote regions. Please duly substantiate the specific circumstances in this case;

(d)□ Other (Please specify).

2.2.2. In the case of individual aid, please indicate the location of the airports linked by eligible new routes.

2.2.3. In the case of individual aid where the start-up aid is for routes linking an airport not located in a remote region to another airport, please provide the following passenger traffic data of the airports linked by the new route(s):

(a) concerning airports with a commercial passenger traffic history of more than 2 financial years: the average annual passenger traffic during the two financial years preceding the year in which the aid is notified or granted;

(b) concerning airports with a commercial passenger traffic history of less than two financial years: the forecasted average annual passenger traffic during the two financial years after the beginning of the operation of commercial passenger air traffic;

Please provide the data in the form of a table, as follows:

Year	Airport	Airport
Year	Passenger number	Passenger number
Year	Passenger number	Passenger number

Passenger numbers must be counted ‘one-way’ and for each individual route; e.g. passengers flying to the airport and back have to be counted twice. If an airport is part of a group of airports, passenger traffic data must be established on the basis of the individual airport.

2.2.4. In the case of aid schemes, please explain how the aid granting authority will assess on the basis of airport location, passenger traffic data and routes whether there is a need for State intervention in each individual case of start-up aid.

2.3. Appropriateness of the measure

2.3.1. In the case of individual aid: please demonstrate that the aid in question is appropriate to achieve the intended objective or resolve the problems it intends to address. In particular, please explain how the authorities have established that the same objective cannot be reached and the same problem cannot be resolved, with less distortive policy or aid instruments. For example, if the aid is granted in forms that provide a direct pecuniary advantage ([^E0636]), please demonstrate that other potentially less distortive forms of aid such as repayable advances or forms of aid that are based on debt or equity instruments (600) are not appropriate.

2.3.2. In the case of individual aid where the beneficiary airline has prepared a business plan ex-ante for the route receiving the aid: please provide that business plan. That business plan must indicate whether that route has prospects of becoming profitable for the airline without public funding after 3 years.

2.3.3. In the case of individual aid in the absence of an ex-ante business plan for the route receiving the aid: please provide a document showing that the airline in question is irrevocably commited to operate the route for a period which is at least equal to the period during which it received start-up aid.

2.3.4. In the case of aid schemes, please explain how the aid granting authority will assess whether the measure is appropriate in each individual case of start-up aid.

2.4. Incentive effect and proportionality of the measure

2.4.1. In the case of individual aid, please explain why, if available on the basis of a business plan, there is the likelihood that in the absence of aid the level of economic activity of the airline at the airport concerned would not be expanded.

In the case of aid schemes, please describe the method applied by the aid granting authority in order to assess the likelihood that in the absence of aid the level of economic activity of the airline at the airport concerned would not be expanded.

2.4.2. In the case of individual aid, please confirm that the new route will start/started operating only after the application for aid was submitted to the granting authority and provide: (a) a copy of the aid application sent to the granting authority by the beneficiary; (b) documentary evidence of the start date of operations on the new route.

In the case of aid schemes, please confirm that eligible new routes will start operating only after the application for aid was submitted to the granting authority.

2.4.3. Please confirm that the aid will be granted for each route for a maximum period of three years.

2.4.4. Please specify the aid intensity, which is the total aid amount expressed as a percentage of eligible costs ([^E0637]). Both figures must be expressed in net present value terms at the moment the aid is granted and before any deduction of tax or other charges.

2.4.5. Please specify the provisions made to avoid overcompensation and recover excess amounts of aid from the beneficiary airline.

2.4.6. Please specify the measures taken to avoid cross-subsidisation of other routes of the beneficiary airline to and from the airport or airports in question.

2.5. Avoidance of undue negative effects on competition and trade

2.5.1. In the case of individual aid: please confirm that the connection (for example, city-pair) to be operated by the new air route is not already operated by a high-speed rail service or by another airport in the same catchment area under comparable conditions, notably in terms of length of journey. Please see also point 2.1.2.

In the case of aid schemes: Please explain how the aid granting authority will ensure that the condition in this point is satisfied in each individual case of start-up aid.

2.5.2. Please provide evidence that in planning to grant start-up aid to an airline for the new route, whether or not via an airport, the public authority's plans were made or will be made public in good time and with adequate publicity, to enable all interested airlines to offer their services.

2.5.3. Please confirm that the start-up aid in question cannot be combined with any other type of State aid granted for the operation of the same route.

PART III.13.D

It is recommended that this supplementary information sheet is completed, in addition to the ‘General information’ form in Part I, for the notification of any social aid provision covered by the Guidelines on State aid to airports and airlines ([^E0638]).

1. Information on the beneficiary or beneficiaries, the project and the aid

1.1. Please explain the social objective(s) of the notified measure and why you considered that the measure achieves that objective or those objectives.

1.2. Details on the aid envisaged

1.2.1. Please describe (a) the method of awarding and distributing the aid to final consumers; (b) where applicable, please describe the legal entity or entities receiving the aid or transferring the aid to an intermediate entity responsible of distributing it to eligible final consumers.

1.2.2. Please describe the categories of eligible final consumers, for instance passengers with particular needs like children, people with disabilities, people on low incomes, students and elderly people, etc. ([^E0639]).

1.2.3. Please confirm that the aid will effectively benefit eligible final consumers.

1.2.4. Please describe the routes eligible for aid.

1.2.5. Will the aid be granted for passenger transport on a route or on routes linking an airport or airports in a remote region ([^E0640]) with another airport or other airports within the European Economic Area?


□yes	□no

1.2.6. If the answer to point 1.2.5 is ‘yes’, please describe the eligible geographic areas and routes.

1.2.7. Please specify the costs which are to be compensated by the aid and confirm that eligible costs are limited to the price of a return ticket, including all taxes and charges, invoiced by the carrier to the eligible final consumer.

1.2.8. Please confirm that the aid will be granted without discrimination between distribution channels, such as travel agencies, airline ground services and websites.

□

1.2.9. Please describe (a) the procedure by which the air service operator(s) will be selected, has been or have been selected; (b) eligibility conditions and (c) the selection criteria.

1.2.10. Please confirm that the aid will be granted without discrimination as to the origin of the services, that is to say irrespective of the airline operating the services.

□

1.2.11. Please describe the controls and safeguards in force to ensure that the scheme is only used by eligible final consumers and that there is no overcompensation.

PART III.13.E

Supplementary Information Sheet on aid for maritime transport

It is recommended that this supplementary information sheet is completed, in addition to the ‘General information’ form in Part I, for the notification of any measure covered by the the Community guidelines on State aid to maritime transport ([^E0641]) (‘the Guidelines’).

1. Information on the type of scheme

Does the scheme constitute or include:

(a)□ Tonnage Tax

(b)□ a reduction in social contributions

(c)□ a reduction in local taxes

(d)□ a reduction in registration fees

(e)□ aids for training

(f)□ aids for transferring lorries from roads to sea ways

(g)□ a public service contract or award procedure thereof

(h)□ aids of social character

(i)□ other, please describe:

2. Information on eligibility

For categories (a) (b) (c) (d) (e) (f) under point 1, please reply to 2.2 to 2.7:

2.1. What are the eligibility criteria for companies?

2.2. What are the eligibility criteria for boats? In particular, is there an obligation in relation to the flag? What are the flag-related obligations for the fleet of companies entering tonnage taxation scheme after 17 January 2004? Do flag-related obligations apply to the entire fleet of the beneficiary company or only owned fleet and fleet chartered in on bare-boat terms?

2.3. What are the eligibility conditions for the fleet chartered out on bare-boat terms?

2.4. What are the eligibility conditions for time- or voyage-chartered fleet?

2.5. Where appropriate, what are the eligibility criteria for seafarers?

2.6. Describe the list of eligible activities. In particular, does the regime concern: □tug activities? □dredging activities? More generally, are shipping activities other than maritime transport of goods and passengers covered by the aid scheme?

2.7. What are the ring-fence measures to avoid spill-over into other activities of the same company?

For category (g) under point 1:

2.8. What are the public services obligations, the method for calculating the compensations, the different offers submitted in the tender and the reasons for the choice of the designated company?

For category (h) under point 1:

2.9. What are the routes concerned, the populations of users concerned and the conditions attached to the award of individual grants?

3. Information on aid intensity

3.1. What mechanisms are in place to ensure the respect of the aid ceiling specified in Chapter 11 of the Guidelines? How are the relevant records kept?

For category (a) under point 1, please reply to 3.2 to 3.7:

3.2. What are the rates used to calculate the taxable income per 100 NT? Up to 1 000 NT… Between 1 001 and 10 000 NT… Between 10 001 and 20 000 NT… More than 20 001 NT…

3.3. Are companies obliged to set up separate accounts when operating both eligible and non-eligible activities?

3.4. What treatment is applied to groups of companies and intra-group transactions?

3.5. To what extent are the revenues from ancillary activities covered by tonnage tax scheme?

3.6. Are there special taxation rules for ships entering tonnage taxation in a situation when their market value exceeds their tax value?

3.7. Is the normal tax level under Member States' general tax rules applied to remuneration of directors and shareholders of the shipping companies?

For categories (b) (c) and (d) under point 1, please reply to 3.8 to 3.10:

3.8. What is the aid intensity in terms of percentage of the social/fiscal contributions or of the tax or fees that the seafarer or the shipowner should have normally been subject to?

3.9. Or to what level in absolute terms have the contributions, fees or taxes referred to in point 3.8 been limited?

3.10. In case of dredgers and tugboats, is the aid strictly limited to maritime transport part of activities?

3.11. For category (e) under point 1: What is the aid intensity in terms of the cost of the training or the salary of the trainee?

3.12. For category (f) under point 1: What is the amount of aid per tonne kilometre transferred?

3.13. For category (h) under point 1: What is the amount of individual grants?

PART III.14

GENERAL INFORMATION SHEET FOR THE GUIDELINES FOR STATE AID IN THE FISHERY AND AQUACULTURE SECTOR

Please note that this general information sheet for the notification of State aid applies to all sectors covered by the Guidelines for State aid in the fishery and aquaculture sector ([^E0642]) ('the Guidelines'). In addition, for all measures covered by the Guidelines please complete the relevant Supplementary Information Sheet.

COMPATIBILITY ASSESSMENT PURSUANT TO ARTICLE 107(3), POINT (C), OF THE TREATY

On the basis of Article 107(3), point (c), of the Treaty on the Functioning of the European Union (‘the Treaty’), the Commission may consider compatible with the internal market State aid to facilitate the development of certain economic activities, where such aid does not adversely affect trading conditions to an extent contrary to the common interest. In order to make the assessment, the Commission will consider the aspects described in this form.

Does the State aid measure satisfy the following conditions?

First condition:

□ identification of the economic activity concerned;

□ the incentive effect: the aid must change the behaviour of the undertaking(s) concerned in such a way that it engages in an additional activity, which it would not carry out without the aid or it would carry out in a restricted or different manner;

□ the aid does not contravene relevant provisions and general principles of Union law.

Second condition:

□ need for State intervention: the aid measure must bring about a material improvement that the market cannot deliver itself, for example by remedying a market failure or addressing an equity or cohesion concern where applicable;

□ appropriateness of the aid: the proposed aid measure must be an appropriate policy instrument to facilitate the development of the economic activity;

□ proportionality of the aid (aid limited to the minimum necessary): the amount of aid and intensity of the aid must be limited to the minimum needed to induce the additional investment or activity by the undertaking(s) concerned;

□ transparency of aid: Member States, the Commission, economic operators, and the public, must have easy access to all relevant acts and to pertinent information about the aid granted thereunder;

□ avoidance of adverse negative effects of the aid on competition and trade;

□ weighing up the positive and negative effects that aid can have on competition and trade between Member States (balancing test). 1.FIRST CONDITION: THE AID MUST FACILITATE THE DEVELOPMENT OF AN ECONOMIC ACTIVITY 1.1. Aided economic activity To provide the information in this section, please refer to section 3.1.1 (points (39)–(44)) of the Guidelines. 1.1.1.Article 107(3), point (c), of the Treaty provides that the Commission may declare compatible ‘aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest’. Therefore, compatible aid under that provision of the Treaty must contribute to the development of certain economic activity. In order to assess the compliance with points (39) and (40) of the Guidelines, please provide information which would allow the Commission to identify the economic activity/ies that will be supported as a result of the aid and demonstrate how the aid facilitates the development of that activity(ies): … Please note that pursuant to point (41) of the Guidelines, aid to prevent or reduce the negative effects of economic activities on climate or environment or on the conservation objective of the Common Fisheries Policy (‘CFP’) can facilitate the development of economic activities by increasing the sustainability of the economic activity concerned. 1.1.2.Please describe whether and, if so, how the aid contributes to the achievement of the objectives of the CFP, including the objectives of the European Maritime, Fisheries and Aquaculture Fund (the ‘EMFAF’) and describe more specifically the expected benefits of the aid: … Please note that this information is necessary in order for the Commission to assess the compliance of the aid with point (42) of the Guidelines. Please note that pursuant to points (43) of the Guidelines, the Commission considers that aid granted in compliance with Part II, Chapter 1, Sections 1.1, 1.2, 1.3 and 1.4, and Part II, Chapter 3, Sections 3.4, 3.5 and 3.6 of these Guidelines can facilitate the development of the identified economic activity or area, as without aid such development may not take place to the same extent. 1.1.3.Is the aid awarded to individually notifiable investment projects on the basis of a scheme? □yes □no If the answer is yes, please explain how the selected project will contribute towards the objectives of the scheme. For that purpose, please refer to information provided by the applicant for aid. … 1.2. Incentive effect To provide the information in this section, please refer to section 3.1.2 (points (45)- (59)) of the Guidelines. State aid can only be found compatible with the internal market if it has an incentive effect. An incentive effect is present when the aid changes the behaviour of an undertaking in such a way that it engages in additional activity contributing to the development of the sector which it would not have engaged in without the aid or in which it would only have engaged in a restricted or different manner. 1.2.1.In order to assess the compliance with point (45) of the Guidelines, please explain how the measure(s) induces the beneficiary’s undertaking to change its behaviour in such a way that it engages in additional economic activity contributing to the development of the sector, which the beneficiary would not carry out without the aid or would carry out in a restricted or different manner. … 1.2.2.Please confirm that the aid will not simply subsidise the costs of an activity that an undertaking would have incurred in any event and will not compensate for the normal business risk of an economic activity: □yes □no Please note that pursuant to point (45) of the Guidelines, the aid must not subsidise the costs of an activity that an undertaking would have incurred in any event and must not compensate for the normal business risk of an economic activity. 1.2.3.Please confirm that the notified State aid measure is not intended to simply improve the financial situation of undertakings, without any contribution to the development of the fishery and aquaculture sector: □yes □no Please note that pursuant to point (46) of the Guidelines, unless exceptions are expressly provided for in Union legislation or in these Guidelines, State aid measures which are simply intended to improve the financial situation of undertakings but which in no way contribute to the development of the fishery and aquaculture sector, and in particular aid which is granted solely on the basis of price, quantity, unit of production or unit of the means of production are considered to constitute operating aid, which is incompatible with the internal market. Furthermore, by its very nature, such aid is also likely to interfere with the mechanisms regulating the organisation of the internal market. 1.2.4.Does the measure constitute:
— operating aid? □yes □no
— aid to facilitate the achievements of obligatory standards? □yes □no Please note that pursuant to point (47) of the Guidelines, operating aid and aid to facilitate the achievements of obligatory standards are in principle incompatible with the internal market, unless exceptions are expressly provided for in Union legislation or in the Guidelines and in duly justified other cases. If the answer is yes, please mention the provisions of the Guidelines or other Union legislation, that expressly authorise such aid and provide a justification. … 1.2.5.Is the aid granted under Part II, Chapter 1 of the Guidelines limited to helping undertakings active in the fishery and aquaculture sector facing various difficulties despite having undertaken reasonable efforts to minimise such risks? □yes □no Please note that pursuant to point (48) of the Guidelines, aid granted under Part II, Chapter 1 should be limited to helping undertakings active in the fishery and aquaculture sectors facing various difficulties despite having undertaken reasonable efforts to minimise such risks. State aid should not have as an effect to entice undertakings into taking unnecessary risk. Undertakings active in the fishery and aquaculture should themselves bear the consequences of imprudent choices of production methods or products. For example, this principle applies to Part II, Chapter 3, Sections 3.4, 3.5 and 3.6. 1.2.6.Will the beneficiary submit an application for the aid to the national authorities before any work on the project or activity has started? □yes □no Please note that pursuant to point (49) of the Guidelines the aid does not present an incentive for the beneficiary undertaking wherever work on the relevant project or activity has already started prior to the aid application by the beneficiary undertaking to the national authorities. 1.2.7.Will the aid application include at least the applicant's name and the size of the undertaking, a description of the project or activity, including its location and start and end dates, the amount of aid needed to carry it out and the eligible costs? □yes □no 1.2.8.Will the aid be granted to large enterprises ([^E0643])? □yes □no 1.2.9.If the answer to the previous question is yes, will the beneficiaries, which are large enterprises, explain in the aid application the situation without the aid (referred to as the counterfactual scenario or alternative project or activity) and submit documentary evidence in support of the counterfactual scenario described in the application? □yes □no Please note that pursuant to point (51) of the Guidelines, this requirement does not apply to municipalities that are autonomous local authorities with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants. Does the beneficiary municipality meets the conditions of point (51) of the Guidelines? □yes □no 1.2.10.Will the granting authority carry out a credibility check of the counterfactual scenario and confirm that the aid has the required incentive effect? □yes □no Please note that pursuant to point (52) of the Guidelines, a counterfactual scenario is credible if it is genuine and relates to the decision-making factors prevalent at the time of the decision by the beneficiary regarding the project or activity concerned. 1.2.11.Does the aid in the form of tax advantages comply with the following conditions:
(a) the aid scheme establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State; and □yes □no
(b) the aid scheme has been adopted and in force before work on the aided project or activity has started ([^E0644])? □yes □no If the answer is yes, please note that pursuant to point (53) of the Guidelines, such aid is deemed to have an incentive effect. 1.2.12.Does the aid fall under one of the following aid categories of the Guidelines?
□ aid to make good the damage caused by natural disasters or exceptional occurrences, in accordance with Part II, Chapter 1, Section 1.1 of the Guidelines;
□ aid to make good the damage caused by adverse climatic events which can be assimilated to a natural disaster, in accordance with Part II, Chapter 1, Section 1.2 of the Guidelines;
□ aid for the costs of prevention, control and eradication of animal disease in aquaculture and of infestations by invasive alien species, and aid to make good the damage caused by those animal diseases and infestations, in accordance with Part II, Chapter 1, Section 1.3 of the Guidelines;
□ aid to make good the damage caused by protected animals, in accordance Part II, Chapter 1, Section 1.4 of the Guidelines;
□ aid for temporary cessation of fishing activities, in accordance with Part II, Chapter 3, Section 3.5 of the Guidelines;
□ liquidity aid to fishers, in accordance with Part II, Chapter 3, Section 3.6 of the Guidelines;
□ operating aid in outermost regions, in accordance with Part II, Chapter 2, Section 2.1 of the Guidelines;
□ aid for the renewal of the fishing fleet in outermost regions, in accordance with Part II, Chapter 2, Section 2.2 of the Guidelines;
□ aid for investments in equipment that contributes to increasing safety, including equipment enabling vessels to extend their fishing zones, for small-scale coastal fishing in outermost regions, in accordance with Part II, Chapter 2, Section 2.3 of the Guidelines. Please note that pursuant to point (54) of the Guidelines, the above categories of aid are not required to have or are deemed to have an incentive effect.

Additional conditions for individually notifiable investment aid and investment aid to large enterprises under notified schemes

If the aid granted for individual investment, please continue with questions 1.2.13 to 1.2.17 below.

Pursuant to point (59) of the Guidelines, if the aid does not change the behaviour of the beneficiary undertaking by stimulating additional investment, it has no positive effects for the development of the sector concerned. Therefore, aid will not be considered compatible with the internal market if it appears that the same investment would still be pursued without the aid.

1.2.13.Please provide in the notification clear evidence that the aid effectively has an impact on the investment choice. Please explain such impact:

Please note that pursuant to point (55) of the Guidelines, to allow a comprehensive assessment, the Member State must provide not only information concerning the aided project but also a comprehensive description of the counterfactual scenario, in which no aid is granted to the beneficiary by any public authority.

1.2.14.Please provide a comprehensive description of the counterfactual scenario, in which no aid is granted to the beneficiary by any public authority:

Please note that pursuant to point (58) of the Guidelines, where no specific counterfactual scenario is known, the incentive effect can be assumed when there is a funding gap. That is the case when the investment costs exceed the net present value (NPV) of the expected operating profits of the investment on the basis of an ex ante business plan.

1.2.15.Please specify which document(s) related to the investment project under assessment are submitted as part of the notification:

Please note that pursuant to point (56) of the Guidelines, the Member States are invited to draw on genuine and official board documents, risk assessments, including the assessment of location-specific risks, financial reports, internal business plans, expert opinions and other studies related to the investment project under assessment. Those documents need to be contemporary to the decision-making process concerning the investment or its location. Documents containing information on demand forecasts, cost forecasts, financial forecasts, documents that are submitted to an investment committee and that elaborate on various investment scenarios, or documents provided to the financial institutions could help the Member States to demonstrate the incentive effect.

1.2.16.Please specify how will be the level of profitability evaluated:

Please note that pursuant to point (57) of the Guidelines, the level of profitability may be evaluated by using methods that are standard practice in the sector concerned and which may include methods to evaluate the net present value (NPV) ([^E0645]) of the project, the internal rate of return (IRR) ([^E0646]) or the average return on capital employed (ROCE). The profitability of the project is to be compared with normal rates of return applied by the beneficiary in other investment projects of a similar kind. Where these rates are not available, the profitability of the project is to be compared with the cost of capital of the undertaking as a whole or with the rates of return commonly observed in the sector concerned.

1.2.17.Does the investment project present a funding gap, i.e., do the investment costs exceed the NPV of the expected operating profits of the investment on the basis of an ex ante business plan?

□yes □no

If the answer is yes, please provide the details:

Please note that pursuant to point (58) of the Guidelines, when the investment project presents a funding gap, that is when the investment costs exceed the NPV of the expected operating profits of the investment on the basis of an ex ante business plan, the incentive effect can be assumed.

1.3. No breach of relevant provisions of Union law

To provide the information in this section, please refer to section 3.1.3 (points (60) – (64)) of the Guidelines.

1.3.1.Please confirm that the State aid measure, the conditions attached to it, including its financing method when the financing method forms an integral part of the State aid measure, or the activity it finances does not entail a violation of relevant Union law:

□yes □no

Please note that pursuant to point (60) of the Guidelines, if a State aid measure, the conditions attached to it, including its financing method when the financing method forms an integral part of the State aid measure, or the activity it finances entails a violation of relevant Union law, the aid cannot be declared compatible with the internal market.

Please provide information confirming that the aid measure does not entail a violation of relevant Union law:

1.3.2.Please confirm that State aid in the fishery and aquaculture sector is not granted:

(a) □in support of fishing activities involving serious infringements under Article 42 of Council Regulation (EC) No 1005/2008 ([^E0647]) or Article 90 of Council Regulation (EC) No 1224/2009 ([^E0648]) and constituting or supporting illegal, unreported and unregulated (IUU) fishing ([^E0649]);

(b) □in support of the operation, management or ownership of a fishing vessel included in the Union IUU vessel list as referred to in Article 40(3) of Regulation (EC) No 1005/2008, or of a vessel flying the flag of countries identified as non-cooperating third countries as set out in Article 33 of that Regulation.

Please note that pursuant to point (60) of the Guidelines, the Commission will not declare the aid compatible with the internal market, if it supports any of the activities listed in point (61) of the Guidelines.

1.3.3.Please confirm that State aid in the fishery and aquaculture sector is not involving:

(a) □non-compliance with the rules laid down in Regulation (EU) 1379/2013 of the European Parliament and of the Council ([^E0650]) governing the common organisation of the market;

(b) □an increase in fishing capacity or construction of new vessels that directly and automatically lead to non-compliance by the Member State with Article 22(7) of Regulation (EU) 1380/2013 and the fishing capacity ceilings set out in its Annex II.

Please note that pursuant to point (60) of the Guidelines, the Commission will not declare the aid compatible with the internal market, if it supports any of the activities listed in point (61) of the Guidelines.

1.3.4.Is the aid subject to the obligation for the beneficiary undertaking to use national products or services?

□yes □no

If the answer is yes, please note that pursuant to point (62) of the Guidelines, the aid cannot be declared compatible with the internal market.

1.3.5.Does the aid restrict the possibility for the beneficiary undertaking to exploit the research, development and innovation results in other Member States?

□yes □no

If the answer is yes, please note that pursuant to point (62) of the Guidelines, the aid cannot be declared compatible with the internal market.

1.3.6.Please confirm whether the aid is

(a) granted for export-related activities to third countries or to Member States, which would be directly linked to the quantities exported? □yes □no

(b) contingent upon the use of domestic over imported goods? □yes □no

(d) granted to cover any other expenditure linked to export activities? □yes □no

Please note that pursuant to point (63) of the Guidelines, the Commission will not authorise aid for export-related activities to third countries or to Member States which would be directly linked to the quantities exported, aid contingent upon the use of domestic over imported goods, or aid to establish and operate a distribution network or to cover any other expenditure linked to export activities. However, aid towards the cost of participating in trade fairs, or of studies or consultancy services needed for the launch of a new or existing product on a new market in principle does not constitute export aid.

1.3.7.Does the system of financing form an integral part of the aid measure?

□yes □no

If the answer is yes, please specify the system of financing:

Please note that pursuant to point (29) of the Guidelines, when the system of financing, for example by parafiscal levies forms an integral part of the aid measure, it must be notified.

1.3.8.Please provide information on how the national authorities will verify compliance with points (61), (62) and (63) of the Guidelines:

2.SECOND CONDITION: THE AID CANNOT ADVERSELY AFFECT TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST

Pursuant to Article 107(3), point (c), of the Treaty, aid to facilitate the development of certain economic activities or of certain economic areas can be declared compatible only ‘ where such aid does not adversely affect trading conditions to an extent contrary to the common interest ’.

By its very nature, any aid measure generates distortions of competition and has an effect on trade between Member States. However, in order to establish if the distortive effects of the aid are limited to the minimum, the Commission will verify whether the aid is necessary, appropriate, proportionate and transparent.

The Commission will assess the distortive effect of aid in question on competition and trading conditions. The Commission will then balance the positive effects of the aid with its negative effects on competition and trade. Where the positive effects outweigh the negative effects, the Commission will declare the aid compatible with the internal market.

2.1. The need for the State intervention

To provide the information in this section, please refer to section 3.2.1. (points (69)-(71)) of the Guidelines.

2.1.1.Pursuant to points (69) and (70) of the Guidelines, State aid must be targeted to situations where aid can bring about a material development that the market cannot deliver, for example by remedying a market failure to the aided activity or investment in question. State aid measures can indeed, under certain conditions, correct market failures thereby contributing to the efficient functioning of markets and enhancing competitiveness. This holds especially in a context of scarce public resources.

In order to assess the compliance with points (69) and (70) of the Guidelines, please provide all information demonstrating the need for State intervention:

Please note that pursuant to point (71) of the Guidelines, the Commission considers that the market is not delivering the expected objectives without State intervention concerning the aid fulfilling the specific conditions laid down in Part I, Chapter 2, Section 2.3 and Part II, Chapter 1, Sections 1.1, 1.2, 1.3 and 1.4, and Chapter 2, Section 2.2 of the Guidelines. Therefore, such aid will be considered necessary.

2.2. The appropriateness of the aid

To provide the information in this section, please refer to section 3.2.2. (points (72)-(79)) of the Guidelines.

The proposed aid must be an appropriate policy instrument to facilitate the development of the economic activity. There may be other, better placed instruments, such as regulation, market-based instruments, infrastructure development and improvement in the business environment, to achieve the objectives of the aid. The Member State must demonstrate that the aid and its design are appropriate to achieve the objective of the measure at which the aid is targeted.

2.2.1.Please indicate if the aid fulfils the specific conditions laid down for the following categories of aid:

□ aid to make good the damage caused by natural disasters or exceptional occurrences, in accordance with Part II, Chapter 1, Section 1.1 of the Guidelines;

□ aid to make good the damage caused by adverse climatic events which can be assimilated to a natural disaster, in accordance with Part II, Chapter 1, Section 1.2 of the Guidelines;

□ aid for the costs of prevention, control and eradication of animal disease in aquaculture and of infestations by invasive alien species, and aid to make good the damage caused by those animal diseases and infestations, in accordance with Part II, Chapter 1, Section 1.3 of the Guidelines;

□ aid to make good the damage caused by protected animals, in accordance Part II, Chapter 1, Section 1.4 of the Guidelines;

□ aid for the renewal of the fishing fleet in outermost regions, in accordance with Part II, Chapter 2, Section 2.2 of the Guidelines;

□ aid for categories of measures covered by Regulations on block exemptions, in accordance with Part I, Chapter 2, Section 2.3 of the Guidelines;

□ aid measure of the same kind as an operation that is eligible for funding under Regulation (EU) 2021/1139 of the European Parliament and of the Council ([^E0651]).

Pursuant to point (73) of the Guidelines, the Commission considers that aid measures which meet the specific conditions laid down in Part I, Chapter 2, Section 2.3, and Part II, Chapter 1, Sections 1.1, 1.2, 1.3, 1.4 and 1.5, and Part II, Chapter 2, Section 2.2, are an appropriate policy instrument. An aid measure of the same kind as an operation that is eligible for funding under Regulation (EU) 2021/1139 is appropriate if it complies with the relevant provisions of that Regulation.

Appropriateness among alternative policy instruments

2.2.2.Pursuant to point (73) of the Guidelines, please demonstrate that no other less distortive policy instrument exists:

2.2.3.Is the aid to be granted for a fleet measure or for cessation of fishing activities, in accordance with a category of aid under Part II, Chapter 3, of the Guidelines, while the same intervention is concurrently provided for in the relevant EMFAF programme?

□yes □no

If the answer is yes, please set out the advantages of such a national aid instrument compared to the relevant intervention in the EMFAF programme:

Appropriateness among different forms of aid

Pursuant to point (76) of the Guidelines, aid can be granted in various forms. The Member State should however ensure that the aid is granted in the form that is likely to generate the least distortions of trade and competition.

Pursuant to point (79) of the Guidelines, the compatibility assessment of an aid measure with the internal market is without prejudice to the applicable public procurement rules and to the principles of transparency and openness and non-discrimination in the selection process of a service provider.

2.2.4.In order to assess the compliance with point (76) of the Guidelines, please specify the form of the aid and demonstrate that this form is likely to generate the least distortions of trade and competition:

2.2.5.Please confirm whether aid is to be granted in the form provided for:

□ in the applicable Section of the Guidelines

□ in the respective EMFAF intervention in accordance with Regulation (EU) 2021/1139.

Please identiy the relevant aid category, as well as the form of the aid:

Please note that pursuant to point (77) of the Guidelines, the Commission considers that aid granted in the form provided for in these Guidelines or in the respective EMFAF intervention in accordance with Regulation (EU) 2021/1139 is an appropriate form of aid.

2.2.6.Is the aid is granted in form(s) that provide a direct pecuniary advantage (for example, direct grants, exemptions or reductions in taxes, social security or other compulsory charges)?

□yes □no

If the answer is yes, please demonstrate why other potentially less distortive forms of aid (for example, repayable advances or forms of aid that are based on debt or equity instruments ([^E0652])) are less appropriate:

2.3. The proportionality of the aid and cumulation

To provide the information in this section, please refer to section 3.2.3. (points (80)- (104) of the Guidelines.

Aid in the fishery and aquaculture sector is considered to be proportionate, if the aid amount per beneficiary undertaking is limited to the minimum needed for carrying out the aided activity. In order to ensure predictability and a level playing field, the application of maximum aid intensities for aid is foreseen in the Guidelines.

2.3.1.Does the aid amount exceed the eligible costs?

□yes □no

Please note that that pursuant to point (81) of the Guidelines, the aid is considered to be proportionate if it does not exceed the eligible costs.

2.3.2.Are maximum aid intensities and maximum aid amounts calculated as set out in the applicable section of Part II of the Guidelines?

□yes □no

Please explain how the eligible costs are calculated:

Please note that, pursuant to point (83) of the Guidelines, the criterion of proportionality is deemed to be fulfilled only if the eligible costs and the maximum aid intensities or maximum aid amounts are calculated as set out in the Sections of Part II of the Guidelines.

2.3.3.Does the amount of aid respect the applicable maximum intensity of public aid as set in Annex IV to Commission Regulation (EU) 2022/2473 ([^E0653]) for categories of measures covered by that Regulationas set out in Part I, Chapter 2, Section 2.3 of the Guidelines?

□yes □no

Please note that the principle of proportionality is deemed to be respected only if the applicable maximum aid intensity in Regulation (EU) 2022/2473 is not exceeded. If your answer is no, please note that, pursuant to point (84) of the Guidelines, if an aid measure goes beyond the provisions set out in Regulation (EU) 2022/2473, the Member State must demonstrate the justification for and the indispensability of the aid. Please provide the justification for the maximum aid intensity and demonstrate the indispensability of the aid.

2.3.4.Will the maximum aid intensity and aid amount be calculated by the granting authority when granting the aid?

□yes □no

2.3.5.Will the eligible costs be supported by the clear, specific and contemporary documentary evidence?

□yes □no

2.3.6.When calculating the aid intensity and the eligible costs, will all figures be taken before any deduction of tax or other charge?

□yes □no

2.3.7.Is the value added tax (VAT) eligible for aid?

□yes □no

2.3.8.If the answer to the previous question is yes, is the VAT recoverable under national VAT legislation?

□yes □no

Please note that pursuant to point (86) of the Guidelines, value added tax (VAT) is not eligible for aid, except where it is not recoverable under national VAT legislation.

2.3.9.If the aid is granted in a form other than a grant, is the aid amount the gross grant equivalent of the aid?

□yes □no

2.3.10.Is the aid payable in several instalments?

□yes □no

If the answer is yes, will the aid be discounted to its value at the moment of granting the aid?

□yes □no

Please note that, pursuant to point (88) of the Guidelines, the eligible costs must be discounted to their value at the moment of granting the aid. Furthermore, the interest rate to be used for discounting purposes is the discount rate applicable on the date of granting the aid.

2.3.11.If the aid payable in the future, will it be discounted to its value at the moment it is granted?

□yes □no

2.3.12.Is the aid granted by means of tax advantages?

□yes □no

If the answer is yes, is the discounting of aid tranches executed on the basis of the discount rates applicable at the various times the tax advantage takes effect?

□yes □no

2.3.13.Is the aid amount for the measure(s) fixed on the basis of standard assumptions of additional costs and income foregone?

□yes □no

If the answer is yes, please describe the aid category for which it will be applied:

Please note that pursuant to point (90) of the Guidelines, simplified cost options cannot apply to aid set out in Part II, Chapter 1 and Chapter 3 of the Guidelines.

2.3.14.Is the aid granted in one of the following simplified cost options?

□ unit costs;

□ lump sums;

□ flat-rate financing.

If the answer to the previous question is yes, please indicate the method of establishing the aid amount:

□ a fair, equitable and verifiable calculation method based on one or more of the following:
(i) statistical data, other objective information or an expert judgement; or
(ii) verified historical data of individual beneficiary undertakings; or
(iii) the application of usual cost accounting practices of individual beneficiary undertakings;

□ in accordance with the rules for application of corresponding unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation.

As part of the notification, please submit the relevant supporting documentation.

2.3.15.If the measure is co-financed by the Union, are the amounts of eligible costs calculated in accordance with the simplified cost options set out in Regulation (EU) 2021/1060 of the European Parliament and of the Council ([^E0654])?

□yes □no

Please describe the calculation of the eligible costs and submit the relevant supporting documentation:

2.3.16.Is there an insurance available on the market for the risk event in relation to which the aid is grated?

□yes □no

If the answer is yes, please confirm whether the beneficiary has taken out such insurance.

□yes □no

If the answer is no for any of the above two questions, please provide further details:

2.3.17.Regarding aid to compensate for losses caused by adverse climatic events which can be assimilated to a natural disaster, please confirm that aid at the maximum aid intensity will be granted only to undertakings that cannot be covered for such losses by insurance.

□yes □no

Please note that, pursuant to point (93) of the Guidelines, when assessing the compatibility of aid, the Commission will consider any insurance taken out, or which could have been taken out by the aid beneficiary. Regarding aid to compensate for losses caused by adverse climatic events which can be assimilated to a natural disaster, in order to avoid the risk of distorting competition, aid at the maximum aid intensity should be granted only to an undertaking that cannot be covered for such losses by insurance.

Additional conditions for individually notified investment aid and investment aid to large enterprises under notified schemes

2.3.18.In the case of individually notified investment aid, does the aid amount correspond to the net extra costs of implementing the investment in the area concerned, compared to the counterfactual scenario in the absence of aid?

□yes □no

Please describe the counterfactual scenario:

Please note that, pursuant to point (94) of the Guidelines, as a general rule, aid will be considered to be limited to the minimum if the aid amount corresponds to the net extra costs of implementing the investment in the area concerned, compared to the counterfactual scenario in the absence of aid ([^E0655]), with maximum aid intensities as a cap.

2.3.19.Please provide the following information:

(a) the calculation of the investment's Internal Rate of Return (‘IRR’) with and without the aid: …

(b) information on the relevant market benchmarks for the undertaking (e.g., normal rates of return required by a beneficiary to undertake similar projects, cost of capital of the company as a whole): …

(c) explanation of why, on the basis of the above, the aid is the minimum necessary to render the project sufficiently profitable: …

2.3.20.Is the aid amount limited to the minimum necessary to render the project sufficiently profitable?

□yes □no

Please justify your assessment:

Please note that, pursuant to point (95) of the Guidelines, the aid amount should not exceed the minimum necessary to render the project sufficiently profitable. For example, the aid amount should not lead to an increase of its IRR beyond the normal rates of return applied by the undertaking concerned in other investment projects of a similar kind or, if these rates are not available, to an increase of its IRR beyond the cost of capital of the undertaking as a whole or beyond the rates of return commonly observed in the sector concerned

2.3.21.Does the analysis on the proportionality of individually notifiable investment aid use the calculations for the analysis of the incentive effect (points (55) to (58) of the Guidelines)?

□yes □no

Please provide the analysis and demonstrate the proportionality on the basis of supporting documentation (for example, through the documentation set out in point (56) of the Guidelines):

2.3.22.Where the aid granted is granted for investments to large enterprises under notified schemes, is it ensured that the aid amount corresponds to the net extra costs of implementing the investment in the area concerned, compared to the counterfactual scenario in the absence of aid?

□yes □no

Please justify your assessment:

Please note that, pursuant to point (96) of the Guidelines, in order to ensure that the aid amount corresponds to the net extra costs of implementing the investment in the area concerned, compared to the counterfactual scenario in the absence of aid, the method set out in point (95) of the Guidelines must be used together with maximum aid intensities as a cap.

2.3.23.Is the beneficiary a municipality that is an autonomous local authority with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants?

□yes □no

If the answer is yes, please note that points (94) to (97) of the Guidelines do not apply.

Cumulation of aid

2.3.24.Is the notified aid granted concurrently under several schemes or cumulated with ad hoc aid?

□yes □no

If the answer to the previous question is yes, is the total amount of State aid for an activity or project limited to the maximum aid intensity or maximum aid amount laid down in the Guidelines?

□yes □no

2.3.25.Does the notification concern aid with identifiable eligible costs?

□yes □no

If the answer is yes, will that aid be cumulated with other aid concerning different identifiable eligible costs?

□yes □no

If the answer is yes, please provide a justification:

2.3.26.Will the aid with identifiable eligible costs be cumulated with other State aid in relation to the same eligible costs?

□yes □no

If the answer is yes, please confirm that such cumulation does not result in exceeding the highest aid intensity or aid amount applicable to the type of aid under the Guidelines.

□yes □no

Pursuant to point (100) of the Guidelines, the aid with identifiable eligible costs cumulated with any other State aid, in relation to the same eligible costs, can be partly or fully overlapping only if such cumulation does not result in exceeding the highest aid intensity or aid amount applicable to this type of aid under the Guidelines.

2.3.27.Does the notification concern aid without identifiable eligible costs?

□yes □no

If the answer is yes, will that aid be cumulated with other State aid with identifiable eligible costs?

□yes □no

2.3.28.Will the aid without identifiable eligible costs be cumulated with other State aid without identifiable eligible costs?

□yes □no

If the answer is yes, please confirm that such cumulation does not result in exceeding the highest relevant aid intensity or aid amount fixed in the Guidelines or other State aid guidelines, or block exemption regulation or a decision adopted by the Commission.

□yes □no

If the answer is yes, please specify the maximum threshold of the applicable aid instrument:

Pursuant to point (101) of the Guidelines, aid without identifiable eligible costs may only be cumulated with other State aid without identifiable eligible costs, up to the highest relevant total financing threshold fixed in the specific circumstances of each case by the Guidelines or other State aid guidelines, a regulation on block exemption or a decision adopted by the Commission.

2.3.29.Is aid in favour of the fishery and aquaculture sector cumulated with payments referred referred to in Regulation (EU) 2021/1139 in respect of the same eligible costs?

□yes □no

If the answer is yes, will such cumulation respect an aid intensity or aid amount laid down in the Guidelines?

□yes □no

2.3.30.Is the aid combined with Union fund(s) centrally managed by the institutions, agencies, joint undertakings or other bodies of the Union that is/are not directly or indirectly under the control of the Member State?

□yes □no

Please note that pursuant to point (103) of the Guidelines, if the Union funds are not directly or indirectly under the control of the Member State, only the State aid will be considered for determining whether notification thresholds and maximum aid intensities and ceilings are respected, provided that the total amount of public funding granted in relation to the same eligible costs does not exceed the most favourable funding rate(s) laid down in the applicable rules of Union law. Please confirm that this is the case:

□yes □no

Please provide information on the applicable Union law, referred to in point (103) of the Guidelines:

2.3.31.Where the aid authorised under the Guidelines is cumulated with de minimis aid in respect of the same eligible costs, does such cumulation respect an aid intensity or aid amount fixed in the Guidelines?

□yes □no

Pursuant to point (104) of the Guidelines, aid authorised under the Guidelines should not be cumulated with any de minimis aid in respect of the same eligible costs if such cumulation would result in an aid intensity or aid amount exceeding that fixed in these Guidelines.

2.4. Transparency

To provide the information in this section, please refer to section 3.2.4. (points 105 - 108) of the Guidelines.

2.4.1.Will the Member State ensure the publication of the following information in the European Commission’s transparency award module on a comprehensive State aid website at national or regional level?

□ the full text of the aid scheme and its implementing provisions or legal basis for individual aid, or a link to it;

□ the identity of the granting authority/(ies);

□ the identity of the individual beneficiaries, the form and amount of aid granted to each beneficiary, the date of granting, the type of undertaking (SME/ large enterprise), the region in which the beneficiary is located (at NUTS level II) and the principal economic sector in which the beneficiary has its activities (at NACE group level). Such a requirement can be waived with respect of individual aid awards not exceeding the threshold of EUR 10 000 .

2.4.2.Please confirm as regards the aid schemes in the form of tax advantages that the information on individual aid amount is provided in the following ranges (in EUR million):

□ 0,01 to 0,03

□ 0,03 to 0,5;

□ 0,5 to 1;

□ 1 to 2;

□ 2 and more.

2.4.3.Please explain whether the information set out in point (105) of the Guidelines will be published:

□ in the European Commission’s transparency award module ([^E0656]);

□ on a comprehensive national or regional State aid website.

Please provide the link of the comprehensive national or regional State aid website where the information will be published:

2.4.4.Please confirm that such information:

□ will be published after the decision to grant the aid has been taken ([^E0657]);

□ will be kept for at least 10 years;

□ will be available for the general public without restrictions.

2.4.5.Please confirm that reporting and revision as required in Part III, Section 4 will be carried out:

□yes □no

Please note that pursuant to point (108) of the Guidelines, for reasons of transparency Member States must carry out reporting and revision as required in Part III, Section 4 of the Guidelines.

2.5. Avoidance of adverse negative effects on competition and trade

To provide the information in this section, please refer to section 3.2.5 (points (109)-(124)) of the Guidelines.

Aid for the fishery and aquaculture sector may potentially cause product market distortions. Certain aid may raise concerns on building up overcapacity in declining markets regarding the primary production of fisheries and aquaculture products and their processing and marketing. For the aid to be compatible with the internal market, the negative effects of the aid in terms of distortions of competition and impact on trade between Member States must be minimised or avoided.

Even where aid is necessary and proportionate, it may result in a change of the behaviour of the beneficiary undertaking which distorts competition. This is more likely in the fishery and aquaculture sector which differs from other markets due to its specific structure, as it is characterised by a high number of small undertakings involved and by fish stocks being a common, limited resource. On such markets the risk of distortion of competition is high even when only small amounts of aid are granted.

Pursuant to point (110) of the Guidelines, the Commission will identify the market(s) affected by the aid, taking into account the information provided by the Member State on the product market(s) concerned, that, is to say the market(s) affected by the change in behaviour of the aid beneficiary.

2.5.1.Please describe the product market(s) concerned, i.e., the market(s) affected by the change in behaviour of the aid beneficiary.

Please note that in assessing the negative effects of the aid measure, the Commission will focus its analysis of the distortions of competition on the predictable impact the aid in the fishery and aquaculture sector on competition between undertakings in the product market(s) affected ([^E0658]).

2.5.2.Is the aid is well targeted, proportionate and limited to the net extra costs?

□yes □no

Pursuant to point (111) of the Guidelines, if the aid is well targeted, proportionate and limited to the net extra costs, the negative impact of the aid is softened and the risk that the aid will adversely distort competition will be more limited. In order to provide this information, please refer also to Section 2.1.1. of this Information sheet. Please justify your assessment.

2.5.3.Is the maximum aid intensity or aid amount as set out in a specific Section of the Guidelines respected?

□yes □no

Please provide the maximum aid intensity or the aid amount:

The Commission considers that if the maximum aid intensity or aid amount is respected, the negative impact of the aid is softened and the risk that the aid will adversely distort competition is more limited.

Investment aid schemes for the processing and marketing of fishery and aquaculture products

2.5.4.For investment aid schemes for the processing and/or the marketing of fishery and aquaculture products, please demonstrate that any negative effects will be limited to the minimum taking into account, for example, the size of the projects concerned, the individual and cumulative aid amounts, the expected beneficiaries as well as the characteristics of the targeted sectors.

2.5.5.Regarding investment aid schemes for the processing and/or marketing of fishery and aquaculture products, the Member States are encouraged to submit an impact assessment at their disposal as well as ex-post evaluations carried out for similar schemes in order to enable the Commission to assess the likely negative effects of the aid scheme.

— Is an impact assessment submitted together with the notification? □yes □no

— Is an ex post evaluation submitted together with the notification? □yes □no

Individually notifiable investment aid for the processing and/or marketing of fishery and aquaculture products and investment aid to large enterprises under notified schemes

Pursuant to point (116) of the Guidelines, in appraising the negative effects of individual investment aid, the Commission places particular emphasis on the negative effects linked with the build-up of overcapacity in declining markets, the prevention of exit, and the notion of substantial market power. These negative effects are described in points (117) to (124) of the Guidelines and must be counterbalanced with the positive effects of the aid.

2.5.6.In order to allow the Commission to identify and assess the potential distortions of competition and trade, please provide evidence permitting the Commission to identify the product markets concerned (that is to say, products affected by the change in the behaviour of the aid beneficiary) and to identify the competitors and customers/consumers affected:

Pursuant to point (117) of the Guidelines, the product concerned is typically the product covered by the investment project ([^E0659]). When the project concerns an intermediate product and a significant part of the output is not sold on the market, the product concerned may be the downstream product. The relevant product market includes the product concerned and its substitutes considered to be such, either by the consumer (by reason of the product’s characteristics, prices, or intended use) or by the producer (by reason of flexibility of production installations).

Please indicate what you regard as the relevant demand and supply side substitutes in this case. Please provide evidence, from an independent third party, if possible, to support your conclusions on this point.

2.5.7.As a result of the aid, will an additional production capacity be created by the project?

□yes □no

If the answer is yes, please provide an estimate of the additional production capacity created (in volume and value terms):

2.5.8.Please provide information on the performance of the products market affected by the aid, i.e., whether it is growing or underperforming:

2.5.9.If the product market affected by the aid is underperforming, please specify whether, in a long-term outlook, the market is structurally in decline (i.e., it is contracting) or in relative decline (i.e., it is still growing, but does not exceed a benchmark growth rate):

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