Questions on deminimis aid and the application of Regulation (EU) No1407/2013

  1. Under Article3(9) of the new DeMinimis Regulation (No1407/2013), if one undertaking splits into two or more separate undertakings, deminimis aid granted prior to the split is allocated to the undertaking that benefited from it, which is in principle the undertaking taking over the activities for which the deminimis aid was used. If such an allocation is not possible, the deminimis aid is allocated proportionately on the basis of the book value of the equity capital of the new undertakings at the effective date of the split. For the purposes of entering deminimis aid in the register of small-scale state aid, our question is whether the original deminimisaidis registered to the new undertaking as of the date of the split or as of the original date on which the deminimisaidwas granted.

COMP: If possible, as of the granting date as this is the date when the company started benefiting from the aid.

  1. Under the new DeMinimis Regulation, how should the interconnection between undertakings be assessed in the case of a central association and its branches where the central association does not carry out an economic activity (i.e. it does not offer goods or services in the market) and is therefore not an undertaking within the meaning of EU law? Does this also require checking compliance with the conditions under Article2(2) of the new DeMinimis Regulation or is the situation similar to that where, for example, stock or shares are held only by a natural person who does not carry out an economic activity and is therefore not an undertaking within the meaning of EU law?

COMP: Several undertakings linked through a joint stock company, even if that company is only a holding without economic activities of its own, shall be part of the same single undertaking.

  1. To whom should the deminimis aid be recorded in the register of small-scale state aid in the following case?The borough has the same registration number as the city and has its own distinguishing mark. The borough has its own budget, although under law it does not have separate legal personality. The city and the borough do not have any of the relationships with each other set out under Article2(2) of the new DeMinimis Regulation. The legal act granting the aid refers to both the city (because it has its own legal personality and the city council also approved the project) and to the borough. The project falls under the borough’s independent remit and all expenditure is part of its budget. In this case, is there a single undertaking (city and borough) or should the aid be registered to the borough with a threshold of its own of EUR200000?

COMP: We do not readily see the state aid issue here. In the case of intra-state transfers, in principle, there is no State aid involved. If there is State aid, it should be registered to the legal person benefitting from it (i.e. the city).

  1. If an amount of deminimis aid is reduced, for example because of an amendment to the contract, does it still count as the original deminimis aid or is it new deminimis aid that should be recorded in the register of small-scale state aid on the date of entry into force of the amendment (as would be done in the case of an increase in the amount of deminimis aid, which would be regarded as new deminimis aid)?

COMP: A revision of the aid amountshould not be considered new de minimis aid. It is a correction of the previously registered amount and the date of granting is the original date.