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There are currently no known outstanding effects for the Commission Decision of 29 June 2011 on State aid SA.14554 (C 7/04) implemented by Germany for the Gesellschaft für Weinabsatz (Wine Marketing Company) (notified under document C(2011) 4426) (Only the German text is authentic) (2012/268/EU), Introductory Text.
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THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 108(2)(1) thereof,
Having called on interested parties to submit their comments pursuant to the provision cited above(2),
Whereas:
I. PROCEDURE
II. DETAILED DESCRIPTION OF THE AID
(EUR) | |
Liabilities to | Amount |
---|---|
WAK | 10 150 959 |
Financial institutions | 726 892 |
Suppliers | 218 460 |
Winegrowing enterprises and merchants | 4 355 581 |
Other | 218 263 |
Total | 15 670 155 |
(EUR) | |
11.11.1999 | 5 936 061,62 |
25.11.1999 | 6 868 777,04 |
1.12.1999 | 585 429,72 |
13.12.1999 | 112 110,66 |
17.12.1999 | 1 800 317,21 |
Total | 15 302 696,25 |
4th quarter 1999 | 3,28 % |
1st quarter 2000 | 3,51 % |
2nd quarter 2000 | 4,15 % |
3rd quarter 2000 | 4,8 % |
4th quarter 2000 | 5,15 % |
2001 | 4,55 %-5,25 % |
III. COMPLAINTS AND INFORMATION FROM THIRD PARTIES
IV. COMMENTS FROM INTERESTED PARTIES
V. COMMENTS FROM GERMANY
Volume | Price/litre (EUR) | |
---|---|---|
Distillation | 40 % | 0,50-0,55 |
EU subsidy for stocking of wine/must (1 year): EUR 0,06/l and subsequent sale as raw wine for sparkling wine | 20 % | 0,435 |
Sale as raw wine for sparkling wine | 40 % | 0,375 |
Price/litre (EUR) | |
---|---|
Purchase price and processing | 0.37-0,38 |
Income from sale as raw wine for sparkling wine, distillation, stocking subsidies | 0,44-0,46 |
Expected profit | 0,06-0,09 |
a subordination of claims of the same amount as the deficit after the winegrowing enterprises and merchants had agreed to waive 90 % of their remaining claims,
to, but only if necessary, waive the amount of claim they had agreed to subordinate.
If WAK had not subordinated and waived its claims and interest payments GfW would have had to apply for insolvency and GfW would have been wound up. WAK’s claims would have had to be met from the sale of GfW’s stocks.
If the company had been wound up the value of GfW’s stocks would have fallen. The actual proceeds from the sale of the stocks would have been only about 50 % to 70 % of the book value. Therefore, allowing for security rights, the proceeds would have amounted to between EUR 1,84 million and EUR 2,4 million.
Insolvency proceedings are costly.
The German Insolvency Law (‘InsO’) provides for a right to separation for products with retention of title; however, this is determined on the basis of the insolvency administrator’s option to choose between performance of the contract and separation of assets (paragraph 103 InsO). Separation of assets is possible only if the insolvency administrator refuses to perform the contract, in which case the creditor can withdraw from the contract and demand the separation of the assets, and is entitled to compensation for non-performance of the contract. Down payments may be offset. In return, GfW can claim recovery of the payments already made, which may be offset against the compensation for non-performance of the contract.
By contrast, after WAK subordinated part of its claims, it was legally possible for GfW to avoid insolvency proceedings and after waiving part of its claims and interest payments, WAK had outstanding claims of EUR 5,15 million which it could expect to recover as a result of the fact that GfW could continue trading.
It is also pointed out that if insolvency proceedings had been opened the repayments on the loan of EUR 1 440 476,92 made by GfW to WAK in the period 1 November to 31 December 2000 could have been contested by GfW under the insolvency rules. This would have led to WAK being obliged to repay these funds.
VI. ASSESSMENT OF THE AID
aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment, nor
aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State, nor
aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Union to an extent that is contrary to the common interest.
VII. CONCLUSIONS
HAS ADOPTED THIS DECISION:
With effect from 1 December 2009, Articles 87 and 88 of the EC Treaty have become Articles 107 and 108, respectively, of the TFEU. The two sets of provisions are, in substance, identical. For the purposes of this Decision, references to Articles 107 and 108 of the TFEU should be understood as references to Articles 87 and 88, respectively, of the EC Treaty where appropriate.
The complainant sent reminding letters to the Commission, but did not submit additional formal comments.
Council Regulation (EEC) No 822/87 of 16 March 1987 on the common organization of the market in wine (OJ L 84, 27.3.1987, p. 1), as of 1 August 2000 Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine (OJ L 179, 14.7.1999, p. 1).
See, for example, Council Decision 2000/808/EC of 19 December 2000 on the granting of exceptional national aid by the authorities of the Federal Republic of Germany for the distillation of certain wine sector products (OJ L 328, 23.12.2000, p. 49).
ECJ, 21.3.1990, Belgium v Commission (Tubemeuse), C-142/87, ECR I-959.
ECJ, 29.4.1999, Spain v Commission, C-342/96, ECR I-2459.
ECJ, 22.11.2007, Spain v Lenzing, C525/04, ECR I-9947.
CFI, 11.7.2002, HAMSA v Commission, T-152/99, ECR II-3049.
Commission decision, 25.9.2007, on State aid C 32/06 (ex N 179/06) implemented by Poland for Huta Cynku Miasteczko Śląskie SA, 2008/142/EC.
Wirtschaftsprüfungsgesellschaft Falk & Co. GmbH.
See in particular the judgment of the ECJ, 13.7.1988, France v Commission, C-102/87, ECR 4067.
Germany’s intra-Community trade in wine amounted to 10 364 600 litres (imports) and 1 881 900 litres (exports) in 1999. No data are available for Rhineland-Palatinate. (Source: Federal Statistical Office.)
ECJ, 11.7.1996, SFEI and Others, C-39/94, ECR I-3547, paragraph 60.
ECJ, 14.2.1990, France v Commission, C-301/87, ECR I-307, paragraph 41.
ECJ, 17.9.1980, Philip Morris v Commission, C-730/79, ECR 2671.
See footnote 10.
See footnote 11.
See footnote 12.
See footnote 13.
See footnote 13.
See footnote 14.
ECJ, 29.4.1999, Spain v Commission, C-342/96, ECR I-2459, paragraph 46; ECJ, 29.6.1999, DMT, C-256/97, ECR I-3913, paragraph 24; and CFI, 11.7.2002, HAMSA v Commission, T-152/99, ECR II-3049, paragraph 168.
http://www.doerr-weinkommission.de/fileadmin/user_upload/agb_doerr.pdf
http://www.bundeskartellamt.de/wDeutsch/download/pdf/Merkblaetter/Merkblaetter_deutsch/Konditionenempfehlungen0509.pdf
http://www.deutscheweine.de/icc/Internet-EN/nav/0f2/0f207d71-9ffe-401e-76cd-461d7937aae2&sel_uCon=02a235d6-994d-7017-288b-5952196117f5&uTem=0e3307d7-19ff-e401-e76c-d461d7937aae
CFI, 15.6.2005, Regione autonoma della Sardegna v Commission, T-171/02, ECR II-2123, paragraph 129.
ECJ, 2.7.2002, Commission v Spain (Magefesa), C 499/99, ECR I-6031.
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