Commission Decision of 30 September 2009 on aid scheme No C2/09 (ex N 221/08 and N 413/08) which Germany intends to grant to modernise the general conditions for capital investments (notified under document C(2009) 7387) (Text with EEA relevance)

The State aid schemes which Germany is planning to implement under Article 1 Section 19 and Article 4 of the Bill to Modernise the General Conditions for Capital Investments (MoRaKG) are incompatible with the common market. These State aid schemes may therefore not be implemented.

The State aid scheme which Germany is planning to implement under Article 1 Section 20 of the MoRaKG is compatible with the common market, subject to the conditions set out in Article 3.

The State aid scheme under Article 1 Section 20 of the MoRaKG shall be adjusted so that the following conditions are met: the definition of target enterprises shall be limited to small and medium-sized enterprises (SMEs) as defined in Annex I to the General block exemption Regulation , the definition of target enterprises shall exclude companies in difficulties and companies from the shipbuilding, coal and steel industry, maximum investment tranches shall not exceed EUR 1,5 million per target SME over each period of twelve months and shall be restricted to seed, start-up and expansion financing, Germany shall develop a mechanism to ensure that the measure complies with the cumulation and reporting rules set out in Chapter 6 and point 7.1 of the RC Guidelines, the purchase of existing shares (replacement capital) in a target SME shall be excluded, there shall be no special requirements with regard to the legal form of the target enterprise.

Germany shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

This Decision is addressed to Federal Republic of Germany.