1. Introduction to the workshops CASE STUDIES

2. Workshops (after lunch)
3 working groups
Distribution of participants according to the registrations !
Room
1st round 13:30-14:30
2nd round 14:30-15:30
Exploration
Incentive effect
Ballroom
Definition of SMEs
Harmony
Notification requirements for closed activities and relocations

3. Workshops 3 case studies 3 working group (tables)
Chair (DG COMP) and rapporteur (DG REGIO, DG GROW)
Rotation after 60 minutes, i.e. each participant can discuss 2 different case studies
Discussion around 3 principal questions
Reporting back to the plenary after 2 rounds

4. Workshops A. Incentive Effect B. Definition of SMEs
3 case studies
A. Incentive Effect
B. Definition of SMEs
C. Notification requirements for closed activities and relocations

5. A. Incentive effect
1.7.16
MS puts into effect pluri-sectoral regional aid scheme for a-areas (25%); provisions of Art. 1 and 14 GBER 2014 are met
1.8.16
Medium-sized firm M applies in writing for an EUR 7 m grant for an EUR 20 m greenfield investment in A-city for the production of car seats (present values); no cumulation.
Summary information sheet on scheme sent to COM
1.9.16
Start of works
Publication of summary information on MS central website
1.2.17
Aid granting contract signed; EUR 3 million paid out; no SIP issue, no closure elsewhere
Publication of full text of the aid measure on MS website
1.3.17
Competitor requires national court to order recovery, as scheme and aid to M are unlawful due to delays in submission/publication of summary information
1.7.17
Court requests COM Opinion on respect of standstill clause
Competitor submits complaint to COM, as aid is unlawful and reinforces overcapacities in declining market.
1.9.17
Publication of information on the individual case on the MS' central website
Company documents initially not submitted to MS show expected IRR in A-City of 11%, in B-City (25%) in same MS of 9%. No other location. Company hurdle rate: 10%; aid increases IRR by 1.5%

6. Principal questions for the working group A:
What do you reply to national court on respect of standstill clause?
Is the standstill clause of Art. 108(3) TFEU respected as the aid scheme is exempted?
Is the standstill clause of Art. 108(3) TFEU respected as the aid to M is exempted?  
What is your assessment of the compatibility of the scheme and of the individual case of application of the scheme in favour of M, in the light of the applicable incentive effect rules?
Which are the applicable rules for the assessment?
Are they respected? 

7. Principal questions for the working group A:
3. What would have been your assessment if the aid had been granted as ad hoc aid, AND the summary information sheet had been submitted and published on on the MS' central website, and the information on the individual aid on
Is the standstill clause respected in this constellation?
If not , which rules would apply for assessment.
Are they respected?

8. B. Definition of SMEs COMPANY ELLIOT A (applied for aid in 2010)
COMPANY ELLIOT P
Owned by Mr. and Mrs. G
Owned by X.G and Y. G., sons of Mrs. and Mr. G.
Owns and operates quarries
Manufactures bricks, gravel, pavement (market is downstream to quarries)

9. 90% of all Elliot A's production is sold to Elliot P
Mrs. and Mr. G. transferred Elliot P to sons in 2009; possibly joint business development up to 2009
Mr. G. is honorary president of Elliot P without actual management function
90% of all Elliot A's production is sold to Elliot P
Joint resource utilisation: headquarters in the same location; 25% of the space is used by Elliot P; shared secretarial office, meeting rooms, shared utilities and parts suppliers for equipment
Each enterprise satisfies on its own the SME definition criteria
Undertakings are not partner enterprises within the meaning of Article 3 (2) and are not linked within the meaning Article 3(3), including indent 4 of Article 3 (3).

10. Principal questions for the working group B:
Are these enterprises linked enterprises?
What is your feeling?
Are they linked on the basis of Commission decisional practice and ECJ jurisprudence according to which enterprises can be considered to be linked even if none of the factors for "linked enterprises" is literally satisfied?

11. C. Notification requirements for closed activities and relocations
An SME plans to set up a new establishment of 60 people in a 'c'-region in MS X (max regional aid intensity of 10%). The facility will produce household video cameras. Construction works will start on 01/11/2016 and take until 30/09/2017. The plant will be fully operational 01/01/2018. On 01/09/2016 the SME has applied for a grant of 6M EUR. The total eligible investment is 40M EUR.
The SME produces at 2 other locations in Europe in MS Y: it has a plant of 40 people producing video cameras and another plant of 40 people is producing television screens. Capacity of the latter plant was reduced in 2015 from 90 people to 40 people.
Without the aid, the SME would set up its new plant in a non-assisted area.

12. An SME plans to set up a new establishment of 60 people in a 'c'-region in MS X (max regional aid intensity of 10%). The facility will produce household video cameras. Construction works will start on 01/11/2016 and take until 30/09/2017. The plant will be fully operational 01/01/2018. On 01/09/2016 the SME has applied for a grant of 6M EUR. The total eligible investment is 40M EUR.
The SME produces at 2 other locations in Europe in MS Y: it has a plant of 40 people producing video cameras and another plant of 40 people is producing television screens. Capacity of the latter plant was reduced in 2015 from 90 people to 40 people.
Without the aid, the SME would set up its new plant in a non-assisted area.

13. Principal questions for the working group C:
Could this state aid be granted under the GBER? If yes, under which section?
On what basis would you determine whether the aid measure is notifiable?
When would the beneficiary have to give back the ESI Funds support received for that project, due to relocation or cessation of a productive activity?
Other related questions/issues?