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

— Please describe the risk and reward sharing between the public and private investors or lenders: … Where the public investor/lender assumes a first loss position exceeding the cap set out in Regulation (EU) No 651/2014 (i.e. 25%), it needs to be justified by reference to a severe market failure identified in the ex ante assessment (paragraph 116 of RFG). Please provide a summary of such justification: …

— If there are other risk-mitigation mechanisms for the benefit of the private investors/lenders, please explain: …

4.What is the pass-on mechanism (as required by paragraph 106 of RFG) ensuring that the financial intermediary passes on the advantage it receives from the State to the final beneficiary undertakings? What requirements does the financial intermediary have to apply (e.g. in terms of interest rate, collateral, risk class) to the final beneficiaries (please provide very precise details)? Please also provide details as to what extent the portfolio to be built under the measure goes beyond the financial intermediary's standard credit risk policy.

5.Please describe how the instrument is designed to ensure alignment of interests between the financial intermediary's investment strategy and the public policy objectives:

6.Please explain in detail the duration of the instrument or of the exit strategy underpinning the investment in debt instruments, and how the exit is strategically planned by the public investor:

7.Other relevant information:

□ UNFUNDED DEBT INSTRUMENTS: GUARANTEES BY THE STATE AT THE LEVEL OF FINANCIAL INTERMEDIARIES ON UNDERLYING TRANSACTIONS WITH FINAL BENEFICIARIES

1.Please provide reference to the relevant provision of the legal basis that requires that eligible transactions covered by the guarantee must be newly originated eligible risk finance loan transactions, including lease instruments, as well as quasi-equity investment instruments, to the exclusion of equity instruments (paragraph 118 of RFG): …

2.Do the guarantees to financial intermediaries cover a portfolio of underlying transactions and not a single underlying transaction?

□Yes. □No.

3.Type of guarantee:

□ Capped: guarantee cap is …% (Please note that this cap applies to portfolios held by financial intermediaries and it is recommended that the cap rate does not exceed 35% (paragraph 120 of RFG); Please provide reasons for that rate: … Moreover, tick to specify whether:
(a) □The cap rate only covers expected losses; or
(b) □The cap rate covers also unexpected losses; In this case, please show how the pricing of the guarantee reflects this additional risk coverage: …

□ Uncapped; in that case, please justify the need and how the pricing of the guarantee reflects this additional risk coverage by the guarantee: …
□ Counter-guarantee (guarantee to guarantee institutions)
□ Other: please specify: …

4.Guarantee rate (percentage of loss coverage by the public investor of every underlying transaction (See definition in paragraph 35(18) of RFG and please note that the guarantee rate must not exceed 90% (paragraph 119 of RFG)): …%;

Please give the reason for this level of coverage:

5.Underlying transactions covered by the guarantee:

— Nature of the underlying transactions: …

— Total nominal size of the underlying transactions (in EUR): …

— Maximum nominal amount of the underlying transaction per final beneficiary: …

— Duration of the underlying transactions: …

— Other relevant characteristics of the underlying transactions (risk rating, other): …

6.Please describe the other features of the guarantee (please include also a comparison with the market terms for such guarantee):

— Maximum duration of the guarantee: … (Please note that this should normally not exceed 10 years (paragraph 121 of RFG))

— Please provide reference to the relevant provision in the legal basis that stipulates that the guarantee must be reduced if the financial intermediary does not include a minimum amount of investment in the portfolio during a specific period, and that commitment fees are required for unused amounts: …

— Is a guarantee fee envisaged? □Yes. □No. Please specify which party will have to pay the guarantee fee: … Please describe in detail the pricing: …

— Other: …

7.What is the pass-on mechanism (as required by paragraph 106 of RFG) ensuring that the financial intermediary passes on the advantage it receives from the State to the final beneficiary undertakings? What requirements does the financial intermediary have to apply (e.g. in terms of interest rate, collateral, risk class) to the final beneficiaries? Please provide very precise details. Please also detail to what extent the portfolio to be built under the measure goes beyond the financial intermediary’s standard credit risk policy.

8.Please describe how the instrument is designed to ensure alignment of interests between the financial intermediary’s investment strategy and the public policy objectives:

9.Please provide a detailed explanation of the duration of the instrument or of the exit strategy underpinning the investment in debt instruments, and how the exit is strategically planned by the public investor:

10.Other relevant information:

□ OTHER FINANCIAL INSTRUMENTS (PLEASE DESCRIBE): …

B. INTERVENTION BY FINANCIAL INTERMEDIARIES IN FURTHER LEVELS OF FINANCIAL INTERMEDIARIES

There may be situations (including fund of funds structures), whereby, for instance, the State provides equity, loans or guarantees to a financial intermediary, which, in turn, provides equity, loans or guarantees to a further financial intermediary, which eventually provides risk finance investments to final beneficiaries. In such cases where there is a second, or further levels of financial intermediaries involved in the scheme, please provide all relevant information required in section 2.9.1.1.A) on Equity / Loans / Guarantees / Other financial instruments, as applicable, for each additional level of financial intermediary:

2.9.1.2.Risk finance investment by financial intermediaries in final beneficiaries

The risk finance investment in the final beneficiaries takes the following form (Please tick and complete as applicable):

□ EQUITY (INCL. QUASI-EQUITY) INVESTMENT BY THE FINANCIAL INTERMEDIARIES IN FINAL BENEFICIARIES
(a) In case of quasi-equity, please describe in detail the nature of the envisaged instrument: …
(b) Please provide the terms of the equity investment in detail (please include also a comparison with the market terms for that equity investment): …
(c) Please describe all features of the investments to be made by the financial intermediary in detail, including the requirements that the investment strategy of the eligible financial intermediaries should comply with: …
(d) Please provide a detailed explanation of the duration of the instrument or of the exit strategy underpinning the investment in equity: …
(e) If private participation takes place at this level (e.g. private investors also provide equity to the final beneficiaries):
— Please indicate the private participation ratio: …
— Please indicate the type of preferential treatment envisaged for the benefit of participating private investors, as described in the call for expression of interest (please give details): … □ Upside incentives: … □ Downside protection: …
— If non-pari passu loss-sharing features go beyond the limits set out in Article 21, paragraph 10, of Regulation (EU) No 651/2014, please provide economic evidence and justification, with reference to the ex ante assessment (paragraph 113 of RFG): …
— If relevant, please indicate whether the first loss piece borne by the public investor is capped (paragraph 113 of RFG): □ Yes. Please specify how the cap has been fixed: … □ No. Please explain: …

□ FUNDED DEBT INSTRUMENTS: LOANS BY FINANCIAL INTERMEDIARIES TO FINAL BENEFICIARIES
— Type of loans: please provide details: …
— Terms of the loans under the measure (please include also a comparison with the market terms for such loans): …
— Maximum size of the loan per beneficiary: …
— Maximum duration of the loans: …
— Please provide a detailed explanation of the duration of the instrument or of the exit strategy underpinning the investment in debt instruments: …
— Risk rating of the final beneficiaries: …
— Collateral or other requirements: …
— Other relevant information: …
— If private participation takes place at this level (e.g. private investors also provide loans to the final beneficiaries): Please indicate the private participation ratio: … Please describe the risk and reward sharing between the public and the private investors: … In particular, if the public investor assumes the first loss, at what level is it capped? Capped at …%. (Please note that it is recommendable that such cap does not exceed 35% (paragraph 116 of RFG)) Where the public investor or lender assumes a first loss position exceeding the cap set out in Regulation (EU) No 651/2014 (i.e. 25 %), please justify this by reference to measures targeting exclusively start-ups and SMEs before their first commercial sale or at the proof-of-concept stage, by reference to a severe market failure identified in the ex ante assessment or other relevant obstacle (paragraph 116 of RFG) and please provide a summary for such justification: … If there are other risk-mitigation mechanisms for the benefit of the private investors/lenders, please explain: …

□ Unfunded debt instruments: guarantees by financial intermediaries to final beneficiaries:
1. Please provide the nature and terms of the guarantees in detail (please include also a comparison with the market terms for such guarantees): …
1. Please provide reference to the relevant provision of the legal basis that requires that eligible transactions covered by the guarantee must be newly originated eligible risk finance loan transactions, including lease instruments, as well as quasi-equity investment instruments, to the exclusion of equity instruments (paragraph 118 of RFG): …
1. Please provide the nature and terms of the underlying transactions: …

□ Other financial instruments
— Describe the financial instrument to be implemented with the measure: …
— Provide a detailed description of all elements contained in section 2.9.1.2 above in so far as they are applicable to the chosen financial instrument: …

2.9.2. Fiscal instruments:

Please complete this entire section for each tax incentive. If the measure provides for multiple forms of tax incentive, please fill in the set of questions for each form of aid.

— Tax incentive granted for: (a) □Direct investments into undertakings (b) □Indirect investments into undertakings (that is to say via financial intermediaries) (c) □Indirect investments into undertakings made through an alternative trading platform

— Tax incentive granted to: (a) □corporate investors (b) □investors who are natural persons, for investments falling outside the scope of Regulation (EU) No 651/2014: …

— Form of tax incentive: (a) □income tax relief applicable on the taxable base (b) □income tax break applicable on the tax liability payable (c) □capital gains tax relief (d) □dividend tax relief (e) □other: …

— Please describe in detail the conditions that the investment must fulfil in order to be able to benefit from the fiscal incentive: …

— Please describe in detail the calculation of the tax incentive including: (i) maximum percentage of the invested amount that the investor can claim for the purposes of the tax relief, (ii) maximum tax break amount which can be deducted from the investor's tax liabilities, and (iii) maximum amount per each beneficiary: …

— With reference to the ex ante assessment, please provide economic evidence and justification for the category of eligible undertakings (paragraph 123 of RFG): …

— Please provide evidence that the selection of the eligible undertakings is based on a well-structured set of investment requirements, made public through appropriate publicity, and setting out the characteristics of the eligible undertakings which are subject to a market failure or another relevant obstacle (paragraph 125 of RFG): …

— Maximum duration of the tax incentive foreseen: …

Please note that fiscal schemes should have a maximum duration of 10 years (paragraph 126 of RFG).

(a) Is this tax incentive the prolongation of an existing measure?
□ Yes. Please provide the case number of the existing measure: …
□ No.

(b) Does the total duration of the fiscal scheme (including its predecessor schemes, if any) exceed 10 years? □Yes □No If yes, please specify whether:
— a new ex ante assessment has been carried out: □Yes □No
— the existing measure has been subject to an ex post evaluation: □Yes □No

(c) Please explain the specific characteristics of the national fiscal system that are relevant for a full understanding of the tax incentive: …

(d) Please describe any related / similar / relevant fiscal incentives that already exist in the Member State as well as the interplay between them and the notified tax incentive: …

(e) Is the tax incentive open to all investors fulfilling the applicable criteria, without discrimination as to their place of establishment (paragraph 128 of RFG)? □Yes □No

Please provide proof of the adequate publicity regarding the scope and the technical parameters (incl. ceilings and caps, maximum investment amount) of measure (paragraph 128 of RFG):

(f) Does the total investment for each beneficiary undertaking exceed the maximum amount of EUR 16.5 million per eligible undertaking fixed in Article 21 of Regulation (EU) No 651/2014 (paragraph 151 of RFG)? □Yes □No

(g) If this amount is higher, please justify this by reference to the market failure identified in the ex ante assessment: …

(h) Are eligible shares full-risk, ordinary shares, which are newly-issued by an eligible undertaking as defined in the ex ante assessment, and must they be held for at least three years (paragraph 152 of RFG)?
□ Yes.
□ No. Please provide details: …

(i) Is the relief available to investors who are independent from the company invested in (paragraph 152 of RFG)?
□ Yes.
□ No. Please provide details: …

(j) In the case of income tax relief, what is the maximum percentage of the amount invested in eligible undertakings to which the relief can amount? Please note that capping the tax relief at 30% of the invested amount is considered reasonable (paragraph 153 of RFG): …% Can the relief exceed the maximum income tax liability of the investor, as established prior to the fiscal measure?
□ Yes. Please provide details: …
□ No

2.9.3. Measures supporting alternative trading platforms:

— Existing platform: □ Yes. □ No, to be newly established

— Is there a business plan demonstrating that the aided platform can become self-sustainable in less than 10 years (paragraph 129 of RFG)? …

— Is or will the platform be a sub-platform or subsidiary of an existing stock exchange? □ Yes. Please identify: … □ No

— Are there already existing alternative trading platforms in the Member State (paragraph 131 of RFG)? □ Yes. Please identify: … □ No

— Is the platform set up by and operating across several Member States (paragraph 130 of RFG)? □ Yes. Please specify: … □ No

Type of undertakings traded on the platform:

— Which percentage of the investment costs incurred for the establishment of the platform is being supported? State aid can be granted in order to cover up to 50 % of the investment costs incurred for the establishment of such a platform (paragraph 156 of RFG). …

PLEASE PROVIDE, TOGETHER WITH THIS NOTIFICATION:

— Evidence that the majority of the financial instruments admitted to trading on the alternative trading platforms are or will be issued by SMEs.

— A copy of the business plan of the platform operator demonstrating that the platform can become self-sustainable in less than 10 years (paragraph 129 of RFG).

— Plausible counterfactual scenarios comparing the situations with which the tradable undertakings would be confronted in the absence of the platform in terms of access to the necessary finance (paragraph 129 of RFG).

— For existing platforms, a copy of the proposed business strategy of the platform that shows that, due to a persistent shortage of listings, and therefore a shortage of liquidity, the platform needs to be supported in the short-term, despite its long-term viability (paragraph 131 of RFG).

FORM OF THE MEASURE:

□ Fiscal incentives to corporate investors in respect of their risk finance investments made through an alternative trading platform in eligible undertakings: Please complete section 2.9.2 on Fiscal instruments above.
□ Support to platform operators:
— Platform operator is: □ A small enterprise. □ A larger than small enterprise.
— Maximum amount of the measure: … EUR.
— Is the maximum amount more than the start-up aid allowed under Regulation (EU) No 651/2014? □Yes □No
— Investment costs incurred for the establishment of the platform: … EUR
— Does the aid to the operator exceed 50% of those investment costs (paragraph 156 of RFG)? □Yes □No
— Aid is allowed up to how many years of start-up of the platform? …
— For platforms that are or will be a sub-platform or subsidiary of an existing stock exchange, please provide evidence for the lack of finance that such a sub-platform would face: …
— Other relevant information: …

3.FURTHER INFORMATION FOR THE COMPATIBILITY ASSESSMENT OF THE AID SCHEME

3.1. Need for State intervention (section 3.2.2 of RFG)

(a) A risk finance aid scheme can only be justified if it is targeted at addressing the specific market failure or other relevant obstacle in access to finance demonstrated in the ex ante assessment ([^E0515]).

(b) Please submit the in-depth ex ante assessment that proves the specific market failure or other relevant obstacle, together with this Supplementary Information Sheet (paragraphs 50 and 56 of RFG).

3.1.1. Information on the ex ante assessment (section 3.2.1 of RFG):

(a) Date of the ex ante assessment: …

(b) The assessment has been carried out by (paragraph 57 of RFG):
□ an independent entity …
□ an entity linked to the following public authority: …

(d) □Please tick to confirm that the ex ante assessment dates from less than 3 years preceding the notification (paragraph 57 of RFG):

(e) □The notified scheme is financed partially from the European Structural and Investment Funds and the assessment was prepared in accordance with Article 37(2) of Regulation (EU) No 1303/2013 ([^E0516]) or Article 58(3) of Regulation (EU) 2021/1060 ([^E0517]) (the Common Provisions Regulations) (paragraph 60 of RFG).

3.1.2. Ad facilitates the development of an economic activity (section 3.1 of RFG)

(a) Please identify the supported economic activity (paragraph 42 of RFG), including whether you consider it a high-risk or capital-intensive sector and why (paragraphs 75 and 77 of RFG): …

(b) Please describe the nature of the market failure or other relevant obstacle and demonstrate its presence (paragraph 61 of RFG) …

(c) Incentive effect: How does the notified scheme induce (i) the aid beneficiary and/or (ii) private investors, to change their behaviour by undertaking activities which they would not carry out without the aid or would carry out in a more restrictive manner (paragraphs 43 to 47 of RFG)? …

3.1.3. Identification of the specific objectives and performance indicators for the notified scheme based on the results of the ex ante assessment (paragraphs 164 and 165 of RFG):

(a) Please list the identified specific objectives and make reference to the relevant section in the ex ante assessment: …

(b) Please list the defined performance indicators (see examples in paragraph 164 of RFG) and make reference to the relevant section in the ex ante assessment: …

3.1.4. Economic evidence and justification in the ex ante assessment for the need for State intervention (section 3.2.2 of RFG): see sections 2.3, 2.4, and 2.5 of this form.

3.2. Appropriateness of the notified scheme (section 3.2.3 of RFG)

3.2.1. General:

(a) By reference to the ex ante assessment, please explain why the existing and envisaged national and Union policy actions (paragraph 58 of RFG) targeting the same identified market failures cannot adequately address the identified market failures (paragraphs 92 and 93 of RFG): …

(b) Please explain why the proposed State aid instrument has the most appropriate design to ensure an efficient funding structure (paragraphs 94 and 95 of RFG): …

3.2.2. Appropriateness conditions for financial instruments (section 3.2.3.2RFG):

1.Minimum private investment ratios (paragraphs 97 to 99 of RFG):

— What is the minimum aggregate (that is to say total, including all levels) independent private participation rate in the risk finance investment in the final beneficiary?: …% of the risk finance (public and private) provided to the final beneficiary.

— In case of independent private investors' participation below the ratios required in Article 21, paragraph 12, of Regulation (EU) No 651/2014, please summarize the economic evidence and provide detailed justification for this ratio (as per paragraph 97 of RFG), with reference to the ex ante assessment: …

— Is private participation in the notified scheme of a non-independent nature acceptable (paragraph 98 of RFG)? □ Yes. Please provide economic evidence and justification: … □ No.

— In the case of undertakings receiving the initial risk finance investment while they have been operating in any market for longer than the eligibility period fixed in Article 21, paragraph 3, letter b, of Regulation (EU) No 651/2014 at the time of the first risk finance investment (paragraph 99 of RFG) e, what adequate restrictions does the notified scheme contain? …

— Does the private participation ratio amount to minimum 60% (paragraph 99 of RFG)? □Yes □No

2.Balance of risks and rewards between public and private investors (paragraphs 100 to 102 of RFG):

— Please explain why the allocation of risks and rewards between public and private investors as described above in the sections on the relevant financial instruments can be considered as balanced (paragraphs 100 to 102 of RFG): …

3.Nature of incentives to be determined via selection of financial intermediaries, as well as fund managers or investors (paragraphs 103 and 104 of RFG)

Please confirm by ticking as appropriate:

A. SELECTION OF FINANCIAL INTERMEDIARIES IMPLEMENTING THE SCHEME:
(a) Each of the financial intermediaries is selected via an open, transparent and non-discriminatory process, through which the exact nature of incentives is determined.
□ Yes.
□ No. Please state the reason (explaining the selection of investors): …
— Please describe the competitive process and describe how the process of selection complies with the requirements, including (i) selection criteria listed in the call for interest, (ii) evaluation grid used for screening and (iii) due diligence process: …
— Please provide the reference to the relevant provision of the legal basis: …
— Please describe how compliance with the conditions of commercial management and profit-oriented decision-making set out in Regulation (EU) No 651/2014 (Article 21, paragraphs 15 and 16 of Regulation (EU) No 651/2014) is ensured (paragraph 172 of RFG): …
— Please provide evidence, and reference to the legal basis: …
(b) As part of this selection process, financial intermediaries must demonstrate how their proposed investment strategy contributes to the achievement of the policy objectives and targets (based on the performance indicators identified in the ex ante assessment). Please submit, together with this notification:
— The documents submitted by each financial intermediary detailing its investment strategy, including pricing policy and how it contributes to each of the policy objectives and targets
— Please provide a detailed description of the mechanism foreseen in the notified scheme, by which the Member State will ensure that the investment strategy of the intermediaries remains at all times aligned with the agreed policy targets (e.g. via monitoring, reporting, participation in the representation bodies), and that material changes to the investment strategy require the prior consent of the Member State: …
— Please also provide the reference to the relevant provision of the legal basis: …
(c) The manager of the financial intermediary or the management company ('the manager') is chosen through an open, transparent, non-discriminatory and objective selection procedure or the manager's remuneration fully reflects market levels.
□ Yes
□ No. Please state the reason (including an explanation on the selection of investors): …
— Please describe the competitive process and describe how the selection process complies with the requirements of this point: …
— Please provide the reference to the relevant provision of the legal basis containing those requirements: …
(d) □The managers of the fund of funds are required to legally commit as part of their investment mandate to determine via a competitive process the preferential conditions which could apply at the level of the sub-funds (paragraph 103 of RFG).

B. SELECTION OF PRIVATE INVESTORS
□ The private investors are selected via an open, transparent and non-discriminatory process through which the exact nature of incentives is determined (paragraph 103 of RFG).
— Please describe the modalities for identification and selection of private investors: …

4.Co-investing financial intermediary or fund manager taking at least 10% of first loss piece (paragraph 105 of RFG)

— Where the financial intermediary or fund manager co-invest alongside the Member State, any potential conflict of interest should be avoided and they must take at least 10% of the first loss piece (paragraph 105 of RFG). Please confirm that this is the case (if applicable): …

5.Pass-on mechanism in the case of debt instruments (loans or guarantees) (paragraph 106 of RFG):

(a) □The notified scheme provides for a pass-on mechanism (as described in section 2.9.1.1.A.) ensuring that the financial intermediary passes on the advantage it receives from the State to the final beneficiary undertakings. Please indicate the relevant provisions in the legal basis: …

(b) □The pass-on mechanism includes monitoring arrangements, as well as a claw-back mechanism or an equivalent contractual mechanism. Please describe and indicate the relevant provisions in the legal basis: …

3.2.3. Appropriateness conditions for fiscal instruments (section 3.2.3.3 of RFG):

For the purposes of these requirements, the information you have provided under section 2.9.2 will be considered.

— Please indicate any further information you consider relevant with regard to the appropriateness conditions: …

3.2.4. Appropriateness conditions for measures supporting alternative trading platforms (section 3.2.3.4 of RFG):

For the purposes of these requirements, the information you have provided under section 2.9.3 will be considered.

— Please indicate any further information you consider relevant with regard to the appropriateness conditions: …

3.3. Proportionality of the aid (section 3.2.4 of RFG)

3.3.1. Proportionality in relation to the identified market failure:

— For risk finance measures that concern financial instruments with independent private investor participation below the ratios provided for in Article 21, paragraph 12, of Regulation (EU) No 651/2014: □ Please tick to confirm and provide a summary of the assessment demonstrating that the ex ante assessment provides a sufficiently detailed assessment of the level and structure of supply of private funding for the type of eligible undertaking in the relevant geographic area and demonstrate that the identified market failure or other relevant obstacle cannot be addressed with measures which fulfil all the requirements set out in Regulation (EU) No 651/2014 concerning private participation (paragraph 63 of RFG): Summary: …

— For risk finance investments of an amount exceeding the maximum amount per eligible undertaking of EUR 16.5 million fixed in Article 21(8) of Regulation (EU) No 651/2014: Is this cap set out in Article 21(8) of Regulation (EU) No 651/2014 complied with? □ Yes. Please specify: … □ No. Please specify: … If applicable, does the ex ante assessment quantify the funding gap (that is to say, the level of currently unmet demand for finance from eligible undertakings) due to the identified market failure or other relevant obstacle? □ Yes. Please summarize the assessment and calculation applied demonstrating that the funding gap at the level of the eligible undertakings exceeds the above-mentioned maximum amount. Such quantification should be based on available best practices and methodologies allowing for the estimation of the extent to which there is an unmet demand for finance, from the targeted undertakings (paragraphs 64 and 65 of RFG): … □ No If applicable, how is it ensured that the total amount of risk finance does not exceed the funding gap quantified? Please explain: … — Please describe how the total amount of risk finance (public and private) provided under the aid measure is proportionate (paragraphs 133 and134 of RFG): … — Please explain, by reference to the ex ante assessment, how the preferential treatment of private investors is limited to the minimum necessary to achieve the minimum ratios of private capital participation required by the scheme (paragraphs 135 and 136 of RFG): …

3.3.2. Proportionality conditions for financial instruments (section 3.2.4.1 of RFG):

1.In relation to the financial intermediaries / fund managers:

— Is the exact value of incentives determined in the selection process of the financial intermediaries or fund managers (paragraph 137 of RFG)? □Yes □No

— Please provide the following information on the remuneration of the financial intermediaries or fund managers (paragraph 145 of RFG):

— Does it include an annual management fee in accordance with the RFG (paragraph 145 of RFG)? □ Yes □ No. Please provide details: …

— Does it include performance-based incentives, including financial performance incentives and policy-related incentives, in accordance with the RFG (paragraph 146 of RFG)? □ Yes □ No. Please provide details: …

— Please specify what penalties are provided for in case the policy targets are not met: …

— Please specify the performance-based remuneration and provide a comparison with market practice (paragraph 147 of RFG): …

— Please specify the total management fees and provide a comparison with market practice (paragraph 148 of RFG): …

— Is the overall fee structure evaluated as part of the scoring of the selection process and the maximum remuneration established as a result of that selection (paragraph 149 of RFG)? □ Yes □ No. Please explain why: …

If the financial intermediary and its manager are public entities and were not selected through an open, transparent, non-discriminatory and objective selection procedure, please tick to confirm and provide evidence of the following:

(a) □Explain why you consider it was necessary to directly appoint an entrusted entity as financial intermediary or fund manager: …

(b) □The public financial intermediaries are managed commercially and their managers take investment decisions in a profit-oriented manner at arm's length from the State. Please explain in particular the mechanisms established to exclude any possible interference by the State in the day-to-day management of the public fund: …

(c) In the case of direct appointment of an entrusted entity, what is its annual management fee, excluding performance-based incentives?: …% of the capital to be contributed to the entity. Please note that it should not exceed 3% (paragraph 150 of RFG).

2.In relation to the private investors:

— In the case of co-investment by a public fund with private investors participating on a deal by deal basis, are the private investors selected through a separate competitive process in respect of each transaction, so as to establish the fair rate of return (paragraph 139 of RFG)? □ Yes. Please provide supporting evidence. □ No.

— Where private investors are not selected through such a process, is the fair rate of return established by an independent expert on the basis of an analysis of market benchmarks and market risk using the discounted cash flow valuation methodology, and detailing the calculation of a minimum level of fair rate of return and an appropriate margin to reflect the risks (paragraph 140 of RFG), and are all conditions of paragraph 141 of RFG fulfilled? □ Yes. Please provide the report in which the evaluation is contained, identify the expert, describe the existing rules for its appointment, and provide the relevant evidence: … □ No. □ Please tick to confirm that the same independent expert cannot be used twice within the same 3-year period

— Please explain how the risk adjusted returns for the private investors are limited to the fair rate of return (paragraph 142 of RFG): …

— Please explain, on the basis of the ex ante assessment, the economic justification for the specific financial parameters underpinning the measure: …

3.3.3. Proportionality conditions for fiscal instruments (section 3.2.4.2 of RFG):

For the purposes of these requirements, the information provided under section 2.9.2 will be considered.

— Please indicate any further information you consider relevant with regard to the proportionality conditions: …

3.3.4. Proportionality conditions for alternative trading platforms (section 3.2.4.3 of RFG):

For the purposes of these requirements, the information provided under section 2.9.3 will be considered.

— Please indicate any further information you consider relevant with regard to the proportionality conditions: …

3.4. Avoidance of undue negative effects on competition and trade (section 3.2.5 of RFG)

— Please provide, as part of the ex ante assessment, information on the potential negative effects of the notified scheme. It should include the potential negative effects at all three levels, that is to say in the market for the provision of risk finance (e.g. the risk of crowding out of private investors), at the level of financial intermediaries and their managers, and at the level of final beneficiaries (including in the markets in which the beneficiaries are active): …

— Does the notified scheme ensure that the only undertakings targeted with risk finance State aid are those that are potentially viable (paragraph 171 of RFG)? □ Yes. Please describe how this is ensured and indicate the relevant provisions in the legal basis: … □ No

— Is the notified scheme geographically or regionally limited (paragraph 173 of RFG)? □ Yes. Please specify: … □ No.

— Is the notified scheme limited in the legal basis (de iure) to specific sectors (paragraph 174 of RFG)? □ Yes. Please specify: … □ No.

— Is the notified scheme in practice targeted at certain sectors? □ Yes. Please specify: … □ No

— How are the negative effects minimised as much as possible? …

3.5. Transparency (section 3.2.6 of RFG)

Please confirm that the Member State will comply with the requirements on transparency provided in section 3.2.6 of the RFG and the annex.

□ Yes

4.CUMULATION OF THE AID

Risk finance aid may be cumulated with other State aid measures without identifiable eligible costs, or with de minimis aid, up to the highest relevant total financing ceiling fixed in the specific circumstances of each case by a block exemption regulation or a decision adopted by the Commission (paragraph 159 of RFG).

□ Please tick to confirm compliance with this rule.

— Please provide reference to the legal basis: …

— Please explain in what way is conformity with the cumulation rules achieved: …

5.OTHER INFORMATION

Please indicate here any other information you consider relevant to the assessment of the measure(s) concerned under the RFG:

PART III.8

SUPPLEMENTARY INFORMATION SHEET FOR THE NOTIFICATION OF AN EVALUATION PLAN

Member States shall use this sheet for the notification of an evaluation plan pursuant to Article 1(2), point (a) of Commission Regulation (EU) No 651/2014) ([^E0518]) , Article 1(3), point (a), of Commission Regulation (EU) 2022/2472 ([^E0519]) or Article 1(7), point (a) of Commission Regulation (EU) 2022/2473 ([^E0520]) and in the case of a notified aid scheme subject to an evaluation as provided in the relevant Commission guidelines.

Please refer to the Commission Staff Working Document "Common methodology for State aid evaluation" ([^E0521]) for guidance on the drafting of an evaluation plan.

1.IDENTIFICATION OF THE AID SCHEME TO BE EVALUATED

1.Title of the aid scheme:

2.Does the evaluation plan concern:

(a) □a scheme subject to evaluation pursuant to Article 1(2), point (a), of Regulation (EU) No 651/2014 ?

(b) □a scheme subject to evaluation pursuant to Article 1(3), point (a), of Regulation (EU) 2022/2472?

(d) □a scheme notified to the Commission pursuant to Article 108(3) of the Treaty? Please indicate the SA number of the scheme: …

3.Please indicate the SA number of all previous and ongoing State aid schemes with similar objective and geographical area. Please specify if any of these schemes is a predecessor of the current aid scheme.

Has any of the above listed State aid schemes been ex post evaluated?

□Yes □No

3.1.If yes, please provide a brief summary of the main results of the ex post evaluation(s) (where relevant, with a reference and a link).

3.2.Please describe how the results of these evaluations have been taken into account in the design of the new scheme.

4.Please list any existing ex-ante evaluations or impact assessments for the aid scheme. For each of those studies, please provide the following information: (a) a brief description of the study's objectives, methodologies used, results and conclusions, and (b) specific challenges that the evaluations and studies might have faced from a methodological point of view, for example data availability that are relevant for the assessment of the current evaluation plan. If appropriate, please identify relevant areas or topics not covered by previous evaluation plans that should be the subject of the current evaluation. Please provide the summaries of such evaluations and studies in annex and, when available, the internet links to the documents concerned:

2.OBJECTIVES OF THE AID SCHEME TO BE EVALUATED

1.Please provide a description of the aid scheme specifying the needs and problems the scheme intends to address and the intended categories of beneficiaries, for example size, sectors, location, indicative number:

2.Please indicate the objectives of the scheme and the expected impact, both at the level of the intended beneficiaries and as far as the objective of common interest is concerned:

3.Please indicate possible negative effects, on the aid beneficiaries or on the wider economy, that might be directly or indirectly associated with the aid scheme ([^E0522]):

4.Please indicate (a) the annual budget planned under the scheme, (b) the intended duration of the scheme ([^E0523]), (c) the aid instrument or instruments and (d) the eligible costs:

5.Please provide a summary of the eligibility criteria and the methods for selecting the aid beneficiaries. In particular, please describe the following: (a) the methods used for selecting beneficiaries (e.g. such as scoring), (b) the indicative budget available for each group of beneficiaries, (c) the likelihood of the budget being exhausted for certain groups of beneficiaries, (d) the scoring rules, if they are used in the scheme, (e) the aid intensity thresholds and (f) the criteria the authority granting the aid will take into account when assessing applications:

6.Please mention specific constraints or risks that might affect the implementation of the scheme, its expected impacts and the achievement of its objectives:

3.EVALUATION QUESTIONS

1.Please indicate the specific questions that the evaluation should address by providing quantitative evidence of the impact of aid. Please distinguish between (a) questions related to the direct impact of the aid on the beneficiaries, (b) questions related to the indirect impacts and (c) questions related to the proportionality and appropriateness of the aid. Please explain how the evaluation questions relate to the objectives of the scheme:

4.RESULT INDICATORS

1.Please use the following table to describe which indicators will be built to measure outcomes of the scheme, as well as the relevant control variables, including the sources of data, and how each result indicator corresponds to the evaluation questions. In particular, please mention (a) the relevant evaluation question, (b) the indicator, (c) the source of data, (d) the frequency of collection of data (for example, annual, monthly, etc.), (e) the level at which the data is collected (for example, firm level, establishment level, regional level, etc.), (f) the population covered in the data source (for example, aid beneficiaries, non-beneficiaries, all firms, etc.):

Evaluation question	Indicator	Source	Frequency	Level	Population

Please explain why the chosen indicators are the most relevant for measuring the expected impact of the scheme:

5.ENVISAGED METHODS TO CONDUCT THE EVALUATION

1.In light of the evaluation questions, please describe the envisaged methods to be used in the evaluation to identify the causal impact of the aid on the beneficiaries and to assess other indirect impacts. In particular, please explain the reasons for choosing those methods and for rejecting other methods (for example, reasons related to the design of the scheme) ([^E0524]):

2.Please describe precisely the identification strategy for the evaluation of the causal impact of the aid and the assumptions on which the strategy relies. Please describe in detail the composition and the significance of the control group:

3.Please explain how the envisaged methods address potential selection bias. Can it be claimed with sufficient certainty that observed differences in the outcomes for the aid beneficiaries are due to the aid?

4.If relevant, please explain how the envisaged methods intend to address specific challenges related to complex schemes, for example schemes that are implemented in a differentiated manner at regional level and schemes that use several aid instruments:

6.DATA COLLECTION

1.Please provide information on the mechanisms and sources for collecting and processing data about the aid beneficiaries and about the envisaged counterfactual. ([^E0525]) Please provide a description of all the relevant information that relates to the selection phase: data collected on aid applicants, data submitted by applicants and selection outcomes. Please also explain any potential issue as regards data availability:

2.Please provide information on the frequency of the data collection relevant for the evaluation. Are observations available on a sufficiently disaggregated level, that is to say at the level of individual undertakings?

3.Please indicate whether the access to the necessary data for conducting the evaluation might be hindered by laws and regulations governing confidentiality of data and how those issues would be addressed. Please mention other possible challenges related to data collection and how they would be overcome:

4.Please indicate whether surveys of aid beneficiaries or of other undertakings are foreseen and whether complementary sources of information are intended to be used:

7.PROPOSED TIMELINE OF THE EVALUATION

1.Please indicate the proposed timeline of the evaluation, including milestones for data collection, interim reports and involvement of stakeholders. If relevant, please provide an annex detailing the proposed timeline:

2.Please indicate the date by which the final evaluation report will be submitted to the Commission:

3.Please mention factors that might affect the envisaged timeline:

8.THE BODY CONDUCTING THE EVALUATION

1.Please provide specific information on the body conducting the evaluation or, if not yet selected, on the timeline, procedure and criteria for its selection:

2.Please provide information on the independence of the body conducting the evaluation and on how possible conflict of interest will be excluded during the selection process:

3.Please indicate the relevant experience and skills of the body conducting the evaluation or how those skills will be ensured during the selection process:

4.Please indicate which arrangements the granting authority will make to manage and monitor the conduct of the evaluation:

5.Please provide information, even if only of an indicative nature, on the necessary human and financial resources that will be made available for carrying out the evaluation:

9.PUBLICITY OF THE EVALUATION

1.Please provide information on the way the evaluation will be made public, that is to say, through the publication of the evaluation plan and the final evaluation report on a website:

2.Please indicate how the involvement of stakeholders will be ensured. Please indicate whether the organisation of public consultations or events related to the evaluation is envisaged:

3.Please specify how the evaluation results are intended to be used by the granting authority and other bodies, for example for the design of successors of the scheme or for similar schemes:

4.Please indicate whether and under which conditions data collected for the purpose or used for the evaluation will be made accessible for further studies and analysis:

5.Please indicate whether the evaluation plan contains confidential information that should not be disclosed by the Commission:

10.OTHER INFORMATION

1.Please indicate here any other information you consider relevant for the assessment of the evaluation plan:

2.Please list all documents attached to the notification and provide paper copies or direct internet links to the documents concerned:

PART III.12

GENERAL INFORMATION SHEET FOR THE GUIDELINES FOR STATE AID IN THE AGRICULTURE AND FORESTRY SECTORS AND IN RURAL AREAS

Please note that this general information sheet for the notification of State aid applies to all sectors covered by the European Union Guidelines for State aid in the agriculture and forestry sectors and in rural areas ([^E0526]) ('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.

1.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 AN ECONOMIC ACTIVITY

1.1.Contribution to the development of aided economic activity

To provide the information in this section, please refer to section 3.1.1 (points 42 – 45) 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 point (42) of the Guidelines, please provide information, which would allow the Commission to identify the economic activity(ies) that will be facilitated as a result of the aid and demonstrate how the aid facilitates the development of that activity(ies):

1.1.2.Please describe whether and, if so, how the aid contributes to the achievement of the objectives of the CAP and within that policy to the objectives of Regulation (EU) 2021/2115 of the European Parliament and of the Council ([^E0527]) and describe more specifically the expected benefits of the aid:

Please note that this information is necessary for the Commission in order to assess the compliance of the aid with point (44) of the Guidelines.

1.1.3.Is the aid granted in favour of risk and crisis management measures granted in compliance with Part II, Section 1.2. of the Guidelines?

□yes □no

If the answer is yes, please specify the risk and crisis management measure(s) concerned:

Please note that pursuant to point (45) of the Guidelines, the Commission considers that aid in favour of risk and crisis management measures granted in compliance with Part II, Section 1.2. of the 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.

1.1.4.Is the aid awarded for individually notifiable investment projects on the basis of a scheme?

□yes □no

If the answer is yes, please demonstrate that the selected project will contribute towards the objectives of the scheme and thus towards the objectives of aid in the agricultural and forestry sectors and in rural areas. For that purpose, please refer to question 2.6. of this Information Sheet, in which requires the information on the positive effects of the aid for investment.

1.2.Incentive effect

To provide the information in this section, please refer to section 3.1.2 (points 47 - 60) 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 47 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 (47) 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 sector:

□yes □no

Please note that pursuant to point (48) of the Guidelines, unless exceptions are expressly provided for in Union legislation or in the 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 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.Is the aid granted under Part II, Sections 1.2 and 2.8.5 of the Guidelines limited to helping undertakings active in the agricultural and forestry sectors facing various difficulties despite having undertaken reasonable efforts to minimise such risks?

□yes □no

Please note that pursuant to point (49) of the Guidelines, aid granted under Part II, Sections 1.2 and 2.8.5 should be limited to helping undertakings active in the agricultural and forestry 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 agricultural and forestry sectors should themselves bear the consequences of imprudent choices of production methods or products.

1.2.5.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 (50) of the Guidelines, the aid does not present an incentive for the beneficiary wherever work on the relevant project or activity has already started prior to the aid application by the beneficiary to the national authorities.

1.2.6.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

1.2.7.Will the aid be granted to large enterprises?

□yes □no

1.2.8.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 (52) 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.

1.2.9.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 (53) 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.

1.2.10.If the aid is granted in the form of tax advantages, are the following conditions complied with?

(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

(b) the aid scheme has been adopted and in force before work on the aided project or activity has started ([^E0528])? □yes □no

Please note that pursuant to point (54) of the Guidelines, aid in the form of tax advantages is deemed to have an incentive effect if the above two conditions are fulfilled. Pursuant to point (54) of the Guidelines, the requirement referred to in point (b) of this question does not apply in the case of fiscal successor schemes provided the activity was already covered by the previous schemes in the form of tax advantages.

1.2.11.Does the aid fall under one of the following aid categories of the Guidelines?

(a) □aid schemes for land consolidation in accordance with Part II, Section 1.3.6 and Section 2.9.2 of the Guidelines and aid schemes with ecological, protective and recreational objectives in accordance with Part II, Section 2.8 of the Guidelines and with the following conditions fulfilled:
(i) □the aid scheme establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State;
(ii) □the aid scheme has been adopted and is in force before eligible costs in accordance with Part II, Sections 1.3.6 and 2.9.2 and Section 2.8. of the Guidelines are incurred by the beneficiary; and
(iii) □the aid scheme only covers SMEs.

(b) □aid for area-specific disadvantages resulting from certain mandatory requirements in accordance with Part II, Section 1.1.6 of the Guidelines;

(c) □aid to areas facing natural or other area-specific constraints in accordance with Part II., Section 1.1.7 of the Guidelines;

(d) □aid for information actions in the agricultural sector in accordance with Part II, Section 1.1.10.1 of the Guidelines, which consists of making available the information to an undefined number of beneficiaries;

(e) □aid to make good the damage caused by natural disasters or exceptional occurrences in accordance with Part II, Section 1.2.1.1 of the Guidelines;

(f) □aid to compensate for the damage caused by adverse climatic events which can be assimilated to natural disaster in accordance with Part II, Section 1.2.1.2 of the Guidelines;

(g) □aid to compensate for the costs of the prevention, control and eradication of animal diseases, plant pests and infestation by invasive alien species and aid to make good the damage caused by animal diseases, plant pests and invasive alien species in accordance with Part II, Section 1.2.1.3 of the Guidelines;

(h) □aid to cover the costs of the removal and destruction of fallen stock in accordance with Part II, Section 1.2.1.4 of the Guidelines;

(i) □aid to compensate for the damage caused by protected animals in accordance with Part II, Section 1.2.1.5 of the Guidelines;

(j) □aid to make good the damage in forests caused by protected animals in accordance with Part II, Section 2.8.5 of the Guidelines;

(k) □aid for information actions in the forestry sector in accordance with Part II, Section 2.4 of the Guidelines, which consists of making available the information to an undefined number of beneficiaries;

(l) □aid for investments in favour of conservation of cultural and natural heritage on the agricultural holding in accordance with Part II, Section 1.1.1.2 of the Guidelines, with the exception of individual aid which exceeds EUR 500 000 per undertaking per investment project;

(m) □aid for promotion measures in accordance with point (468)(b), (c) and (d) of the Guidelines;

(n) □aid to compensate for additional transport costs in accordance with points (480) and (481) of the Guidelines;

(o) □aid for research and development in the agricultural and forestry sectors in accordance with Part II, Sections 1.3.7 and 2.9.1. of the Guidelines;

(p) □aid for the restoration of damage to forests from fires, natural disasters, adverse climatic events, plant pests, animal diseases, catastrophic events and climate change related events in accordance with Part II, Section 2.1.3 of the Guidelines;

(q) □aid for the costs of treatment and preventing the spreading of pests, tree diseases and invasive alien species and aid to make good the damage caused by the pests, tree diseases and invasive alien species in accordance with Part II, Section 2.8.1 of the Guidelines;

Please note that pursuant to point (55) of the Guidelines, the above categories of aid are not required to have or are deemed to have an incentive effect. Thus, if the aid is granted for one of the above categories, points (50) to (53) of the Guidelines do not apply.

Additional conditions for individually notifiable investment aid

If the aid is granted for individual investment, please continue with questions 1.2.12. to 1.2.16. below.

1.2.12.Please provide in the notification clear evidence that the aid effectively has an impact on the investment choice.

Please specify such impact:

Please note that pursuant to point (56) 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.

1.2.13.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 (59) of the Guidelines, where no specific counterfactual scenario is known, the incentive effect can be assumed when there is a funding gap, that is to say 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.

1.2.14.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 (57) 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.

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

Please note that pursuant to point (58) 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) ([^E0529]) of the project, the internal rate of return (IRR) ([^E0530]) 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.

1.2.16.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 (59) 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 and general principles of Union law

To provide the information in this section, please refer to section 3.1.3 (points 61 – 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 (61) 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.

In order to assess the compliance with point (61) of the Guidelines, please provide information demonstrating that the aid measure does not entail a violation of relevant Union law:

1.3.2.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 (26) 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.

1.3.3.Where the aid measure concerns agricultural products ([^E0531]), is the aid compatible with the provisions governing the common organisation of the markets in agricultural products?

□yes □no

Please note that in compliance with point (62) of the Guidelines, the Commission will not authorise State aid which is incompatible with the provisions governing the common organisation of the market or which would interfere with the proper functioning of the common organisation.

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 (63) 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 (63) of the Guidelines, the aid cannot be declared compatible with the internal market.

1.3.6.Is the aid granted for export-related activities to third countries or to Member States, directly linked to the quantities exported, or is the aid contingent upon the use of domestic over imported goods, or is the aid granted for establishing and operating a distribution network or to cover any other expenditure linked to export activities?

□yes □no

Please note that pursuant to point (64) 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.

2.SECOND CONDITION: THE AID CANNOT UNDULY 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 then 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.

2.1.Need for State intervention

To provide the information in this section, please refer to section 3.2.1. (points 70 - 71) of the Guidelines.

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