Data collection template and questionnaire

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  Different state aid instruments (see chapter on state aid) ⁶⁰⁸
  

Title of financial aid	Planned budget 2002 in mio €
Marketing of German hard coal	2.929
GA agricutltural structure (without coastal protection)	708
Social housing	675
Interest subsidies for housing modernisation in the framework of the ‚KfW’ for the Eastern Länder	614
Subsidies for the Eastern Länder for investments in industrial companies, GA of the development of the regional economic structure	595
Premium according to housing/house construction premium law	500
Subsidies for providers of agricultural accidents insurance	256
Interest subsidies to the ‚KfW’ for building modernisation / renovation to avoid CO2-emissions	205
Subsidies to take on agricultural employees	171
Indirect support of research and start ups	137
Adaptation support for employees in hard coal mining sector	121
Measures to support SME and freelancers as well as to strengthen vocational training	117
Subsidies to the Federal monopoly administration for spirits	108
Subsidies for the West Länder for investments in industrial companies, GA of the development of the regional economic structure	105
Research and development in the Eastern Länder	103
Interest subsidies and reimbursement of loss in loans in the framework of the own capital support programme for self-employment	101
Support of single measures fort he use of renewable energies	99
Support of the industrial common research and development	88
Pension for handing over land (‚Landabgaberente ‘)	87
Financial support for selling of civil air plains including power plants	78
Total	7.796
in % of financial aid of the federal level	94,9

Also the co-financing (by national, Länder and district funds) of European funds 2000-2006 (regional development programmes) falls within the area of public expenditure/public sector transfer, even though it cannot attributed directly to the national budget:⁶⁰⁹

		2000-2006 (mio €)
				ERDF		ESF		EAGGF
		Total	EU contribution	EU contribution	%	EU contribution	%	EU contribution	%
Objective 2	Baden-Württemberg	1160.366	97.769	97.769	100%	-	-	-	-
Objective 2	Bavaria	2200.882	536.638	475.804	88.66%	60.834	11.34%	-	-
Objective 2	Western part of Berlin	1179.189	384.449	244.125	63.50%	140.324	36.50%	-	-
Objetive 1	Eastern part of Berlin	2120.302	687.558	517.858	75.32%	162.663	23.66%	7.037	1.02%
Objetive 1	Brandenburg	6733.047	3090.223	1639.26	53.05%	730.66	23.64%	720.302	23.31%
Objective 2	Bremen	354.659	113.034	113.034	100%	-	-	-	-
Objective 2	Hamburg	12.384	6.192	6.192	100%	-	-	-	-
Objective 2	Hesse	542.379	183.519	183.519	100%	-	-	-	-
Objective 2	Lower Saxony	1492.457	733.953	682.254	92.96%	51.699	7.04%	-	-
Objetive 1	Mecklenburg-Western Pomerania	5493.088	2455.750	1100.19	44.80%	613.47	24.98%	742.09	30.22%
Objective 2	North Rhine-Westphalia	3598.623	970.361	823.62	84.88%	146.741	15.12%	-	-
Objective 2	Rhineland-Palatinate	1402.927	170.677	158.877	93.09%	11.8	6.91%	-	-
Objective 2	Saarland	981.785	171.089	130.841	76.48%	40.248	23.52%	-	-
Objetive 1	Saxony	11240.40	4858.610	3057.598	62.93%	1098.191	22.60%	702.821	14.47%
Objetive 1	Saxony-Anhalt	8697.414	3360.445	1908.342	56.89%	715.254	21.32%	730.849	21.79%
Objective 2	Schleswig-Holstein	831.107	258.319	221.747	85.84%	36.572	14.16%	-	-
Objetive 1	Thuringia	10018.45	2886.137	1480.29	51.29%	866.7	30.03%	539.147	18.68%

3 Territorial policies
General description⁶¹⁰

German territorial or regional policy (‘Regionalpolitik’) is part of the overall economic and spatial structural policy (‘Raumordnungspolitik’). The main tasks are to support the development of economically weak regions, the optimal development of all German regions, equalisation of the different technological standings, support optimal living and working conditions in Germany. Its main aims are state influence in the economic structure and development of the German territory, support of the regional economic power and optimal use of production resources, support of structural change as well as equalisation of the differences on the different economic areas and development of economically weak regions.

According to art. 30 of the German constitution regional economic support falls under the competence of the Länder. Thus, the Länder implement their own regional policies. Nevertheless, since the 1969 the Federal level and the Länder have also shared responsibilities according to Art 91a with a view to territorial policy, the so called common tasks (‘Gemeinschaftsaufgaben’, GA). The following GA are the principal policy instruments used to support ‘territorial’ economic development:

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  GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’)
  
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  GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’)
  
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  GA special programme ‘flood’ (‘Hochwasser’)
  

In the context of these GA the Federal and the Länder level share costs (50%-50%). The framework programme (3 year duration) for the implementation of these GA is set up jointly each year by the Federal and the Länder level. The responsible ministry at the Federal level is the Ministry for Economics and Labour.
GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’)

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  Complementary to EU target 2 regions
  
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  Based on Art. 91 a German constitution
  
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  The federal level contributes within this GA to the regional development of the Länder
  
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  The Länder set their own funding priorities
  
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  Supported areas have to set up integrated regional development concepts including most important measures for the regional development
  
  • 
    On the base of these development concepts the Länder decide about the overall funding priorities
    
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  Supported fields:
  
  • 
    Investments in producing and processing industries (‘gewerbliche Wirtschaft’)
    
    • 
      For:
      
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        Setting up or enlarging company sites
        
      • 
        Modernisation of company sites
        
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        Acquisition of lying idle company sites
        
      • 
        Development of business related infrastructure (up to 90% of eligible costs)
        
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        Partly:
        
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          Counselling services
          
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          Training measure
          
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          Investments in human capital
          
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          Applied research and development
          
    • 
      company level with ‘supra-regional’ performance
      
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      Including tourism
      
    • 
      Support for the creation of tele-workplaces
      
    • 
      Obligation to secure or/and create employment, which has to last for at least five years after the termination of financial support
      
    • 
      improvement of the income levels
      
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      aims of the spatial structure (‘Raumordnung’) have to be obeyed to
      
    • 
      projects have to avoid harmful emission and correct waste treatment has to be guaranteed
      
  • 
    Development of the ‘economy supporting’ infrastructure (‘wirtschaftsnahe Infrastruktur’ in weak regions)
    
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  LIMITED support for:
  
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    Processing industry concerning agriculture and fishery
    
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    Iron and steel processing industry
    
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    Shipyards
    
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    Automotive industry
    
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  NOT supported fields:
  
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    Agriculture, fishery (if not processing)
    
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    Mining, processing of stones, earth
    
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    Energy and water supply
    
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    Building trade
    
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    Transport and storage business
    
  • 
    hospitals
    
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  Supported areas (since 2000)
  
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    Have to be below the German average
    
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    Defined alongside 170 labour market regions
    
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    To be distinguished between different areas:
    
  • 
    A-areas (A-Fördergebiete)
    
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      Strong development disparity
      
    • 
      According to art. 87, 3a TEC
      
    • 
      Maximum support levels for:
      
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        SME: 50%
        
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        Others: 35%
        
  • 
    B-areas (B-Fördergebiete)
    
    • 
      Very serious structural problems
      
    • 
      Labour market region Berlin
      
    • 
      According to art. 87, 3a TEC
      
    • 
      Maximum support levels for:
      
      • 
        SME: 43%
        
      • 
        Others: 28%
        
  • 
    C-areas (C-Fördergebiete)
    
    • 
      Very serious structural problems
      
    • 
      According to art. 87, 3c TEC
      
    • 
      Maximum support levels for:
      
      • 
        SME: 28%
        
      • 
        Others: 18%
        
  • 
    D-areas (D-Fördergebiete)
    
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      Very serious structural problems
      
    • 
      Based on the EU framework of state aid for SME
      
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      According to art. 87, 3c TEC
      
    • 
      Maximum support levels for:
      
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        SE: 15%
        
      • 
        ME: 7,5%
        
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        Others: max. 100.000 € for three years
        
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  Duration of support: max. 36 months
  
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  Procedure⁶¹¹:
  
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    Financial means are granted as additional funding on application
    
  • 
    The Länder
    
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      decide on granting the financial support
      
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      control the adherence to funding principles
      
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      can set regional support priorities
      
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    The Federal Ministry for Economics and Labour has to be informed on the grants on a monthly base.
    
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  Implementation lies with the Länder
  

General overview on GA grants 1998 - 2002⁶¹²:
Industrial branch

Processing industry	26.131 mio €	80%
Tourism	2.302 mio €	7%
Trade	880 mio €	3%
Service sector	892 mio €	3%
Building trade	247 mio €	1%
Others	2.031 mio €	6%

Business/industry supporting infrastructure (1991-2001)

Totally	16,4 mio €
For tourism	33%
For Industrial sites	20%
For traffic links	18%
For vocational training,	8%
For supply services	3%
For the restructuring of lying idle sites	2%
Other infrastructure measures	16%