5
below or equal to the EU-27 average or an unemployment rate above or equal to
115 of the national average.
(14)
According to paragraph 168(e) of the RAG, a Member State may designate as
non-predefined ‘c’ areas under Criterion 5 contiguous areas of at least 50,000
inhabitants that are undergoing major structural change or are in serious relative
decline, provide that such areas are not located in NUTS3 regions or contiguous
areas that fulfil the conditions to be designated as predefined areas or under
Criteria 1 to 4.
(15)
According to paragraph 169 of the RAG, for the purpose of applying the criteria
set out in paragraph 168, the notion of contiguous areas refers to whole local
administrative unit 2 (LAU 2) areas or to a group of whole LAU 2 areas. A group
of LAU 2 areas will be considered to form a contiguous area if each of those
areas in the group shares an administrative border with another area in the group.
(16)
The Commission considers that the newly proposed municipalities fulfil the
conditions of Criterion 1 for the following reason:
They are all entire LAU 2 areas located within NUTS2 or NUTS3 regions
which have a GDP below the EU27 average
10
. All the additional
municipalities proposed are adjacent to existing Criterion 1 zones which form
contiguous areas and already respected the minimal population thresholds
11
.
In view of the above, the municipalities proposed satisfy all the conditions
for eligibility as a non-predefined 'c' area under Criterion 1 and comply with
paragraph 169 of the RAG with regard to the notion of contiguous areas.
(17)
The Commission considers that the newly proposed municipality of Archères
fulfils the conditions of Criterion 5 for the following reasons:
The municipality of Archères forms a contiguous area with the existing
Criterion 5 zone of Flin-sur-Seine – Carrières-sous-Poissy which had a
population of 109,491 inhabitants, and which will now have a population of
129,117 inhabitants;
Archères is not located in a NUTS 3 region or a contiguous area that fulfils
the conditions to be designated as a non-predefined area under Criteria 1 to 4;
In the case of Archères, France demonstrated the serious decline of the
industrial employment in the area and mainly in the automobile sector with a
loss of 1773 jobs over the last 5 years. This decline in industrial employment
is worse than at national level.
In view of the above, the proposed municipality of Archères satisfies the
conditions for eligibility as a non-predefined 'c' area under Criterion 5 and
complies with paragraph 169 of the RAG with regard to the notion of
contiguous areas.
10
As defined in recital 25 of Comission decision of 7 May 2014 on the French Regional aid map 2014-
2020 (case SA.38182).See footnote 1 above.
11
As listed in table 6 of Comission decision of 7.05.2014, pp.9-11.
6
3.2.
Respect of population reserve
(18)
In its decision on the French regional aid map 2014-2020 of 7 May 2014, the
Commission noted that France established a population reserve for non-
predefined ‘c’ areas in accordance with paragraph 180 of the RAG. This reserve
was quantified at 0.36% of the total national population of France. The population
reserve set out in the decision on the first use of the population reserve of 3 June
2015 leaves 172,207 inhabitants for future use of the reserve. The extra non-
predefined ‘c’ areas proposed by France in the present notification have a total
resident population of 128,060 inhabitants and is therefore well below the
remaining population reserve of 172,207 inhabitants. It leaves now a population
reserve of 44,147 inhabitants for future use.
3.3.
Maximum aid intensities proposed for 'c' areas
(19)
In accordance with paragraphs 174 to 176 of the RAG, France proposes to limit
the maximum aid intensity in all 'c' areas proposed to 10% GGE. Therefore, the
maximum aid intensities for regional investment aid in the 'c' areas notified by
France for the period till 31 December 2020 are in line with the maximum aid
intensities allowed for under the RAG.
3.4.
Increased maximum aid intensities for SMEs
(20)
In accordance with paragraph 177 of the RAG, the maximum aid intensities
applicable to large enterprises can be increased by up to 20 percentage points for
small enterprises or by up to 10 percentage points for medium-sized enterprises.
However, the increased maximum aid intensities for SMEs will not apply to aid
awarded for large investment projects as defined in paragraph 20(l) of the RAG.
3.5.
Other commitments made by the French authorities
(21)
The Commission takes note of the following commitments made by the French
authorities in the notification with regard to the amended map:
(a) The French authorities confirmed that all intentions to grant regional aid will
be notified to the Commission in accordance with Article 108(3) TFEU,
either as an aid scheme, or as an individual notification, unless a block
exemption regulation applies.
(b) The French authorities confirmed that all regional investment aid will respect
the maximum aid intensities of the region concerned as defined in the
regional aid map approved by the Commission and published in the Official
Journal of the European Union.
(c) The French authorities confirmed that for large investment projects (as
defined in paragraph 20(l) of the RAG) the aid ceilings of the region
concerned as defined in the regional aid map approved and published by the
Commission, will be adjusted according to the formula in paragraph 20(c) of
the RAG.
3.6.
Conclusion
(22)
In view of the above, the Commission concludes that the amendment of the
regional aid map till 31 December 2020, as notified by France, is in line with the
RAG.