EUROPEAN COMMISSION. In taking this decision, the Commission has relied on the following considerations:

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1 EUROPEAN COMMISSION Brussels, C(2015) 2552 final Subject: State aid/ Germany (Bavaria) Aid No SA (2014/N) Bavarian contract based programme for nature protection Forestry (VNP WaldR 2015) Sir, The European Commission (hereinafter: 'the Commission') wishes to inform Germany that, having examined the information supplied by your authorities on the aid scheme referred to above, it has decided not to raise any objections to the aid scheme in question, since it is compatible with the Treaty on the Functioning of the European Union (hereinafter: 'TFEU'). In taking this decision, the Commission has relied on the following considerations: 1. PROCEDURE (1) By electronic notification of 23 December 2014, registered by the Commission on the 5 January 2015, Germany notified, according to Article 108(3) TFEU, the above mentioned aid scheme. Following the request for information from the Commission on 13 February 2015, the German authorities provided additional information on 11 March 2015, registered as received on the same date. 2. DESCRIPTION (2) The same scheme has been run by Germany until December 2014 and was financed from Rural Development means (measure codes 225 and 227). The scheme was initially approved under State Aid Decision SA (N 545/2007). The subsequent modification of that scheme was approved under State Aid Decision SA (N 486/2009). Later on, the scheme was prolonged by Commission Decision SA (C(2011) 7687 of 28 November 2011) and Commission Decision SA (C(2014)1241 of 21 February 2014). H.E. Dr Frank-Walter Steinmeier Federal Minister for Foreign Affairs Werderscher Markt 1 D BERLIN Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2)

2 (3) Due to the different priorities set in the new German Rural Development Programme , these measures are no longer contained in the new programme. Germany envisages continuing these measures with national financing. (4) The German authorities maintain that the following changes have been made as compared to the period and the State aid decisions cited above. (a) In order to face the new challenges, in particular with regard to biodiversity, and in order to take account of the results of the current implementation of the EAFRD programme , some actions in the VNPWaldR 2015 foresee a longer commitment period and extending the support granted as a one-off payment per unit. (b) For the area-related measures 2.4 conservation of biotopes and 2.5 "Non-removal of deadwood" the payment will be made per tree with a 12- year commitment period. Since the environmental value is increased by the longer commitment period, the achievement of the conservation objective will be improved. (c) (d) The payment for the scheme complete non-use of forests" will be made as a lump sum with a 12-year commitment period instead of a 5-year commitment. Furthermore, the present measure foresees an adaptation to the European Union Guidelines for State aid in the agriculture and forestry sector and in rural areas (hereinafter "the Guidelines") Title of the scheme (5) Bavaria Directive for compensation according to the nature protection programme for forestry (VNP WaldR 2015) 2.2. Objective (6) The objective of the scheme is aid for forest-environment and climate services and forest conservation Beneficiaries (7) Forest owners (including large undertakings) in Bavaria. (8) Beneficiaries are private and corporate forest owners within the meaning of Art. 3 Bayerisches Waldgesetz in so far as they have an in rem or compulsory exploitation right for all land included in the application for the duration of the commitment. Associations, federations and associations of forest owners can be beneficiaries of inter-company measures. In relation to the previous schemes approved by the Commission there are no changes as regards the aid beneficiaries. 1 OJ C 204, , p

3 (9) The following categories are not eligible beneficiaries under the present scheme: other Member States, Bund, Länder and legal persons at least 25 % of whose capital is held by the institutions mentioned in the previous part of this sentence Legal Basis (10) The legal basis for the scheme is: Bayern - Richtlinie über Zuwendungen nach dem Bayerischen Vertragsnaturschutzprogramm Wald (VNPWaldR 2015) Änderung der Richtlinien über Zuwendungen nach dem Bayerischen Vertragsnaturschutzprogramm Wald vom Richtlinie über Zuwendungen nach dem Bayerischen Vertragsnaturschutzprogramm Wald (VNPWaldR 2012) vom Richtlinien über Zuwendungen nach dem Bayerischen Vertragsnaturschutzprogramm Wald (VNPWaldR 2007) vom Richtlinien über Zuwendungen nach dem Bayerischen Vertragsnaturschutzprogramm Wald (VNPWaldR 2007) vom Bayerisches Waldgesetz Bundesnaturschutzgesetz Bundeswaldgesetz Bayerisches Naturschutzgesetz Bayerische Haushaltsordnung (BayHO) and Verwaltungsvorschriften. 2.5 Duration (11) From the date of Commission approval until 31 December Budget and aid intensity (12) The annual budget is set at EUR 4 million (total budget of the scheme EUR 24 million). (13) The aid intensity is up to 100 % of the eligible costs. (14) The measures will be financed on the basis of flat-rate costs or lump sums described in the sub-measures below. These costs and payments were identified beforehand by the Bavarian Forestry Office (Bayerische Landanstalt fur Wald und Forstwirtschaft). A specific calculation of the maximum aid intensity and the amount of aid from the local granting authority therefore does not take place. (15) This aid cannot be cumulated with aid received from other local, regional, national or EU schemes to cover same eligible costs. 3

4 2.7 Description of the aid Mandatory requirements established by the national legislation (16) The Bavarian Forest Act (BayWaldG) requires forest owners to manage the forests appropriately (Art. 14). Appropriate management in accordance with Article 4, point 1 means safeguarding the forests' economic, ecological and social functions. In particular this obliges forest owners to: (a) (b) (c) (d) rejuvenate the forest in line with its location, without the requirement to use specific tree species, care for forest soils and crops, reforest areas which have been cleared due to felling or damage within a specific period of time, protect the forest against damage of all kinds, for example from insects. Voluntary commitments under the notified scheme (17) Beyond these basic requirements, the measures under the VNPWaldR 2015 entail the following obligations: (a) (b) (c) (d) (e) (f) Reintroduction of a traditional forest management form (coppicing) and clearance and upkeep, together with an undertaking not to convert to the economically more profitable high forests, Non-use of forests with an additional ban on planting measures so as to preserve forest habitats in accordance with Annex I of the Habitats Directive, alder carrs and crops near the nesting sites of bird species which are sensitive to disturbance, Creation of open forest structures combined with a complete non-use: This will ensure that these special sites in forests on which a high number of species threatened with extinction depend are preserved, Non-use of individual trees to maintain biotope trees and deadwood; Partial non-use in beaver habitats: The removal of soft deciduous trees and birches is not allowed, other species can only be removed after authorisation by the competent local office for food, agriculture and forestry, with the involvement of the lower nature-protection authority. (18) The forest owners undertake, within the measures contained in the VNPWaldR 2015, to voluntarily restrict the use of forests for conservation purposes. The forest owners, with the premiums, receive incentives to carry out specific nature conservation activities in the forest, as described in the sub-measures below. 4

5 2.7.1 Measure 2.1. Upkeep and restoration of coppiced forests (19) In medium and coppiced forests, the traditional use of under-wood as firewood will be reintroduced or continued. Medium and coppiced forests are centres of high biodiversity due to the introduction of forest and grassland plants, fungi and animal species. (20) The following aid amounts apply: (a) the transfer of the waiver in coppiced high forests (Hochwald) (measure 5., commitment period of 5 years): EUR 80 per hectare per year for upkeep and restoration of coppiced forests (Mittelwald) with a rotation period of up to 30 years EUR 55 per hectare per year for upkeep and restoration of coppiced forests (Mittelwald) with a rotation period of up to 30 years, EUR 50 per hectare per year for coppices (Niederwald) with a rotation period of up to 25 years. (b) Removal of under-wood and upkeep (lump-sum payment without a commitment period): EUR per hectare (coppiced forest), EUR per hectare (Pflegehieb). (21) In measure a lump-sum payment will be paid. 2 The amount of the lump sum is fixed by the Bavarian Forestry Office and calculated as the product of the costs incurred by the forest owners for the coppicing of the stools and of the under-wood in medium forests. When implementing the two measures the forest owner undertakes not to convert the coppiced forests into high forests. He must also remove the under-wood or maintain the forest in accordance with a forestry concept drawn up by the Office for Food, Agriculture and Forestry or with a forestry expertise or economic plan aimed at restoring or maintaining the kind of traditional forestry practices which promote biodiversity Measure 2.2. "Preservation of beaver habitats" (22) In beaver habitats, dynamic changes to the body of water by the beavers' construction (lodges, dams) and tree felling are to be tolerated and the area's suitability for the beaver maintained. The beaver is strictly protected under Annexes II and IV of the Habitats Directive. (23) The aid is paid as a flat rate and the amount of aid was fixed by the Bavarian Forestry Office using current data and comparison with the previous regulation. The aid is aimed at covering additional costs and losses of income due to these 2 Measure was already in the previous scheme VNPWald 2012 and was approved by the Commission as aid for non-productive investments pursuant to Article 49 of Regulation (EC) No 1698/

6 commitments. These losses are in particular due to forest use being postponed, leading to loss of value. Transaction costs were not taken into consideration. (24) The aid is calculated as compensation for the loss of forest use in beaver habitats. (25) The following aid intensity will apply: EUR 150 per hectare per year Measure 2.3 "Non-use" (26) Biotope trees and deadwood are always rare in commercial forests since they have a lower usability value. At the same time they have a high ecological value, as a large number of species depend on them (e.g. woodpeckers, deadwood beetles). (27) Complete non-use of particularly valuable forest habitats under Annex I of the Habitats Directive, as well as alder carrs, will enable them to develop separately, creating different structures and important, disturbance-free habitats for rare and endangered species. This includes land near the nesting sites of large bird species. In the case of open forests, the non-use is preceded in the beginning by the opening up process in order to meet the specific habitat requirements of animal/plant species which need a great deal of light. (28) The following aid amounts will apply: (a) complete non-use of forests with an additional prohibition of planting measures (one off lump-sum payment, commitment period: 12 years): EUR 1,200 per hectare for bog woodland, forests of slopes, screes and ravines 3 EUR 2,300 per hectare in the case of old and declining forests. 4 (b) creation of open forest structures with complete non-use as in measure through removing of shrubs (commitment period: 5 years): EUR 255 per hectare per year. (29) Sub-measure is funded using a lump-sum payment of EUR or 2 300, depending on the crop (cf. Annex to the VNPWaldR 2015). The commitment period is 12 years. In calculating the aid the annual opportunity costs (advantages of the best option) were factored in: By not managing the forest in the conventional way, the owner forgoes annual income, and the non-use of a crop which is ripe for felling leads to quality losses and thus additional costs. As the lump sum is paid at the beginning of the 12-year commitment period, it is discounted. 3 4 Schlucht- und Hangmischwälder, Moorwälder, gewässerbeeinflusste Feuchtwälder und Erlenbruchwälder, Bestände im Umgriff von Horststandorten besonders störungsempfindlicher Vogelarten Alters- und Zerfallsphasen von buchendominierten Laub- /Laubmischwäldern, Eichen- Hainbuchenwäldern und natürlichen Nadel-/Nadelmischwäldern außerhalb von Mooren (nur in Natura 2000-Gebieten) 6

7 (30) Sub-measure is funded at a rate of EUR 255 per hectare per year. The commitment period for this measure is five years. The amount of aid was fixed by the Bavarian Forestry Office. In order to calculate the aid, various model crops were cultivated on low-growth sites and opened up at different ages; the negative contributions were discounted over the commitment period. This aid is needed because the forest owners have to bear not only the losses in income due to the complete non-use of the forest but also the additional costs of the measure in the VNPWaldR This measure was already part of the previous regulation VNPWald 2012 with a premium of EUR 250 per hectare per year Measure 2.4 "Preservation of biotope trees" (31) Biotope trees are always rare in commercial forests since they have a lower usability value. At the same time they have a high ecological value, as a large number of species depend on them (e.g. woodpeckers, deadwood beetles). (32) This measure is funded using a lump-sum payment per tree. The commitment period is 12 years. In calculating the aid the opportunity costs to the forest owner due to non-use of biotope trees for the 12-year commitment period were factored in. Moreover, the cultivation handicaps (additional effort needed to fell trees near the biotope trees) and the necessary monitoring of the biotope trees were considered. As the lump sum is paid at the beginning of the 12-year commitment period, it is discounted. (33) The following aid amounts apply (one off payments, commitment period: 12 years) (a) (b) (c) 125 EUR per tree in the case of trees with a diameter at breast height less than 60 cm, 150 EUR per soft deciduous tree or in the case of coniferous trees with a diameter at breast height (DBH) of at least 60 cm, 195 EUR per tree of broadleaves (except soft deciduous trees) with a diameter at breast height (DBH) of at least 60 cm high Measure 2.5 " Non-removal of deadwood'" (34) Deadwood is always rare in commercial forests since they have a lower usability value. At the same time they have a high ecological value, as a large number of species depend on them (e.g. woodpeckers, deadwood beetles). (35) This measure is funded using a lump-sum payment of EUR 90 per deadwood tree. The commitment period is 12 years. In calculating the aid the opportunity costs to the forest owner due to non-removal of deadwood were factored in. In addition, the fact that the wood can no longer be used as firewood after the 12-year commitment period was taken into account. As the lump sum is paid at the beginning of the 12-year commitment period, it is discounted. (36) The following aid amounts apply (commitment period: 12 years): EUR 90 per dead wood (a standing deadwood with at least 40 cm DBH, lying deadwood with butt-end diameter of 40 cm and a minimum length of 3-metre). 7

8 Incentive effect and aid to large undertakings (37) The German authorities state that the aid cannot be awarded wherever the work on the relevant project or activity has already started prior to the lodging of an aid application by the applicant to the national authorities. This application has to comprise at least the name of the applicant, its size and the eligible costs. (38) According to the German authorities, large undertakings will have to describe, in the application, the situation that would have occurred without the aid (counterfactual scenario) and to submit documentary evidence in support of that counterfactual scenario, while the national authorities will carry out a credibility check of the counterfactual scenario and confirm that the aid has the required incentive effect. Other commitments (39) The German authorities confirm that the aid would not apply to undertakings in difficulty within the meaning of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty 5. (40) Germany commits to suspend the payment of the aid if the beneficiary still has at its disposal an earlier unlawful aid that was declared incompatible by a Commission Decision (either concerning an individual aid or an aid scheme), until that beneficiary has reimbursed or paid into a blocked account the total amount of the unlawful and incompatible aid including the corresponding recovery interest. (41) Germany commits to publish the information required under point (128) of the Guidelines by the deadline specified in point (131) of the Guidelines. 3. ASSESSMENT 3.1. Existence of State aid (42) For Article 107(1) TFEU to apply, the scheme must provide an economic benefit to an undertaking, the aid must be selective, the benefit must be granted by the State or through State resources and the aid must distort or threaten to distort competition and be capable of affecting trade between Member States. (43) The scheme is financed out of State resources, from the State budget (recital (3)). It benefits only certain undertakings (i.e. undertakings active in the forestry sector) (recital (7)). (44) The scheme has the potential to distort competition as it confers an economic advantage to its recipients. According to the case law of the Court of Justice, the mere fact that the competitive position of an undertaking is strengthened compared to other competing undertakings, by giving it an economic benefit 5 The definition of undertakings in difficulty applied under the European Union Guidelines for State aid in the agricultural and forestry sectors, OJ C 204, , p. 1., is covered by the one that applies in the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ C 249, ). 8

9 which it would not otherwise have received in the normal course of its business, points to a possible distortion of competition. (45) Aid to an undertaking is likely to affect trade between Member States where that undertaking operates in a market open to intra-union trade. (46) The beneficiaries of aid operate on the forestry market where trade between Member States takes place. Statistical data shows that 434, thousand cubic metres of round wood were produced in the European Union in 2013, out of which around 36,330 thousand cubic metres were traded between EU Member States. In the same year, Germany exported 53, thousand cubic meters to other EU countries. The sector concerned is thus open to competition at EU level and therefore sensitive to any measure in favour of the production in one or more Member States. Therefore, the present scheme is liable to distort competition and to affect trade between Member States. (47) In light of the above, the scheme at hand constitutes State aid as the conditions of Article 107(1) TFEU are fulfilled. It may only be considered compatible with the internal market if it can benefit from one of the derogations provided for in the TFEU Compatibility of State aid (48) In the present case, Article 107(3)(c) TFEU provides the appropriate basis for compatibility. Under that provision, aid to facilitate the development of certain economic activities or of certain economic areas may be considered to be compatible with the internal market where such aid does not adversely affect trading conditions to an extent contrary to the common interest. (49) In the agricultural and forestry sectors, this derogation applies to aid which complies with the Guidelines Application of the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 (50) It follows from point (551) of the Guidelines that the Commission will consider aid for forest-environment and climate services and forest conservation compatible with the internal market under Article 107(3)(c) of the Treaty if it complies with the common assessment principles of the Guidelines and with the conditions set in Section 2.3 Part II of the Guidelines. Common Assessment Principles (51) In conformity with point (43) of the Guidelines, the scheme aims to promote the efficient and sustainable use of resources in the German forestry sector. Pursuant to point (47) of the Guidelines, the German authorities demonstrate how the present scheme fits into and is consistent with the Rural Development 6 EUROSTAT database, Roundwood production and trade, update from 12/08/14. 7 Ibid. 9

10 Programme Germany The measures under this scheme are rural development-like and were implemented under Codes 225 and 227 of the Bavarian Rural Development Programme. This scheme is designed in a consistent manner with Regulation (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) 8. (52) In line with point (52) of the Guidelines, the German authorities assess the environmental impact of the schemes, demonstrating that the aid measure does not result in an infringement of applicable Union environmental protection legislation. The German authorities foresee protection measures to respect environmental sensitivities, including the protection of habitats and species. (53) State aid can achieve an objective of common interest if it is targeted towards the correction of market failures. According to points (55) of the Guidelines, the Commission considers that the market is not delivering the expected objectives without state intervention concerning the aid measures fulfilling the specific conditions laid down in Part II of the Guidelines. The scheme falls under this part of the Guidelines, so the conditions on the need for State intervention are therefore met. (54) Pursuant to points (56) and (57) of the Guidelines an aid is appropriate if no other less distortive policy instrument or other less distortive type of aid make it possible to achieve the same contribution to the objectives of CAP. The German authorities inform that other potentially less distortive forms of aid do not exist at the moment and the premiums paid are the best instruments to compensate for these forest-environmental commitments, as referred in point (62) of the Guidelines. The Commission therefore considers the aid instruments appropriate and the specific aid forms are in line with the Part II of the Guidelines. (55) In conformity with point (66) of the Guidelines, the scheme has an incentive effect if it changes the behaviour of undertakings in such a way that they engage in additional activity contributing to the development of the sector, in which they would have normally not engaged in without aid or would have engaged in a different or restricted manner. Given the fact that, in the absence of the aid forest owners don't enter into these commitments (recitals (16) and (17)), the State intervention has an incentive effect. (56) According to points (70)-(71) of the Guidelines, the project should not start prior to the aid application and this application has to comprise at least the name of the applicant, its size and the eligible costs. As described in recital (37) above, the conditions set out in points (70)-(71) of the Guidelines regarding the incentive effect are met. (57) Pursuant to point (84) of the Guidelines, proportionality is fulfilled if the eligible costs are in line with the specific conditions set out in Part II of the Guidelines and the maximum aid amounts for each type of aid are respected. The aid amounts of the scheme comply with the maximum aid amounts of the Guidelines as shown below. 8 OJ L 347, , p

11 (58) Points (99)-(100) of the Guidelines contain rules on cumulation. As the German authorities have confirmed that aid cannot be cumulated with aid received from other local, regional, national or EU schemes to cover same eligible costs (recital (15)), these points are not applicable to the scheme at hand. (59) Pursuant to point (113) of the Guidelines, the negative effect on competition and trade is limited to the minimum and the aid has positive effects on the development of the sector if it fulfils the conditions set out in Part II of the Guidelines and does not exceed the relevant maximum aid intensities specified therein. As the conditions of Part II of the Guidelines are complied with (see section below), the negative effect on competition and trade is limited to the minimum. (60) In accordance with the requirements of point (128) of the Guidelines, the German authorities specify that the relevant information will be published on the website of the granting authority (recital (41)). Specific assessment according to chapter 2.3 of the Guidelines (61) According to point (552) of the Guidelines, aid under this measure must be granted per hectare of forest. As shown above, all measures except 2.4 and 2.5 present comply with this requirement. (62) According to point (91) of the Guidelines, where commitments under Section 2.3 of Part II of the Guidelines are expressed in units other than those set out in Annex II to Regulation (EU) No 1305/2013, Member States may calculate payments on the basis of those other units. In such cases, the Member States must ensure that the maximum amounts per year are complied with. (63) Aid for measures 2.4 and 2.5 is paid per tree. In their submission of 11 March 2015 the German authorities maintain that a hectare never comprises more than 10 such trees. Therefore, theoretically, the payment per hectare will not exceed EUR 1950 for measure 2.4 and 900 for measure 2.5. Given the fact that the compensation is in the form of a one-off payment with a commitment period of 12 years, the yearly amount of EUR 200 per hectare is complied with. (64) According to point (552) of the Guidelines, for forest holdings above a certain threshold, aid must be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument. In their submission of 11 March 2015 the German authorities maintained that this condition is complied with. (65) According to point (553) of the Guidelines, aid can only cover voluntary commitments going beyond the relevant mandatory requirements established in national legislation. For aid measures financed exclusively from national funds, the relevant mandatory requirement should be identified and described in the State aid notification. As shown above in recitals (16) and (17), these conditions are complied with. (66) According to point (554) of the Guidelines, commitments must be undertaken for a period between five and seven years. However, where necessary and duly justified, Member States may determine a longer period for particular types of 11

12 commitments. In the case of aid measures financed exclusively from national funds, it should be identified in the State aid notification. (67) The German authorities maintain that general commitment period for the measures is of five years. For the sub-measures 2.3.1, 2.4 and 2.5, the commitment period is twelve years. However, the aid is paid as a one-off contribution linked to the obligation to voluntarily restrict the use of forests for conservation purposes. The German authorities maintain that the longer commitment period is more likely to provide an enrichment of forests and forest environments with age and ecological decline phases (Zerfallsphasen) and allows natural dynamics. For measures 2.4 and 2.5 the German authorities stated that this increases the chances of meeting the nature-protection targets set in the scheme, as the ecological value of each funded tree is safeguarded over a longer period (12 years). The conditions of point (554) of the Guidelines are therefore met. (68) As regards the beneficiaries of aid, point (556) of the Guidelines foresees that aid may be granted to public and private forest holders and other private law and public bodies and their associations. In the case of state-owned forests, aid may only be granted if the body managing such a forest is a private body or a municipality. As shown above in recitals (7) to (9), these conditions are fulfilled. (69) According to point (558) of the Guidelines, the aid can compensate beneficiaries for all or part of the additional costs and income foregone resulting from the commitments made. Where necessary it may also cover transaction costs to a value of up to 20 % of the aid premium paid for the forest-environment commitments. (70) The scheme provides compensation for the voluntarily restriction of the use of forests for conservation purposes. In line with the provisions of point (558) of the Guidelines, it is given as compensation for the additional costs (sub-measures , and 2.3.2) or the income forgone (sub-measures 2.3.2, 2.1.1, 2.2). (71) According to point (559) of the Guidelines, in duly justified cases for operations concerning environmental conservation, aid may be granted as a flat-rate or oneoff payment per unit for commitments to renounce the commercial use of trees and forests, calculated on the basis of additional costs incurred and income foregone. As shown above (recital (29), (32) and (35)), for the measures 2.3.1, 2.4 and 2.5, these conditions are complied with. (72) According to point (562) of the Guidelines, the aid, with the exception of aid for operations for the conservation of genetic resources as referred to in point (560) must be limited to the maximum amount of EUR 200 per hectare per year. That amount may be increased in duly substantiated cases taking into account specific circumstances to be justified in the rural development programmes or otherwise in the notification to the Commission. (73) The maximum amount of EUR 200 per hectare and year is complied with for most measures. This maximum is, however, exceeded for measures and The German authorities provided a justification for the higher amounts (recitals (21) and (30)) and pointed out that for measure this sum was also justified under the previous Rural Development Regulation. 12

13 (74) Taking the above into consideration, the Commission considers that the requirements regarding the compatibility of aid for forest-environment and climate services and forest conservation are fulfilled. 4. CONCLUSION (75) In line with the foregoing, the Commission considers that the relevant provisions of the Guidelines are complied with. (76) The Commission has accordingly decided not to raise objections to the aid on the grounds that it is compatible with the internal market pursuant to Article 107(3)(c) TFEU. (77) If any parts of this letter are covered by the obligation of professional secrecy according to the Commission communication on professional secrecy and should not be published, please inform the Commission within fifteen working days of notification of this letter. If the Commission does not receive a reasoned request by that deadline, you will be deemed to agree to the disclosure to third parties and to the publication of the full text of the letter in the authentic language on the Internet site: (78) If Germany wishes certain information to be covered by the obligation of professional secrecy please indicate the parts and provide a justification in respect of each part for which non-disclosure is requested. (79) Your request should be sent electronically via the secured system Public Key Infrastructure (PKI) in accordance with Article 3(4) of Commission Regulation (EC) No 794/2004, to the following address: agri-state-aidsnotifications@ec.europa.eu. Yours faithfully, For the Commission Phil HOGAN Member of the Commission 13