EUROPEAN COMMISSION Brussels, C(2016) final Embargo VISTA illimité(*) Subject: State aid/germany SA. 42766 (2015/N) Rheinland-Pfalz: Support for the conservation of genetic resources in agriculture (Conservation of genetic resources - EGR) - Administrative decree of the Ministry for Environment, Agriculture, Food, Viticulture and Forestry Sir, The European Commission ("the Commission") wishes to inform Germany that, having examined the information supplied by your authorities on the State aid scheme referred to above, it has decided not to raise any objections to the relevant scheme as it is compatible with the internal market pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union ("TFEU"). The Commission has based its decision on the following considerations: 1. PROCEDURE (1) By electronic notification of 31 July 2015, registered by the Commission as received on the same day, Germany notified, according to Article 108(3) of the TFEU, the above mentioned aid scheme. (2) The Commission sent requests for additional information on 25 September 2015 and on 5 November 2015 which the German authorities provided on 26 October 2015 and 24 November 2015, respectively. H.E. Frank-Walter Steinmeier Federal Minister for Foreign Affairs Werderscher Markt 1 D - 10117 BERLIN (*) Ce timbre porte sur l'ensemble des documents qui composent le dossier. Commission européenne, B-1049 Bruxelles Belgique, Europese Commissie, B-1049 Brussel België Telephone: 32 (0) 2 299.11.11
2. DESCRIPTION 2.1. Title (3) Rheinland-Pfalz: Support for the conservation of genetic resources in agriculture (Conservation of genetic resources - EGR) - Administrative decree of the Ministry for Environment, Agriculture, Food, Viticulture and Forestry 2.2. Objective (4) With the present notification the German authorities wish to introduce an agrienvironment-climate measure consisting in the preservation of the diversity of animal genetic resources in agriculture. The measure contributes towards the conservation of agricultural biodiversity and a sustainable use of genetic resources in the agriculture by compensating the economic disadvantage associated with keeping Glan cattle (Glanrind), an endangered cattle breed, due to its lower productivity compared to other breeds. (5) The German authorities explained that the notified scheme is not part of the Rural Development Programme of Rheinland-Pfalz for 2014-2020 and that it is nevertheless designed in a consistent manner with Regulation (EU) No 1305/2013 1 and the rural development policy. According to the information provided, the scheme contributes to the priorities addressed in Rural Development Programme of Rheinland-Pfalz, in particular to EAFRD priority 4(a) (Restoring, preserving and enhancing biodiversity, including in Natura 2000 areas, and in areas facing natural or other specific constraints, and high nature value farming, as well as the state of European landscapes). The German authorities gave assurances that double financing is excluded. (6) The German authorities also explained the following: In addition to the agrienvironment-climate measures of the Rural Development Programme of Rheinland-Pfalz, the promotion of the local farm animal species 'Glan cattle', as part of the Federal Ministry for Food and Agriculture agro-biodiversity strategy and of the 'National Programme for the Conservation and Sustainable Use of Animal Genetic Resources', aims to preserve rare or endangered indigenous breeds of farm animal. At the same time, the extensive use of land will have a positive effect on the environment. The Glan is a medium-sized, dual-purpose breed mainly kept as suckler cows. It was formerly a multi-purpose breed known as the 'poor man's ox'. Although Glan cattle are no longer used to pull ploughs, they play a role in landscape conservation, since the undemanding animals help to keep the landscape open by browsing hedges, bushes and trees. 2.3. Legal basis (7) Förderung der Erhaltung genetischer Ressourcen in der Landwirtschaft (Erhaltung genetischer Ressourcen - EGR) - Verwaltungsvorschrift des Ministeriums für Umwelt, Landwirtschaft, Ernährung, Weinbau und Forsten [Support for the conservation of genetic resources in agriculture (Conservation of 1 Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJ L 347, 20.12.2013, p. 487). 2
genetic resources - EGR) - Administrative decree of the Ministry for Environment, Agriculture, Food, Viticulture and Forestry]. 2.4. Duration (8) From the date of the Commission decision until 31 st December 2020. 2.5. Budget (9) Overall budget is EUR 0.6 million, financed from the national budgetary resources. 2.6. Beneficiaries (10) Undertakings active in the primary agricultural production which are micro, small and medium-sized enterprises within the meaning of Annex I to Regulation (EU) No 702/2014 2 and which keep animals eligible for support. (11) The number of beneficiaries is estimated to be between 51 and 100. (12) Undertakings in which the State has a share of more than 25 % are excluded from the scope of beneficiaries. (13) The German authorities confirmed that the aid will not be granted to undertakings in difficulty within the meaning of point (35.15) of the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 3 (the "Guidelines"). (14) Germany committed to suspend the payment of the notified 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 unlawful and incompatible aid including the corresponding recovery interest. 2.7. Aid instrument (15) Direct grant. 2.8. Description of the aid scheme (16) The purpose of supporting the conservation of endangered genetic resources in agriculture is to offset the economic disadvantages, caused by particular management requirements or more limited services, that affect the breeding and keeping of endangered breeds of farm animals under the current basic economic and legal conditions. 2 3 Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (OJ L 193, 1.7.2014, p. 1). OJ C 204, 1.7.2014, p. 1, as amended by Commission Notice amending the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 (OJ C 390, 24.11.2015, p.4). 3
(17) To this end, support in the form of direct grants for the conservation of the genetic diversity of agricultural animals should be granted to enterprises keeping cattle and which, on a voluntary basis, make a commitment to keep, for a period of five years, animals of the Glan cattle breed. In addition, support should be granted for the additional cost associated with stock breeding of Glan cattle. (18) The German authorities confirmed that the notified scheme covers commitments to rear farm animals of local breeds which are genetically adapted to one or more traditional production systems or environments in the country and which are in danger of being lost to farming. The Glan cattle is a local breed, indigenous to Rheinland-Pfalz. (19) According to the information provided by Germany, the selection of eligible breed is effected by the Rheinland-Pfalz Ministry of the Environment, Agriculture, Food, Viticulture and Forestry on the basis of the country-wide recommendations of the Technical Advisory Group for animal genetic resources, in accordance with the principles of the National Programme for the conservation and sustainable use of animal genetic resources. (20) The number of animals and the endangered status of the supported breed is confirmed by the Friedrich Löffler Institute for Farm Animal Genetics in Mariensee (FLI Mariensee), a recognised German scientific authority. The Technical Advisory Group for animal genetic resources, which advises the Federal Government and the Länder on matters relating to the conservation of animal genetic resources also documents and confirms the above facts. The number of female breeding animals is calculated by the Information and Documentation Centre for Biological Diversity (IBV) at the Federal Office for Agriculture and Food (BLE) in Bonn. The survey data is stored in a national database 4. (21) Glan cattle are found on the red list of the Technical Advisory Group for animal genetic resources, and are classed under the endangered category 'population under surveillance' (Beobachtungspopulation), in accordance with the principles of the National Programme for the preservation and sustainable use of animal genetic resources. (22) Eligible for support are only those kept Glan cattle which are entered into the breeding book of the Fleichrinder-Herdbuch Bonn e.v. (recital (24)(c) below) and take part in a conservation breeding programme run by the Fleischrinder Herdbuch Bonn e.v. during the time span of the commitments. Would the number of livestock units over the commitment period go below the committed number, due to reasons out of the control of the aid recipient, the average number of livestock units over the commitment period will be used to calculate the aid amount. On the spot controls will be carried out to verify that the recipients keep to their commitments. (23) The support will be provided subject to withdrawal in the event that animals receiving the support are sold, leased or no longer used in accordance with the purpose of the support within a period of five years from the date that the support is authorised. 4 http://tgrdeu.genres.de/hausundnutztiere/index 4
(24) To be eligible to receive support, the applicants must: (a) (b) (c) (d) operate the undertaking themselves during the 5-year commitment period; in average, over the commitment period, keep supported breeding animals that have an age of at least two years; register the supported Glan cattle in a herd-book which must be kept by a recognised breeding organisation. In Rhineland-Palatinate the supported Glan cattle must be registered in the herd-book of the officially accredited breeders association Fleischrinder-Herdbuch Bonn e.v. In addition, the keeper must take part in that association's conservation breeding programme. The prerequisite for the recognition of a breeders association pursuant to the Animal Breeding Act is that it has the technical and human means to carry out a breeding programme for the relevant breed; this also includes the necessary skills and expertise to identify animals or breeds in danger of being lost to farming. make available all existing genetically relevant data to Fleischrinder- Herdbuch Bonn e.v., free of charge and in accordance with the provisions of the granting authority. (25) Compliance with these conditions is monitored and documented by the competent Land authority, the Dienstleistungszentrum Ländlicher Raum Westpfalz, as part of its administrative activities in implementing the aid rules and the National Programme. (26) The following annual aid amounts are foreseen: (a) (b) a maximum of EUR 200 per livestock unit (LU); an additional EUR 240 per LU for the provision of breeding animals for use in embryo transfer or collection of semen. (27) The relevant mandatory standards established pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013, the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013 and other relevant mandatory requirements established by national law should be complied with. However, the preservation of endangered local breeds does not stand in direct relation to these statutory requirements but consists of keeping breeds with a lower yield capacity than modern breeds, thereby contributing to biodiversity. (28) The German authorities have confirmed that the aid amounts for the agrienvironment-climate commitments are calculated on the basis of income foregone and additional costs resulting from the commitment. The scheme does not include any transaction costs. (29) The income foregone associated with keeping Glan cattle is due to the Glan cattle's relatively low productivity compared to other cattle breeds. The income foregone will be compensated with an annual premium of up to EUR 200 per livestock unit (LU). This represents maximum 65% of the actual income foregone according to the calculations submitted by the German authorities. 5
(30) The additional costs associated with the stock breeding of Glan cattle are due to the low number of Glan cattle. This makes it unprofitable for the insemination stations to keep male Gland cattle for artificial insemination. It is therefore necessary to keep stock bulls of Glan cattle on the farms. The support will be for the additional costs associated with: provision of stock bulls for artificial insemination, natural insemination, semen collection, quality control and preparation of semen; and the provision of female breeding animals for harvesting of embryos in order to shorten the reproductive cycle. The support for stock breeding should lead to an increase in the number of offsprings from Glan cattle. The additional costs will be compensated with an annual premium of up to EUR 240 per livestock unit on top of the support for keeping Glan cattle. This additional annual premium represents maximum 28% of the actual additional costs according to the calculations submitted by the German authorities. (31) The German authorities explained that the aid calculations used in the National Framework which are based on national averages and considerations apply to the Glan cattle breed. They are, in principle, calculated to compensate for the loss of income on sites whose natural earning potential is equivalent to the national average. As a method, a comparison of gross margins of different reference species using conventional breeds and rare or endangered indigenous breeds was selected. Gross margins (variable market performance minus variable costs such as the value of offspring, supplementary, basic and concentrated feed costs, veterinary and other variable costs) were established on the basis of aid calculations carried out on a scientific basis by the Agricultural Engineering and Construction Association (Kuratorium für Technik und Bauwesen in der Landwirtschaft e.v. (KTBL)). For Rheinland-Pfalz, additional calculations were carried out on the basis of performance-cost and cost comparisons which take into account Rhineland-Palatinate's particular financial circumstances. In the case when annual premiums are paid to compensate for the additional costs associated with the stock breeding of Glan cattle, the annual premium will exceed the maximum amount laid down in the Guidelines. The German authorities explained that the higher annual premium is necessary due to the exceptional circumstances associated with stock breeding of Glan cattle as described in recital (30). The German authorities provided explanations and data relating to the method for calculating the aid amounts. They also confirmed that, as assessed by the Dienstleistungszentrum Ländlicher Raum Westpfalz (recital (25)), the calculations and the corresponding aid contain only elements that are verifiable, are based on figures established by appropriate expertise, indicate clearly the source of the figures used, are differentiated to take account of regional or local site conditions and the actual land use, and do not contain elements linked to investment costs. Summary of the aid amounts and income foregone in keeping of the breed "Glan cattle": Suckler cows Dairy cows 6 Artificial insemination EUR/LU Embryo transfer Dairy cows and artificial insemination Dairy cows and embryo transfer Income foregone 306 354 354 354 Additional costs 1 065 850 1 065 850 Transaction costs
Aid per year 200 200 240 240 440 440 Aid limit 200 200 200 200 200 200 Exceeding of the aid limit 40 40 240 240 (32) The farmers will have to submit an aid application before the commitment period has commenced. It will include inter alia: 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. (33) The aid will be granted annually. (34) The German authorities explained that the undertakings which will carry out the operations under the present scheme will be provided with the necessary knowledge and information through the Dienstleistungszentrum Ländlicher Raum Westpfalz, the Chamber of Agriculture Rheinland-Pfalz and the Fleichrinder- Herdbuch Bonn e.v. 2.9. Cumulation (35) Aid under this scheme cannot be cumulated with aid received from other local, regional, national or Union schemes to cover the same eligible costs. 2.10. Other commitments (36) Germany made a commitment to publish the information required under point 128 of the Guidelines at the latest by the deadline set out in point 131 of the Guidelines. 3. ASSESSMENT 3.1. Existence of State aid - Application of Article 107(1) TFEU (37) For Article 107(1) TFEU to apply, the scheme must provide an economic advantage to an undertaking which it would not have received in its normal course of business, the aid must be granted to certain undertakings, the advantage must be granted by a Member State or through State resources and the scheme must be capable of affecting trade between Member States. (38) The scheme in question confers an advantage on its recipients, as it favours only farmers in Rheinland-Pfalz (recital (10)) by strengthening their position on the market. This advantage is granted through State resources (recital (9)). 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 which it would not otherwise have received in the normal course of its business, points to a possible distortion of competition 5. (39) Pursuant to the case law of the Court of Justice, aid to an undertaking is likely to affect trade between Member States where that undertaking operates in a market 5 Judgment of the Court of 17 September 1980, Case 730/79, Philip Morris Holland BV v. Commission of the European Communities, ECLI:EU:C:1980:209. 7
open to intra-union trade. 6 The beneficiaries of aid operate in the agricultural sector which is a market sector where intra-eu trade takes place 7. The sector concerned is 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 affect trade between Member States. (40) In light of the above, the conditions of Article 107(1) TFEU are fulfilled. It can therefore be concluded that the proposed scheme constitutes State aid within the meaning of that Article. It may only be considered compatible with the internal market if it can benefit from any of the derogations provided for in the TFEU. 3.2. Lawfulness of the aid Application of Article 108(3) TFEU (41) The aid scheme was notified to the Commission on 31 July 2015. It has not been implemented. Therefore, Germany has complied with its obligation under Article 108(3) TFEU. 3.3. Compatibility of aid 3.3.1. Application of Article 107(3)(c) TFEU (42) Under Article 107(3)(c) TFEU, an aid may be considered compatible with the internal market, if it is found 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. (43) For this derogation to be applicable, the aid must fulfil the requirements of the relevant Union State aid legislation. 3.3.2. Application of the Guidelines (44) As regards the notified aid scheme, Section 1.1.5.1 "Aid for agri-environmentclimate commitments" of Part II of the Guidelines is applicable. (45) It follows from point 207 of the Guidelines that the Commission will consider aid for agri-environment-climate commitments compatible with the internal market under Article 107(3)(c) TFEU if it complies with the common assessment principles of the Guidelines and with the conditions set out in Section 1.1.5.1 of Part II of the Guidelines. 3.3.2.1. Conditions set out in Section 1.1.5.1 of Part II of the Guidelines (46) Based on the information provided in recitals (10) and (17), aid is granted to farmers active in the primary agricultural production who undertake agrienvironment-climate commitments on a voluntary basis on agricultural land. Therefore, the conditions set out in points 206 and 208 of the Guidelines are met. 6 7 See in particular the judgment of the Court of 13 July 1988 in Case 102/87, French Republic v Commission of the European Communities, ECLI:EU:C:1988:391. Statistical data show that in 2013 German trade with all agricultural products with EU countries amounted to EUR 52 570.5 million for exports and to EUR 60 552.7 million for imports. Source: European Commission, Agriculture in the European Union and the Member States - Statistical factsheets, Germany - January 2015. Available at: http://ec.europa.eu/agriculture/statistics/factsheets/pdf/de_en.pdf. 8
(47) As described in recitals (6) and (16), the scheme aims to preserve rare and endangered breeds of farm animals and contributes to the conservation of the genetic potential in the agricultural sector, thus preserving and promoting the necessary changes to agricultural practices that make positive contribution to the environment. It follows that point 209 of the Guidelines is complied with. (48) According to point 210 of the Guidelines, the aid shall cover only voluntary commitments that go beyond relevant mandatory requirements. As explained in recital (27), the preservation of endangered breeds does not stand in direct relation to the mandatory requirements referred to in point 210 of the Guidelines but consists of keeping breeds with a lower yield capacity than modern breeds. The Commission therefore considers that the conditions set out in point 210 of the Guidelines are complied with. (49) The German authorities explained (recital (34)) that the undertakings which will carry out the operations under the present scheme will be provided with the necessary knowledge and information, as required under point 211 of the Guidelines. That condition is therefore fulfilled. (50) The commitments are undertaken by the beneficiaries for a period of 5 years (recital (17)). The requirement laid down in point 212 of the Guidelines is therefore met. (51) Points 213 to 215 of the Guidelines are not relevant for the present aid scheme and therefore not applicable. (52) As confirmed by the German authorities (recital (18)), the present scheme covers commitments to rear farm animals of local breeds which are genetically adapted to one or more traditional production systems or environments in the country and which are in danger of being lost to farming, in line with point 216 of the Guidelines. (53) Since the eligible species under the notified scheme are cattle (recital (17)), the condition of point 217 of the Guidelines is complied with. (54) According to point 218 of the Guidelines, local breeds are considered as being in danger of being lost to farming if the following conditions are fulfilled: a) the number, at national level, of breeding females concerned is stated; b) that number and the endangered status of the listed breeds is certified by a duly recognised relevant scientific body; c) a duly recognised relevant technical body registers and keeps up-to-date the herd or flock book for the breed; d) the bodies concerned possess the necessary skills and knowledge to identify animals of the breeds in danger. Since the German authorities provided that information to the Commission, as described in recitals (20) - (25) above, the Commission considers that the conditions of point 218 of the Guidelines are met. 9
(55) The aid will cover compensation to beneficiaries for part of the additional costs and income foregone resulting from the commitments they made (recitals (28)- (30)) and it will be granted annually (recital (33)). The requirements laid down in point 221 of the Guidelines are therefore complied with. (56) Since the scheme does not include transaction costs (recital (28)), points 223 to 225 of the Guidelines are not applicable. (57) According to point 228 of the Guidelines, aid for local breeds in danger of being lost to farming must be limited to EUR 200 per livestock unit per year. This amount may however be increased in duly substantiated cases taking into account specific circumstances to be justified in the notification to the Commission (point 229 of the Guidelines). For the present scheme, in the case when annual premiums are paid to compensate for the additional costs associated with the stock breeding of Glan Cattle, the annual premium will exceed the maximum amount laid down in point 228 of the Guidelines (maximum EUR 200 per livestock unit). The German authorities explain that the higher annual premium (EUR 200 plus EUR 240) is necessary due to the exceptional circumstances associated with stock breeding of Glan Cattle as described in recital (30). The German authorities conveyed detailed calculations and justification for the additional aid exceeding the maximum amounts (cf. recitals (30) - (31)). Aid amounts are calculated on the basis of additional costs and income foregone with aid of standardised calculation models of specialised scientific bodies (recital (31)). Based on the explanations given by the German authorities, the Commission considers that the condition concerning the aid amount is fulfilled. (58) On the basis of the above, the Commission considers that the requirements set out in the Guidelines concerning the aid for agro-environmental-climate commitments are fulfilled. 3.3.2.2. Common assessment principles Contribution to a common objective (59) As described in recital (4) above, the objective of the present notified scheme is to introduce an agro-environmental-climate measure consisting in the preservation of the diversity of animal genetic resources in agriculture. The notified aid scheme contributes to a common objective in line with points 43 and 44 of the Guidelines. The scheme is a rural development-like measure, which is not included in the RDP of Rheinland-Pfalz for 2014-2020. Therefore, there is no risk of overlap and double funding is impossible. As described in recital (5), the notified aid scheme can be regarded as consistent with the RDP of Rheinland- Pfalz for 2014-2020. The Commission thus considers that the conditions of point 47 of the Guidelines are met and that the scheme contributes to the objectives of rural development. (60) As explained by the German authorities (recitals (4) and (6)), the scheme aims to preserve rare and endangered breeds of farm animals, making a contribution to an extensive location-appropriate farming. Therefore, no negative impact on the environment within the meaning of point 52 of the Guidelines has been identified. Need for State intervention - Appropriateness of aid 10
(61) Since the present scheme fulfils the specific conditions laid down in the Guidelines (recital (58)) and it respects the specific form foreseen for it (recital (15)), the Commission considers, in line with points 55, 57 and 60 of the Guidelines that the aid is necessary and that it is granted by means of an appropriate instrument to address the objective of common interest. Incentive effect (62) It follows from recital (32) above that work on the relevant activity will only start after the beneficiary has submitted an aid application to the national authorities and that the aid application includes the elements required under point 71 of the Guidelines. Therefore, the condition of the incentive effect of the aid scheme is complied with. Proportionality (63) Pursuant to point 82 of the Guidelines, in principle, in order for the aid to be proportionate the Commission considers that the aid amount should not exceed the eligible costs. In that regard it is noted that the Guidelines establish certain maximum aid amounts which may be increased in duly substantiated cases taking into account specific circumstances to be justified to the Commission. As described above in recitals (30) - (31), the aid amounts in certain cases go beyond the maximum thresholds allowed by the Guidelines. Nonetheless, the German authorities have submitted a calculation of the aid amounts that shows that they do not exceed the eligible costs (recital (31)). The aid amounts are fixed on the basis of standard assumptions of the additional costs and the income foregone. All elements contained are verifiable, based on figures established by appropriate expertise indicating clearly the source, are differentiated to take account of regional or local site conditions and the actual land use, and do not contain investment costs (recital (31)), which respects the relevant requirements of point 93 of the Guidelines. The German authorities explained that the calculation of the aid amounts takes into account the exceptional circumstances associated with stock breeding of Glan Cattle (recital (30)). The notified aid amounts are therefore justified. In addition, as confirmed by the German authorities (recital (35)), the aid cannot be cumulated with aid received from other local, regional, national or EU schemes to cover the same eligible costs. On this basis, the criterion of proportionality is fulfilled. Avoidance of undue negative effects on competition and trade (64) According to point 113 of the Guidelines, the Commission considers that where an aid fulfils the conditions and does not exceed the relevant maximum aid intensities, laid down in the applicable Sections of Part II of these Guidelines, the negative effect on competition and trade is limited to the minimum. The present scheme fulfils the conditions laid down in the Guidelines (recital (58)). In certain cases, the aid amounts may exceed the relevant maximum aid amounts (recital (31)). Nevertheless, as demonstrated by the German authorities, they are substantiated and justified in line with point 229 of the Guidelines (recitals (30)- (31)). Therefore, the Commission considers that the negative effect on competition and trade is limited to the minimum. Transparency 11
(65) Germany has committed to comply with the transparency requirements set out in point 128 of the Guidelines at the latest by the deadline set out in point 131 of the Guidelines (recital (36)). 3.3.2.3. Other commitments (66) The Commission notes that undertakings in difficulty are excluded from the scope of this notified aid scheme in line with point 26 of the Guidelines (recital (13)) and that Germany will suspend the payment of the notified aid if the beneficiary still has at its disposal an earlier unlawful aid that was declared incompatible by a Commission decision in line with point 27 of the Guidelines (recital (14)). 3.3.2.4. Duration of the aid scheme (67) Pursuant to point 719 of the Guidelines, the Commission only authorizes schemes of limited duration. Aid schemes other than those benefiting from co-financing under Regulation (EU) No 1305/2013 and its implementing regulation should not apply for more than seven years. It follows from recital (8) that this requirement is met. 4. CONCLUSION The Commission has accordingly decided not to raise objections to the notified aid scheme on the grounds that it is compatible with the internal market pursuant to Article 107(3)(c) TFEU. 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 Germany will be deemed to agree to the publication of the full text of this letter. 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. Your request should be sent electronically via the secured e-mail system Public Key Infrastructure (PKI) in accordance with Article 3(4) of Commission Regulation (EC) No 794/2004 8, to the following address: agri-state-aids-notifications@ec.europa.eu. For the Commission Phil HOGAN Member of the Commission 8 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, OJ L 140, 30.4.2004, p. 1. 12