Competition and trade law: German state aid unlawful

United Kingdom
The Commission has decided that Germany's plans to extend investment allowance and special depreciation schemes to West Berlin amounts to unlawful State aid.
However, the extensions will be compatible with the common market if certain conditions are met. These include that:

  • investment allowances are restricted to small firms outside assisted areas;
  • the special depreciations are limited to equipment and construction after 31 December 1995;
  • the special depreciations are limited to investment in assisted areas; and
  • Germany report annually to the Commission on the schemes' application.