Annex 3: Responses to targeted consultation question 6

• Author: Fabien Roques - Helene Laroche
• Pages: 85-88

Final rep ort

85

Annex 3: Responses to targeted consu ltation qu e stion

6

Tabl e 14: Respon ses t o qu estion 6

“ To w hat ext en t a re com pan ies i n t he sect or com pet ing wi th un der tak ing s ba sed in oth er

EU Mem ber St ates? How sign ificant is t he r isk of comp etit ion distort ions in th e sect or i f

not all of t he relevant Mem ber St ates were to grant compen sat ion for indirect costs or

if t hey do so t o a dif fere nt deg ree?”

Secto r

Su mm ary of th e r espo nse s

05 .10 - Mi ning of

har d co al

N/ A

05 .20 - Mi ning of

lignit e

N/ A

07 .10 - Mi ning of

ir on or es

Intra-EU tra de ha s a si gnif icant sha re of th e to tal tra ded v alue s in NACE

07 .10. Most in terv iewe es re port ed t hat th eir main com pet itor s we re

out side of the EU, and most ly in Br azil. To t he e xten t t hat not gr anti ng

com pensa tion for in direc t cos ts or gr anti ng d iffe rent lev els o f

com pensa tion wi ll sig nifi cant ly i mpact t he costs tha t comp anies face in

dif fere nt Membe r St ates, th ere is a risk tha t co mpet iti on i s dist ort ed b y

such un equal tr eatm ent .

07 .29 - Mi ning of

ot her non- fer rous

m etal ores

Intra-EU tra de ha s a si gnif icant sha re of th e to tal tra ded v alue s.

Becau se da ta i s at th e NACE an d no t t he PRODCOM l evel, it is n ot

poss ible to a naly se po tent ial trade d isto rti ons f or p art icular no n-fe rrou s

m etal ores. Most int erv iewee s rep ort ed t hat their mai n com pet ito rs w ere

out side of t he EU, and most ly in Sou th Amer ica. But diff erent lev els o f

com pensa tion wi ll li kely only fu rth er i ncrea se th is pr ice dif feren tial and

pot ent ially dis tort com pet iti on.

08 .91 - Mi ning of

chem ical and

fer til iser min erals

The EU fer tili zer m ark et has a hig h deg ree of in tra -EU com peti tion wit h

m ore t han 20 prod ucers . A l evel play ing field (i n the EU) is esse nti al.

Ther efor e t he ba sis for the comp ensat ion of i ndir ect costs shoul d be the

sam e wi thi n th e EU.

08 .93 - Ex tra ction

of salt

N/ A

08 .99 - Ot her

mini ng an d

quarr ying n. e.c.

Sam e as 07. 29 - Min ing of ot her non -ferr ous m eta l or es

10 .41 -

Manu fact ure of o ils

and fat s

N/ A

10 .62 -

Manu fact ure of

sta rches and

sta rch prod ucts

I f no t al l rel evan t Mem ber Sta tes g rant com pen satio n, t he risk of

com pet itio n di stor tion s wit hin th e sect or is con sider able. As t he ener gy

cost s ar e con sider able in r elat ion t o op erat ing cost s an d t he sec tor is

un able to p ass t hese costs to th eir custo mers , an y com pan y w ithi n t he

sect or w hich rece ives Stat e Aid wou ld ou tcom pet e t he com pan ies t hat

wo uld not recei ve su ch ai d.

10 .81 -

Manu fact ure of

sugar

I n gen eral , du e t o consol idat ion of t he se ctor , t here is f ull comp etit ion

ov er t he EU 28. The se ctor is a lso ex posed to compet iti on on th e wo rld

m arket . A s pot ent ial f or i ndir ect ETS co st co mpen sati on d epend s on t he

ene rgy mix of the Memb er S tat e used for gr id el ectr icity pr oduct ion, a

nat iona l, sp ecifi c im plem enta tion in our under stan ding wou ld b e a

sui tabl e app roach to min imi se di stor tion of comp etit ion.

11 .06 -

Manu fact ure of

malt

No comp etit ion dist orti on i s exp ected at EU lev el.

13 .10 -

Prepara tion and

spinni ng o f te xti le

fibres

N/ A