L 307/58 Official Journal of the European Union 7.11.2006 COMMISSION DECISION of 20 October 2004 on State Aid implemented by Germany for Norddeutsche Landesbank — Girozentrale (notified under document number C(2004) 3926) (Only the German text is authentic) (Text with EEA relevance) (2006/738/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on the Member State and other interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments, Whereas: L PROCEDURE (1) The subject of these proceedings is the transfer of three Land trust agencies (Landestreuhandstellen (LTS’)) to Nord- deutsche Landesbank — Girozentrale (NordLB) by the Land of Lower Saxony. There are a further six cases in which proceedings have been initiated against Germany in connection with transfers of assets to Landesbanks, and in particular to Westdeutsche Landesbank — Girozentrale (‘WestLB). (2) By letter of 12 January 1993, the Commission asked Germany for information on a capital increase in WestLB resulting from the incorporation of the housing organisa- tion Wohnungsbauforderanstalt (WfA’) and on similar increases in the own funds of the Landesbanks of other Lander. It also asked which Landesbanks had benefited from a transfer of publicly owned promotion-related assets and for information on the reasons for those transactions. (3)  Germany replied by letters dated 16 March and 17 Septem- ber 1993. The Commission requested further information by letters of 10 November and 13 December 1993, to which Germany replied by letter of 8 March 1994. () O] C 81, 4.4.2003, p. 2. (4) By letters of 31 May and 21 December 1994, the Bundesverband deutscher Banken e.V. (BdB’), an association representing private banks established in Germany, informed the Commission among other things that, under a law adopted on 17 December 1991, the Land of Lower Saxony’s shares in assets used to promote housing, agriculture, trade and industry had been transferred to NordLB with effect from 31 December 1991. This increased the own funds at NordLB’s disposal and, in the BdB's view, distorted competition in its favour since the parties had not agreed remuneration consistent with the market-economy investor principle. In its second letter, the BdB accordingly lodged a formal complaint and called on the Commission to initiate proceedings against Germany under Article 93(2) of the EC Treaty (now Article 88(2)). In February and March 1995 and December 1996 several banks associated themselves individually with the complaint lodged by the BdB. (5)  The Commission investigated first the transfer of assets to WestLB but announced that it would examine the transfers to the other Landesbanks, including NordLB, in the light of the findings in that case. (% By Decision 2000/392/EC (%), it finally declared in 1999 that the aid measure (the difference between the remuneration paid and the normal market remuneration) was incompatible with the common market and ordered that the aid should be recovered. This decision was annulled by the Court of First Instance of the European Communities on 6 March 2003 as insufficient reasons had been given for two of the factors used to calculate the appropriate remuneration, but it was confirmed in all other respects. On 20 October 2004 the Commission, having become aware of an understanding between the complai- nant, WestLB and the Land of North-Rhine Westphalia, issued a new decision which took account of the Court’s criticisms. (6) On 1 September 1999, following Decision 2000/392/EC, the Commission sent Germany a request for information on the transfers of assets to the other Landesbanks. By letter () 0] C 140, 5.5.1998, p. 9. () OJ L 150, 23.6.2000, p. 1; actions challenging that decision have been brought by Germany (Case C-376/99), by North Rhine- Westphalia (Case T-233/99) and by WestLB (Case T-228/99). The Commission has also brought proceedings for infringement of the Treaty (Case C-209/00).