7.11.2006 Official Journal of the European Union L 307/159 COMMISSION DECISION of 20 October 2004 on aid granted by Germany Landesbank Hessen-Thiiringen — Girozentrale (notified under document number C(2004) 3931) (Only the German text is authentic) (Text with EEA relevance) (2006/742[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 interested parties to submit their comments pursuant to the provisions cited above (!) and having regard to their comments, Whereas: L PROCEDURE (1) By letters dated 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 housing-promotion loans had been or would be transferred to the liable equity capital of the Landesbanks in North Rhine-Westphalia, Lower Saxony, Schleswig-Holstein, Bavaria, Hamburg and Berlin, i.e. the Westdeutsche Land- esbank, the Norddeutsche Landesbank, the Landesbank Schleswig-Holstein, the Hamburger Landesbank and the Landesbank Berlin. The BdB considered the resulting increase in the equity capital of the relevant Landesbanks distorted competition in their 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 under Article 93(2) of the EC Treaty (now Article 88(2)) against Germany. In February and March 1995 and December 1996, several banks associated themselves individually with the com- plaint lodged by their association. () O] C 72, 26.3.2003, p. 3. ) SRS = By letters dated 6 August 1997 and 30 July 1998, the BdB informed the Commission of two further transfers of assets, to Landesbank Schleswig-Holstein in Schleswig-Holstein and Landesbank Hessen-Thiiringen in Hessen. As regards the latter transaction, the Commission wrote to Germany on 31 July 1998 requesting information. Germany answered by letter dated 2 October 1998 that this was currently still only at the planning stage and that the Commission had no cause for concern either now or at a later stage. The Commission first examined the transfer of assets to Westdeutsche Landesbank (‘WestLB’), but announced that it would review the transfers to the other banks in the light of the findings in that case (). It finally adopted a decision on the WestLB case in 1999, concluding that there was a state aid component equal to the difference between the remuneration paid and the normal market remuneration, which was incompatible with the common market and should be recovered (%). The decision was annulled by the Court of First Instance on 6 March 2003 for not setting out sufficient reasons as regards two of the factors used to calculate the appropriate remuneration, but it was confirmed in all other respects (*). On 20 October 2004, the Commission issued a new decision which took account of the Court’s criticisms. On 1 September 1999, the Commission sent Germany a request for information on the transfers of assets to the other Landesbanks, including Helaba. By letter dated 8 December 1999, Germany submitted information on OJ C 140, 5.5.1998, p. 9 (Decision to initiate proceedings). OJ L 150, 23.6.2000, p. 1; actions challenging that decision were brought by Germany (before the Court of Justice, Case-C 376/99), by North Rhine-Westphalia (before the Court of First Instance, Case T- 233[99) and by WestLB (before the Court of First Instance, Case T- 228(99); the Commission brought proceedings for an infringement of the Treaty (before the Court of Justice, C-209/00). Joined Cases T-228/99 and T-233/99 Westdeutsche Landesbank Girozentraleand Land Nordrhein-Westfalen v Commission [2003] ECR 1I-435.