L 88/50 Official Journal of the European Union 25.3.2006 COMMISSION DECISION of 16 November 2004 on aid granted by Germany to grain brandy distilleries (notified under document number C(2004) 3953) (Only the German text is authentic) (Text with EEA relevance) (2006/240[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, 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, () The Commission first asked Germany for further infor- mation about the criticised amendments on 3 January 2001. Germany replied by letter dated 14 February to the effect that the aid measures in question had already been notified to the Commission in 1976 and that the new Law merely served to improve the existing mechanism. On 16 March the Commission addressed a further set of questions to Germany, which then asked for an extension of the time limit; this was granted by the Commission by letter dated 9 April. Having called on interested parties to submit their comments 4 On 24 April Germany’s reply reached the Commission, pursuant to the provisions cited above and having regard to which on 19 November again communicated its initial their comments (1), conclusions and comments. By letter dated 19 December Germany confirmed its explanations of 14 February and gave a renewed assurance that the aid in question complied with Community law. Whereas: I. PROCEDURE . (5) By letter dated 22 February 2002 the Commission () By letFer dated 22 NOYembef 2000, six German requested Germany, under Article 17(2) of Council Regu- 1r1dustr1.al producers . Wthh. are .members O.f the lation (EC) No 659/1999 of 22 March 1999 laying down Federation of Industrial Grain Distilleries submitted a detailed rules for the application of Article 93 of the EC complaint to .tl'.le Commission about the amendment of Treaty (%), to comment and submit appropriate proposals Germany’s Spirits Monopoly I:aw 0fy2 May 1976 by the on how the legislation on aid for grain distilleries could Budget Consolidation Law (HsanG) of 22 December be made consistent with Article 87(1) of the EC Treaty. 1999 (3. On 19 March Germany informed the Commission in writing that it regarded such measures as unnecessary, because it could not endorse the Commission’s conclusions. This applied in particular to the conclusion (2)  The complainants wanted it to be established that by that grain brandy Evzs an in%ustn'al not an agricultural amending the Spirits Monopoly Law () the German product legislator had introduced a scheme which infringes ' Article 87 of the EC Treaty: it treats industrial and agri- cultural grain distilleries - which up to then had been equally entitled to aid - unfairly, since only the agri- cultural producers would still be eligible for aid. They claim that the new scheme gives the agricultural grain 6) By decision of 19 June 2002 the Commission proposed a brandy distilleries an indisputable advantage in the form of aid that is incompatible with the Community compe- tition rules. () OJ C 269, 8.11.2003, p. 2. (3 Bundesgesetzblatt Jahrgang 1999 Teil I Nr. 58, published in Bonn number of appropriate measures to Germany for revising the German Law on Aid to Grain Distilleries. By letters dated 19 and 23 July Germany informed the Commission that it was rejecting the proposal and was therefore not prepared to carry out the appropriate measures within the time limits set. on 28 December 1999. The Budget Consolidation Law introduced a general reform of the German spirits monopoly. It came into force on 1 October 2000. (}) Branntweinmonopolgesetz of 2 May 1976. () O] L 83, 27.3.1999, p. 1, as amended by the 2003 Act of Accession.