Report on the application of the special arrangements concerning the AIEM tax applicable in the Canary Islands

Summary:

Report presented on 28 August 2008 by the European Commission analysing the economic and social aspects of the application of the AIEM tax arrangements in the Canary Islands.

Further information:

By Council Decision 2002/546/EC, Spain was authorised from 1 January 2002 until 31 December 2011 to exempt or reduce partially from the AIEM tax ("Arbitrio sobre las Importaciones y Entregas de Mercancias en las islas Canarias") some products produced locally in the Canary Islands.

The special measures were introduced to counter disadvantages faced by the Canary Islands and thereby allowing the economy of the islands to develop. They were especially targeted at strengthening domestic industry by increasing its competitive position, which is disadvantaged because of the location, structure and size of the market.

The purpose of this report is to check the impact of the measures taken under Decision 2002/546/EC and to assess their contribution to the promotion or maintenance of local economic activities with account being taken of the handicaps faced by the region.