
Article 1 
The State aid schemes which Germany is planning to implement under Article 1 Section 19 and Article 4 of the Bill to Modernise the General Conditions for Capital Investments (MoRaKG) are incompatible with the common market.
These State aid schemes may therefore not be implemented.
Article 2 
The State aid scheme which Germany is planning to implement under Article 1 Section 20 of the MoRaKG is compatible with the common market, subject to the conditions set out in Article 3.
Article 3 
The State aid scheme under Article 1 Section 20 of the MoRaKG shall be adjusted so that the following conditions are met:

— the definition of target enterprises shall be limited to small and medium-sized enterprises (SMEs) as defined in Annex I to the General block exemption Regulation,
— the definition of target enterprises shall exclude companies in difficulties and companies from the shipbuilding, coal and steel industry,
— maximum investment tranches shall not exceed EUR 1,5 million per target SME over each period of twelve months and shall be restricted to seed, start-up and expansion financing,
— Germany shall develop a mechanism to ensure that the measure complies with the cumulation and reporting rules set out in Chapter 6 and point 7.1 of the RC Guidelines,
— the purchase of existing shares (replacement capital) in a target SME shall be excluded,
— there shall be no special requirements with regard to the legal form of the target enterprise.
Article 4 
Germany shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.
Article 5 
This Decision is addressed to Federal Republic of Germany.
Done at Brussels, 30 September 2009.
For the Commission
Neelie KROES
Member of the Commission