Brussels, 19/10/2011 (Agence Europe) - On Wednesday 19 October, the European Commission brought Italy and France before the Court of Justice for failing to recover aid ruled illegal. It also authorised aid to roll out high-speed broadband services in France.
Italy was brought for having failed to observe, four years after its publication, a decision of the Commission of June 2007 calling upon it to recover aid, which was not notified, to the Region of Sardinia and giving a competitive advantage to shipping companies registered on the island. This aid consisted of loans at highly reduced rates granted since 1988 to companies by the region for the purchase, construction, transformation and repairs of vessels. Under the 2007 decision, Italy should have recovered the difference between the rates at which the loans were made and the market rates in force at the time. This concludes a procedure which has seen many developments since it began in 1996.
For its part, France has been referred for failing to respect a decision of June 2010 calling upon it to recover aid consisting of a preferential interest rate on loans for a total of €2 million made in 2005 by the Region of Nord-Pas-de-Calais and the Communauté d'agglomération du Douaisis to Arbel Fauvet Rail, a manufacturer of railway wagons for industrial use. As in the case of Italy, France was supposed to have recovered the difference between the interest to be paid under the preferential conditions of the aid and that which would have been paid at market rates. In this case, bringing the matter before the Court also concludes a procedure which was interrupted by a ruling and subsequently resumed.
Finally, the Commission authorised aid of around €750 million notified by France in 2010 for the deployment of new-generation ultra fast broadband, mainly using fibre optics, and providing connection speeds of 100 Mbit/s for applications such as administration and online learning, 3D television, teleworking and e-health. The scheme aims ultimately to reduce the digital divide between rural and urban areas and the Commission is satisfied that it is in line with the rules on state aid, as the aid: - will be granted only through regional calls for tender and only in areas in which no commercial deployment of these networks is planned in the near future; - will be limited to the amount which is strictly necessary; - access to the subsidised infrastructure will be unrestricted, non-discriminatory and appropriate price charges will be made. (FG/transl.fl)