Brussels, 22/09/2000 (Agence Europe) - The European Commission has taken two negative decisions relating to:
- French aid to Charentais wine growers: the Commission has decided to oppose aid notified and executed by France to the wine producers of Charente. This negative decision closes the procedure initiated in October 1999. The measure in question aims to encourage wine producers in Charente, used for the production of Cognac, to reconvert into the production of wine from the region of Charente and, to do so, alter the wine stocks. It is explained by the crisis currently affecting the production of Cognac. The Commission considers that such a measure is contrary to the principles of the new common market organisation for wine, one of the aims of which is to prevent an increase in production. It also considers that it is of a nature of creating distortions to competition on the wine markets of countries that are not showing signs of growth.
- Italian aid to compensate for the damage caused by a series of natural disasters: the Commission has decided to oppose an aid scheme aimed at compensating for damage caused in Sardinia by several disasters, including a drought dating back to 1988. Most of these events already being very old, the Commission considers that there is a real risk that the aid should cause a distortion to competition and have similar effects as payments of "operating aid". The measures in question being of a nature to give preference to farmers in difficulties, instead of dealing even-handedly with all farmers affected by the disasters, it is much more than aid to farmers in difficulty, and the Italian authorities have not provided proof of the respect of the rules of reconstruction required in such cases.
