Brussels, 17/10/2001 (Agence Europe) - On Wednesday, the European Commission adopted two final decisions on state aid planed by the region of Sicily (Italy) to winegrowers as compensation for unused replanting rights, and aid in the form of subsidised short-term loans in agriculture. In connection with a third scheme involving aid to the fisheries sector under the same regional Sicilian law, the Commission is seeking further information from Italy.
The first measure concerns a grant of ITL 2 billion (around EUR 1 million) to Sicilian winegrowers holding replanting rights which the Italian authorities say could not be used as a result of a drought in 1988-90. The Commission regards the aid as incompatible with the common market, and in particular with the rules of the common organisation of the market in wine, insofar as it provides compensation for rights that are no longer valid and had, in fact, already lapsed when the Sicilian law was published.
The second measures relates to an ITL 10 billion (around EUR 5 million) increase in aid in the form of subsidised short-term loans. In its decision, the Commission maintains that the aid is operating aid and must therefore be regarded as incompatible with the common market as regards agriculture.
The third case involves the refinancing of ITL 3 billion (around EUR 1.5 million) under certain aid schemes for fisheries. These schemes had been approved by the Commission in the past, but when it initiated the procedure, it did not have sufficient information to be able to check for compatibility with the new rules on state aid for fisheries in force at the time of notification. Italy has been given a month to provide the information required to evaluate the aid schemes so a decision can be taken in the light of all the facts. If Italy fails to comply with this request, the Commission will take its decision on the basis of the information to hand.