Brussels, 15/11/2001 (Agence Europe) - The European Commission has taken a final negative decision concerning the restructuring plan for companies in difficulties in the protected crops sector (under glass or under shelter) in Sardinia, deciding after an in-depth investigation that the aid is incompatible with common market rules. Italy has two months from the date of notification of the Commission decision to communicate the measures taken to comply with it. The EUR 30 million for the scheme covered financial measures (amortisation and renegotiation of debt) and technical assistance.
The Commission found that not all the criteria for aid for restructuring has been met: the restructuring plan is based on an inadequate definition of companies in difficulty; the scenario of the companies' return to viability is not realistic; there is a real risk of distortion of competition because of how the increase in capacity may impact on prices and therefore on the income and activities of competitors; and the aid is disproportionate in terms of the cost and advantages of restructuring.