Brussels, 03/04/2002 (Agence Europe) - On Wednesday the European Commission decided not to authorise Italian aid (under Article 4 of Italian Law 290/99) involving the repayment of loans for farms producing olives or olive oil. The aid had not yet been paid, so no recovery injunction has been requested. The Commission came to the conclusion that the aid measure is simply an operating aid and as such incompatible with the internal market. Italy has always maintained
The European Commission has taken a final negative decision on aids designed to facilitate agricultural credit operations in the olive and olive-oil sector in Italy. The decision concerns aids envisaged by Article 4 of Italian Law No 290/99 which provides for an extension of twelve months of the repayment periods for various types of loans in favour of agricultural holdings engaged in olive and olive-oil production. . As no aid has been paid, no recovery injunction has been asked. Italy has always maintained that the aid was "intended to tackle an explosive social situation characterised by riots, public disorder, road and rail blockades which could qualify as "exceptional occurrence" under the state aid rules". But the Commission notes that "no element has, however, been supplied by Italy" justifying this, seeing it as aid for the very endebted farms in the sector. The Commission is continuing its investigation into other aid measures under Italian Law 290/99.