Brussels, 13/05/2003 (Agence Europe) - The Ecofin Council has asked the Committee of Permanent Representatives to "examine the Italian milk quota issue under the appropriate framework", annouced Council President Nikos Christodoulakis on Tuesday evening. The Ministers agreed to "find a solution to the Italian problem" of milk quotas, and thus to the "tax package" by the meeting of 3 June, said a high-ranking Commission official. "All the States have agreed to find a solution under this Council Presidency" (in other words, before the Italian Presidency), said the same source.
Member States' representatives were thus obliged to look at the request by Italy, which wanted to spread over thirty years, without interest, fines owed to the State by Italian producers for exceeding milk quotas during the period 1995-2001, a total of 648 million Euros. Italy is making its vote for the "tax package" conditional on agreement to this request, which must be approved unanimously in Council under article 88 (2) of the Treaty allowing Council to approve State aid. The attitude of the Commission, which could decide to take this kind of decision to the Court of Justice, will also be seen as part of the "solution" to be found by the permanent representatives, indicated a Community source.
Nikos Christodoulakis indicated that the Member States may, if they wish, negotiate agreements with Switzerland on double company taxation. In other words, the Council has not ruled out the possibility of Italy and Portugal negotiating directly with Berne to allow Swiss companies established in their territory to benefit from the "parent-subsidiary" and "interest and royalties" directives on double taxation. The Commission's interpretation seems somewhat qualified. It says that the agreement concluded last March with Switzerland is "definitive". However, this agreement only provides for exemptions from the "parent-subsidiary" and "interest and royalty" directives for Spain.
A Council statement indicates that "we will not re-open the tax package, there will be no new Council debate on article 15, no reservations. This does not prevent Italy, Portugal or any other State from pursuing discussions with Switzerland". Italian Minister Gulio Tremonti said only that "significant progress" had been made, without commenting on the contents of the statement.