Brussels, 17/06/2004 (Agence Europe) - On Wednesday, the European Commission decided to open an investigation into aid to farming organisations, and aid measures in the form of guarantees, in Sicily. An envelope of some 23 million EUR was allocated.
Sicilian regional law 23/2000 provides for aid to be granted to groupings of fruit and vegetable producers which had been unable to receive all of the aid they may previously have been entitled to, due to a lack of funds at regional level. On the basis of information held by the Commission, it appears that this start-up aid has been channelled into organisations which no longer fulfil the applicable conditions for eligibility. Regional law also provides aid to set up or support Funds to provide guarantees allowing affiliated businesses to receive funding from credit institutions. On the granting of these guarantees, the Commission does not at this stage have enough information to conclude that the conditions for the application of the regime are compatible with EU rules in all cases.
The Italian authorities now have one month to submit comments and explanations, where applicable, to the Commission, whose decision will be published in the Official Journal of the EU. The third parties concerned will also have a month, starting from the date of the publication of the decision, to supply comments, which will be sent to Italy, which will be able to react. Once it has received clarification from the Italian government, third parties and possible also from Rome, the Commission will rule "as soon as possible" on the compatibility of these provisions of regional law with EU State aid rules.