Brussels, 01/12/2004 (Agence Europe) - On Wednesday, the European Commission decided to authorise Italy to pay State aid of 169 million EUR to cover the costs of destroying specified risk material (SRM: a measure to fight BSE). The green light was also given to income aid to Italian producers of bovine meat, after the latest BSE crisis. Both aid measures were granted by Italy in 2001, without the prior agreement of the Commission.
Destruction of SRM: The Commission believes that the measures funded are in line with Community legislation. The aid, which can cover up to 100% of costs, was granted to companies responsible for the disposal, destruction and storage of animal waste from Italy. The economic benefit is fully passed on to farmers.
Income aid: The income aid for beef producers, which was granted via suspension and extension of tax deadlines and social security obligations, "is authorised" under article 87 (paragraph 2, point b) of the Treaty as aid "to make good the damage caused by natural disasters or exceptional circumstances", explained the Commission, which verified that there had been no overcompensation in relation to the losses suffered in 2001. This aid is 103.25 EUR per holding. The Italian authorities demonstrated that the aid did not exceed 3,000 EUR per beneficiary over a period of three years, which allowed the Commission to agree to it under so-called "de minimis" aid.