Brussels, 28/01/2009 (Agence Europe) - On Wednesday 28 January, the European Commission adopted a final negative decision concerning state aid granted by France between 1992 and 2002 to fund measures described as "seasonal plans". The public funds in question, which were paid by the Office national interprofessionnel des fruits, des légumes et de l'horticulture (ONIFLHOR) to certain French agricultural economic committees, were to pay for actions to face the situation of crisis on the fruit and vegetable market. The end beneficiaries of the aid were French fruit and vegetable producer organisations from the areas in question. The public funds paid into this aid are believed to be in excess of €330 million.
During its investigation, the Commission noted that these measures were likely to distort competition on the Community market by favouring the circulation of French fruit and vegetable production, to the detriment of those in the other member states. The "seasonal plans" thus constituted a sort of national common market organisation (CMO) superseding the Community CMO. Furthermore, the aid was ruled illegal because it was not notified to the European Commission. The Commission concludes that the aid in question is not entitled to any derogation laid down in the EC Treaty and that it is therefore incompatible with the single market. France must therefore take steps to recover the aid.
Furthermore, the Commission has taken two further decisions on state aid to agriculture: - it has authorised restructuring aid of €3.6 million in favour of the poultry export company Tilly-Sabco (aid in line with provisions of the EU on the restructuring of companies in difficulty); - it has launched a formal investigation into aid granted since 1998 by Portugal to cover the costs of collecting, transporting, handling and destroying by-products of meat from mammals and poultry. (L.C./transl.fl)