(1) of the Treaty, and no argument in support of an exception to that prohibiton has been put forward.
V The aid measures provided for in Articles 5 (1) (c), 11 and 12 of Law No 102/90 also apply to agriculture. Those provisions and the Lombardy development plan for the provinces of Sondrio, Bergamo, Brescia and Como indicate that the various aid measures envisaged (either in the form of grants or in the form of interest rate subsidies on loans) for agriculture relate to:
1. investment in the primary production sector;
2. investment in improving the processing and marketing of agricultural products;
3. the advertising of agricultural products;
4. vocational training for farmers;
5. the improvement of wooded areas;
6. research.
In presenting their comments (letter of 16 June 1993) following the initiation of the Article 93 (2) proceedings, the Italian authorities stated that the aid measures relating to agriculture provided for in the Law and the development plan were not measures which were already well defined and specific, but merely represented priorities to be observed (notably, sectors that should receive assistance) when the specific aid envisaged was granted.
The specific aid measures, their precise nature and the details of how they would be implemented would be established at a later stage.
In the same letter, the Italian authorities also gave an assurance that, in providing this specific assistance,
- as regards the aid referred to under 1, the sectoral restrictions and the maximum intensities indicated in Regulation (EEC) No 2328/91 (5), as last amended by Regulation (EEC) No 870/93 (6), and in the Community guidelines for the sugar sector (Commission's letter to the Member States of 1 February 1972, No 936/VI/72) would be complied with,
- as regards the aid referred to under 2, the Community guidelines in force on aid for investments for improving the processing and marketing conditions for agricultural products, the sectoral restrictions provided for in point 2 of the Annex to Commission Decision 90/342/EEC (7) and the maximum rates allowed by the Commission for aid of this type would be complied with,
- as regards the aid referred to under 3, the guidelines on the advertising of agricultural products (8) would be complied with.
The initiation of Article 93 (2) proceedings in respect of agriculture was based on the fact that the measures envisaged for agriculture appeared, in the absence of precise information on aid intensities, the products concerned and compliance with the Community guidelines and sectoral restrictions on state aid for agriculture, to be incompatible with the common market.
However, the Italian authorities have provided additional information on the abovementioned aspects with regard to the measures specified under points 1, 2 and 3; they have given an assurance that they will comply with the Community criteria applicable when aid of this type is examined pursuant to Articles 92 to 93 of the Treaty.
On the basis of the undertakings given by the Italian authorities, therefore, these measures should be regarded as having as their objective the development of the sectors concerned and as being eligible for the derogation provided for in Article 92 (3) of the Treaty.
As far as the vocational training aid for farmers is concerned (point 4); the Commission has always allowed aid of this type to cover 100 % of permissible expenditure. No objections should therefore be raised in respect of this aid.
As regards the aid for research and for the improvement of wooded areas (points 5 and 6), the Italian authorities have not provided the necessary information to enable the Commission to assess these measures under the Community rules governing agriculture.
However, since, on these points too, the specific aid and details of how it will be granted will be established by the national authorities at a later stage, the Commission will decide on such specific measures once they have been notified to it in accordance with Article 93 (3) of the Treaty.
On the basis of these factors, the Commission considers that as regards the aid measures envisaged for investment in the primary production sector, for investment in improving the processing and marketing of agricultural products and for the advertising of agricultural products, it has no objections under the competition rules laid down in the Treaty. In arriving at this position, it took account of the Italian authorities assurance of compliance with:
- the sectoral restrictions and maximum intensities laid down in the Community rules (as set out in Regulation (EEC) No 2328/91 and in the Community guidelines for the sugar sector - letter to the Member States of 1 February 1972, No 936/VI/72) in the case of aid in the primary production sector,
- in the case of the aid for investment relating to processing and marketing, the sectoral restrictions provided for in point 2 of the Annex to Commission Decision 90/342/EEC on the selection criteria to be adopted for investments to be financed pursuant to Council Regulation (EEC) No 866/90 (9), as last amended by Regulation (EEC) No 3577/90 (10), which is used by analogy in applying Article 92 of the Treaty, and the Community framework for aid in the dairy sector (11) and the framework for the sugar and isoglucose sectors (letters to the Member States, No 936/VI/72 of 1 February 1972 and SG(77) D/3832 of 29 March 1977),
- the maximum rate allowed by the Commission in respect of aid for investment in the processing and marketing of agricultural products,
- the guidelines on the advertising of agricultural products.
As regards the measures to improve wooded areas and for carrying out research, the Commission is not at present able to take a decision pursuant to Articles 92 and 93 of the Treaty on such measures, which are presented only in general terms. It will examine the measures once it has been informed on the specific aid that the national authorities propose to adopt; it accordingly requests the Italian Government to notify it, in sufficient time, in accordance with Article 93 (3) of the Treaty, of the plans to grant such specific aid,
HAS ADOPTED THIS DECISION:
