94/813/EC: Commission Decision of 27 July 1994 concerning aid to French pig farmers - Stabiporc adjustment fund (Only the French text is authentic)

• Articles: 6

Article 1

The aid granted to pig producers as part of the advances made under the group membership of the Caisse Professionelle de Régulation Porcine (Stabiporc regulatory fund) and the agreement concerning the relaunch of the said fund for the period 1993-96 is illegal, having been granted in breach of Article 93 (3) of the Treaty. This aid is also incompatible with the common market within the meaning of Article 92 of the treaty.

The aid referred to in paragraph 1 covers:

- the amounts resulting from the difference between the interest rate applied to advances paid to producer groups Stabiporc (the Pibor 12-month rate plus 0.5 %) and the interest rate at which those groups could have obtained them through Stabiporc from financial institutions under normal market conditions, the latter rate to be determined on the basis of the interest rates offered to companies for variable-rate loans of an initial duration of more than two years, and

- advances not repaid by pig-farmers' producer groups and borne by Ofival.

Article 2

France shall abolish the aid referred to in Article 1:

- by fixing the interest rate on advances at the normal market referred to in the first indent of the second paragraph of Article 1,

- by laying down that Ofival shall, in the event of non-payment or late payment to Stabiporc, deduct those amounts (capital and interest) from any sums to be paid by Ofival to producer groups or members of those groups under other measures,

- by laying down that interest for late payment shall be payable on amounts recovered by Ofival in accordance with the previous indent.

Article 3

France shall demand the recovery and repayment of aid already paid, referred to in Article 1, within three months of the date of this Decision.

The aid shall be recovered in accordance with the procedures and provisions of national law, and in particular those relating to interest on overdue payments owed to the State. Interest on the sums in question shall start to run from the date on which the aid was granted.

Article 4

France shall inform the Commission within three months of the date of notification of this Decision of the measures taken to comply with Articles 2 and 3.

Article 5

This Decision is addressed to the French Republic.

Done at Brussels, 27 July 1994.

For the Commission

René STEICHEN

Member of the Commission

(1) OJ No L 282, 1. 11. 1975, p. 1.

(2) OJ No L 129, 11. 5. 1989, p. 12.

(3) OJ No C 107, 15. 4. 1994, p. 2.

(4) [1973] ECR 813.

(5) [1987] ECR 901.

(6) [1990] ECR I-3437.

Article 92

(3) of the Treaty.

The measure is not intended to promote the execution of an important project of common European interest within the meaning of Article 92 (3) (b) of the Treaty since, given the impact it could have on trade, the aid goes against the common interest.

Neither is it a measure intended to remedy a serious disturbance in the economy of the Member State concerned within the meaning of that same paragraph.

With regard to the derogations provided for in Article 92 (3) (a) and (c) of the Treaty concerning aid to promote or facilitate the economic development of regions and certain activities referred to in the abovementioned indent (c), the measure, being operating aid, cannot bring about a long-term improvement in the conditions of the recipient economic sector, since, when payment ceases, the sector will be in the same structural situation as before the State measure was applied.

It is a type of aid which the Commission has always in principle opposed, on the ground that it is not linked to conditions making it eligible for one of the derogations provided for in Article 92 (3) (a) and (c) of the Treaty.

(4) Even if a derogation under Article 92 (3) of the Treaty were possible for the aid in question, the fact that the measure in question goes against the common organization of the market, as stated in point V.8 above, precludes the application of such a derogation.

(5) The aid in question must therefore be considered incompatible with the common market within the meaning of Article 92 of the Treaty.

(6) This Decision shall not prejudice any inferences the Commission might draw as regards the financing of the common agricultural policy from the European Agricultural Guidance and Guarantee Fund (EAGGF).

(7) The measure, adopted by a mninisterial decision of 12 May 1993 and applied without awaiting the Commission's final decision, is illegal under Article 93 (3) of the Treaty. The French authorities notified the measure only on 19 April 1993 in response to the Commission's request of 9 March 1993.

(8) Where aid is incompatible with the common market, the Commission, in accordance with judgements of the Court of Justice, in particular the judgment handed down on 12 July 1973 in Case 70/72, Commission v. Germany (4), and confirmed by the judgments of 24 February 1987 and 20 September 1990, in Cases 310/85, Deufil GmbH v. Commission (5) and C-85, Commission v. Germany (6) respectively, must demand that Member States recover from the beneficiaries any aid granted illegally.

In view of the above, the aid in question must be repaid.

Repayment must be made in accordance with the procedures and provisions of French law, in particular those concerning interest on overdue payments owed to the State, the interest being calculated from the day the aid in question was paid.

Repayment is necessary in order to restore the previous situation by abolishing all the financial advantages enjoyed by the beneficiaries of the illegal aid since the date on which it was paid. It is all the more necessary given the sensitive market situation and in view of the decision taken by the Commission on 19 August 1988 (see final paragraph of point II),

HAS ADOPTED THIS DECISION: