1999/605/EC: Commission Decision of 11 May 1999 on State aid which the Italian authorities have implemented in favour of the sugar sector (notified under document number C(1999) 1363) (Only the Italian version is authentic)

• Articles: 4

Article 1

1. The following aid which the Italian authorities granted through the public company, RIBS SpA, is incompatible with the common market:

(a) aid to Nusam SpA in the form of stakes in its capital of ITL 5 billlion (12 April 1988) and ITL 2,5 billion (2 February 1990);

(b) aid to Sadam Abruzzo SpA in the form of public sureties for guaranteed sums of ITL 2 billion (12 September 1989) and ITL 11 billion (2 February 1990);

(c) aid provided for in the CIPE decision of 26 July 1990: downgrading and deferment of a credit of ITL 17,504 billion, to the advantage of Sadam Abruzzo S.p.A. and of the other creditors of Nusam S.p.A., as well as the reduction of the purchase price of the Celano factory, along with the advantages associated with shouldering ITL 15 billion in favour of Sadam Abruzzo SpA;

(d) aid to Zuccherificio Castiglionese S.p.A. in the form of a public surety for a guaranteed sum of ITL 41 billion (2 August 1991).

2. The following aid granted by the Italian authorities through the public company RIBS SpA, on 26 July 1990, to Sadam Abruzzo SpA is incompatible with the common market to the extent to which its value, expressed in gross grant-equivalent, exceeds the sum of ITL 15 billion:

(a) aid in the form of a stake in the capital for a sum of ITL 8 billion tile and

(b) aid in the form of a loan at a subsidised rate for a sum of ITL 11 billion lire.

3. The following aid granted by the Italian authorities through the public company, RIBS SpA on 16 April 1992 to Zuccherificio Castiglionese SpA is incompatible with the common market to the extent to which its value, expressed in gross grant-equivalent, exceeds the sum of ITL 5,5 billion:

(a) aid in the form of an extension of the redemption term for a stake of ITL 12 billion for an additional period of ten years;

(b) aid in the form of the conversion of a credit of ITL 20 billion lire into capital stock;

(c) aid in the form of the renegotiation of a debt of ITL 4 billion;

(d) aid in the form of a stake in capital for a sum of ITL 10 billion;

(e) aid in the form of a loan at a subsidised rate for a sum of ITL 20 billion.

Article 2

1. The Italian authorities shall take all the measures necessary to recover from the recipients the aid referred to in Article 1 and unlawfully made available to them, within two months of notification of this Decision.

2. Recovery shall be effected in accordance with the procedures of Italian law. The sums to be recovered shall bear interest from the date on which they were made available to the recipients until their actual recovery. Interest shall be calculated on the basis of the reference rate used for calculating the grant-equivalent of regional aids.

Article 3

1. The Italian authorities shall inform the Commission, within two months following notification of this Decision, of the procedures used to calculate the grant-equivalent of aid to be recovered.

2. The Italian authorities shall inform the Commission, within two months following notification of this Decision, of the measures taken to comply with it.

Article 4

This Decision is addressed to the Italian Republic.

Done at Brussels, 11 May 1999.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ C 88, 19.3.1997, p. 4.

(2) See footnote 1.

(3) Possible only if the debtor is able to cover all its preferential credits and 40 % of unsecured credits.

(4) OJ L 177, 1.7.1981, p. 4.

(5) OJ L 159, 3.6.1998, p. 38.

(6) OJ L 126, 9.5.1989, p. 1.

(7) OJ L 34, 13.2.1996, p. 16.

(8) OJ C 368, 23.12.1994.

(9) OJ C 283, 19.9.1997, p. 2.

(10) ECR [1994] I-4635.

(11) ECR [1994] I-4635, point 24 of the judgment.

(12) ECR [1994] I-4635, point 25 of the judgment.

(13) These figures refer to intervention in the two sugar factories which were the property of Nusam at the time (Celano and Strongoli).

(14) See footnote 13.

(15) The remainder of this credit (ITL 17504 million) was lost following the declaration of bankruptcy by Nusam.

(16) ECR [1995] II-1971.

(17) ECR [1995] II-1971, point 129 of the judgment.

(18) The reference rate in Italy was 14,66 % in 1990 and 14,4 % in 1992.

(19) ECR [1995] II-1675.

(20) Commission letter to the Member States dated 5 April 1989 and 12 October 1989.

(21) OJ C 307, 13.11.1993, p. 3.

(22) Bulletin 9-1984.

(23) OJ C 74, 10.3.1998, p. 9.

(24) OJ L 51, 23.2.1977, p. 1.

(25) OJ L 91, 6.4.1990, p. 1.

(26) OJ L 142, 2.6.1997, p. 22.

(27) OJ C 29, 2.2.1996, p. 4.

(28) See footnote 24.

(29) ECR [1980] 2671.

(30) ECR [1973] 813.

(31) ECR [1987] 901.

(32) ECR [1990] I-3437.