The State aid that Italy plans to grant to Fiat Auto SpA for the plant at Pomigliano d'Arco (Naples) is compatible with the common market under Article 87(3)(c) of the Treaty, up to a maximum intensity of 20,3 % gross grant equivalent of eligible investments amounting to ITL 195,6 billion, discounted at the rate of 11,90 % (base year 1995).
The aid, amounting to not more than ITL 39,6 billion at present values, discounted at the rate of 11,90 % (base year 1995), is accordingly authorised.
Any State aid in addition to the aid referred to in Article 1 that Italy plans to grant to Fiat Pomigliano shall be incompatible with the common market.
Italy shall inform the Commission, within two months of the date of notification of this decision, of the measures it has taken to comply with it.
Italy shall present, in September each year until the project is completed, a report on the state of progress and financial implementation of the project and general compliance with the conditions set out in the notification of the aid in question.
This Decision is addressed to the Italian Republic.
Done at Brussels, 28 July 1999.
For the Commission
Karel van Miert
Member of the Commission
(1) OJ C 113, 24.4.1999, p. 16.
(2) Four of these measures related to motor vehicle production: Cassino-Piedimonte San Germano, Mirafiori Carrozzeria (C 5/99, ex N 728/97), Pomigliano (C 4/99, ex N 727/97) and Rivalta (C 8/99, ex N 834/97), while two concerned engine production: Termoli (C 7/99, ex N 730/97) and Mirafiori Meccanica (C 9/99, ex N 838/97).
(3) See footnote 1.
(4) Italian Official Gazette No 229 of 21 December 1992.
(5) Cassino, Mirafiori Carrozzeria, Pomigliano and Rivalta.
(6) The markets of central Europe (Germany, France, Belgium and the Netherlands) and eastern Europe.
(7) OJ C 123, 18.5.1989, p. 3, and. OJ C 279, 15.9.1997, p. 1.
(8) OJ C 284, 28.10.1995, p. 3.
(9) Model 937 belongs to segment C.
(10) The Alfa 156 model belongs to segment D.
(11) OJ C 70, 6.3.1998, p. 7.
(12) OJ C 409, 30.12.1998, p. 7 and OJ C 384, 12.12.1998, p. 20.
(13) OJ C 240, 31.7.1998, p. 3.
(14) OJ C 74, 10.3.1998, p. 9.
(15) OJ L 308, 29.11.1996, p. 46.
(16) OJ C 37, 11.2.1993, p. 15.