1. The measure implemented by France consisting of a supplement to national aid for improving the vine population of wine-growing holdings in the Cognac region for the 1998/1999 and 1999/2000 wine years is an unlawful aid incompatible with Articles 87, 88 and 89 of the Treaty and does not qualify for the derogation provided for in Article 87(3) of the Treaty.
2. The accompanying measure providing for technical support to producers is incompatible with Articles 87, 88 and 89 of the Treaty and does not qualify for the derogation provided for in Article 87(3) of the Treaty.
France shall be required to cancel the aid schemes referred to in Article 1.
France shall take the measures necessary to recover the aid granted to beneficiaries under the schemes referred to in Article 1.
France shall inform the Commission, within two months of notification of this Decision, of the measures that it has taken to comply therewith.
This Decision is addressed to the French Republic.
Done at Brussels, 20 September 2000.
For the Commission
Franz Fischler
Member of the Commission
(1) OJ C 359, 11.12.1999, p. 7.
(2) JORF, 11.4.1999 and JORF, 23.4.2000.
(3) Arriloba B, Cabernet franc N, Cabernet Sauvignon N, Chardonnay B, Chasan B, Chemin B, Cot N, white-juiced Gamay N, Merlot N and Sauvignon B.
(4) OJ L 84, 27.3.1987.
(5) OJ L 198, 26.7.1988.
(6) OJ L 264, 12.9.1989.
(7) OJ L 179, 14.7.1999.
(8) OJ L 143, 16.6.2000.
(9) State aid N 327/98. Letter to France SG(98) D/6737 of 4 August 1998.
(10) OJ L 83, 27.3.1999, p. 1.
(11) The latter figure is different from the figure provided by the French authorities in their letter of 13 December 1999.
(12) Report No 70, of 2 February 2000.
(13) Judgment of the Court of 26 June 1979 in Case 177/78 Pigs and Bacon Commission v McCarren and Company Limited [1979]ECR 2161.
(14) ECR 1973, p. 611.
(15) ECR 1973, p. 1471.
(16) ECR 1977, p. 595.
(17) ECR 1991, p. I-5505.
(18) OJ L 273, 9.9.1997.
