2004/89/EC: Commision Decision of 9 July 2003 on the aid scheme implemented by Italy for natural disasters up to 31 December 1999 (notified under document number C(2003) 2048)

• Articles: 3

Article 1

1. The aid measures designed to compensate farmers for damage caused by natural disasters provided for by Articles 3, 4 and 5 of Law No 185/92 are compatible with the common market under Article 87(2)(b) of the Treaty.

2. The measures provided for by Article 6 of Law No 185/92 do not constitute aids within the meaning of Article 87(1) of the Treaty.

3. The aid measures provided for by Ministerial Decree No 100460 of 18 March 1993 are compatible with the common market under Article 87(3)(c) of the Treaty.

4. The aids concerning active defence measures against weather events provided for by Article 8 of Law No 185/92 are incompatible with the common market.

5. The aids towards the payment of insurance premiums provided for by Article 9 of Law No 185/92 are compatible with the common market in so far as they comply with point 4.2(c) of working document VI/5934/86 Rev. 2, namely in so far as they are granted up to maximum aid rate of 30 % and are degressive over a maximum 10-year period.

6. The aids towards the payment of insurance premiums granted by the Italian authorities on the basis of Article 9 of Law No 185/92 not complying with point 4.2(c) of working document VI/5934/86 Rev. 2 and not fulfilling any of the conditions entitling farmers to receive a higher rate in accordance with the criteria of point 4.2(a) and 4.2(b) of Commission document VI/5934/86 Rev. 2 are not compatible with the common market.

7. The aids towards the payment of insurance premiums provided for by Presidential Decree No 324 of 17 May 1996 are compatible with the common market in so far as they comply with point 4.2(c) of working document VI/5934/86 Rev. 2, namely in so far as they are granted up to maximum aid rate of 30 %, degressive over a maximum 10-year period.

8. The aids towards the payment of insurance premiums granted by Italy on the basis of Presidential Decree No 324 of 17 May 1996 not complying with point 4.2(c) of working document VI/5934/86 Rev. 2 (maximum aid rate of 30 %, degressive over a maximum 10-year period) and not fulfilling any of the conditions entitling farmers to receive a higher rate in accordance with the criteria of point 4.2(a) and 4.2(b) of Commission document VI/5934/86 Rev. 2 are not compatible with the common market.

Article 2

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

Article 3

This Decision is addressed to the Italian Republic.

Done at Brussels, 9 July 2003.

For the Commission

Franz Fischler

Member of the Commission

(1) OJ C 295, 10.11.1995, p. 5.

(2) "Norme per consentire alle aziende agricole danneggiate da eccezionali avversità naturali l'accesso ai benefici della legge 30 gennaio 1991, n. 31. Rifinanziamento della legge regionale 25 marzo 1986 n. 13 nonché anticipazioni dell' intervento dello Stato per le finalità del D.M. 21 dicembre 1987, N. 524 in applicazione del Regolamento CEE n. 857/84" Gazzetta Ufficiale della Regione siciliana del 16.1.1993. (Provisions to enable agricultural undertakings affected by exceptional weather events to benefit from the aids provided for by Law No 31 of 30 January 1991; Refinancing of regional law No 13 of 25 March 1986 as well as advanced payments on the aids to be provided by the National Government in accordance with Ministerial Decree No 524 of 21 December 1987 implementing (EEC) Regulation No 857/84).

(3) See note 2.

(4) More specifically in its opening, the Commission stated that even though to a certain extent it was possible to "isolate" the assessment of Articles 1 and 6 of Law 6/93 from that of the national legislation on which the law was based, in practice it was not possible to ignore the links existing between the regional text and the national legislation on natural disasters quoted in the regional law of which the latter was at the same time a refinancing and a modification. In fact in the first place, the two national texts provided for additional aid measures which, on the basis of the information available at the time might be cumulated with the regional measures. Secondly, the conditions for benefiting from the regional law were to be found in the national texts. In the absence of any information on these aspects the Commission therefore concluded that on the basis of the information available it was not in a position to verify the conformity of the regional aid measures with the Community criteria on aids to compensate farmers for damage caused by natural disasters.

(5) Decreto Legge 6 dicembre 1990, n. 367 (in Gazzetta Ufficiale - serie generale - No 285 of 6 December 1990), coordinato con la legge di conversione 30 gennaio 1991, n. 31 (in the same Gazzetta Ufficiale on page 3) recante: "Misure urgenti a favore delle aziende agricole e zootecniche danneggiate dalla eccezionale siccità verificatasi nell'annata agraria 1989-1990".

(6) "Interventi per i danni causati dalle eccezionali calamità naturali e da avversità atmosferiche nei mesi di dicembre 1984 e gennaio 1985. Nuova disciplina per la riscossione agevolata dei contributi agricoli di cui alla legge 15 ottobre 1981, n. 590" Italian Official Gazette n. 118 of 21 May 1985 (Measures to compensate damage caused by the exceptional weather events of December 1984 and January 1985. New provisions for easier access to the contributions provided for by Law No 590 of 15 October 1981).

(7) OJ C 295, 10.11.1995.

(8) Commission letter VI/10837 of 19 April 2000.

(9) These values are those contained in Law 185/92 and in the accompanying Circolare; they do not take account of subsequent amendments.

(10) As opposed to "passive protection" represented by insurance schemes.

(11) Community Guidelines for State aid in the agriculture sector (OJ C 28, 1.2.2000, republished in OJ C 232, 12.8.2000).

(12) See Case C-730/79 [1980] ECR. 2671, grounds 11 and 12.

(13) Source: Comext.

(14) Judgment of the Court of Justice of 13 July 1988 in Case 102/87 French Republic v Commission of the European Communities ECR [1988] 4067.

(15) OJ C 232, 12.8.2000, p. 19.

(16) OJ L 83, 27.3.1999, p. 1.

(17) Working document VI/5934/86, 10.11.1986.

(18) See for example aids N 877/95 and N 435/95.

(19) Based on the Commission's working paper: Rules governing the grant of national aids in the event of damage to agricultural production or the means of agricultural production and national aids involving the defraying of a proportion of the insurance premium covering such risks.

(20) Working document VI/5934/86, 10.11.1986.

(21) OJ L 218, 6.8.1991, p. 1.

(22) OJ L 142, 2.6.1997, p. 1.

(23) OJ L 128, 19.5.1975, p. 1.

(24) See Judgment of the Court of First Instance of 8 June 1995 in Case T-459/93 (Siemens SA v Commission of the European Communities 1995 ECR -1675).

(25) OJ L 142, 2.6.1997, p. 1.

(26) Letter from the Commission to Member States of 21 March 1989 (SG(89) D/3659) where it is stated that the 80 %, 50 % and 30 % percentages can be exceeded in areas of high climatic risk in especially justified cases.

(27) As explained by the Italian authorities in their letter of 20 November 2000, the main difference between the three types of insurance contract above lies in the fact that contracts under (a) concern damage to individual crops caused by individual weather events; insurance contracts under (b) concern damage to individual crops or facilities caused by a plurality of adverse events while insurance contracts under (c) concern damage to more than one crop caused by a plurality of events.

(28) The Finance Act for 2001 contains an Article which further amends the Italian legislation on subsidised insurance to bring it into line with the new Community Guidelines for State aid in the agriculture sector. The latter is not covered by this Decision.

(29) See paragraph 15.