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            COMMISSION DECISION         

of 2 March 2005         

on the aid scheme implemented by Italy for the reform of the training institutions

(notified under document number C(2005) 429)

(Only the Italian version is authentic)

(Text with EEA relevance)

(2006/225/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof,

Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,

Having regard to the decision C(2003)793fin (1), by which the Commission decided to initiate the procedure laid down in Article 88(2) of the Treaty, in respect of the aid C22/2003 (ex NN168/2002),

Having called on interested parties to submit their comments pursuant to the provisions cited above, and having regard to their comments,

Whereas:

I.   PROCEDURE

II.   DETAILED DESCRIPTION OF THE AID

III.   GROUNDS FOR INITIATING THE PROCEDURE

IV.   COMMENTS FROM INTERESTED PARTIES

V.   COMMENTS FROM ITALY

VI.   ASSESSMENT OF THE AID

VI.1.   Existence of aid under Article 87(1) of the EC Treaty

VI.1.1   Presence of economic activity

VI.1.2   Distortion of competition and effects on trade

VI.2.   Assessment of the legality of the aid

VI.3.   Assessment of the compatibility with Article 87 of the EC Treaty

Grants for payment of past burdens

Concerning sub-programmes “incentive to voluntary departure of personnel” and “improvement of information equipment”                        

Concerning sub-programmes “adaptation of buildings and equipment to compulsory security standard and for improvement of access to the disabled'” and “training of trainers”                        

VII.   CONCLUSIONS

HAS ADOPTED THIS DECISION:

Article 1

1.   Aid granted by Italy, under law 388/2000 implemented by MO 173/2001, vis-à-vis costs related to vocational training activities given to individuals, making part of the public education system, according to the separate accounts maintained, does not fall under the provision of Art.87(1) of the EC Treaty, thus not qualifying as State aid, to the extent that these activities do not qualify as economic activities.

2.   Aid referred to at paragraph 1 above, granted vis-à-vis economic activities, carried out in the framework of the public education system, can be granted an exemption under Article 86(2) of the Treaty.

Article 2

1.   As long as it falls under the scope of Article 87(1) of the EC Treaty, the aid scheme which Italy has implemented on the basis of national law 388/2000, Art.118, par.9, Ministerial Order (Decreto Ministeriale) No 173 of 30 May 2001, and related implementing rules put into force by the Italian Regions, having not been previously notified to the Commission pursuant to Article 88(3) of the EC Treaty, is unlawful.

2.   The aid scheme referred to at paragraph 1 above, is compatible with the common market with respect to sub-programmes “adaptation of buildings and equipment for the improvement of access to disabled” and “training of trainers”.

3.   The aid scheme, referred to at paragraph 1 above, is incompatible with the common market, with respect to sub programmes “grants for payment of past burdens”, “incentive to voluntary departure of personnel”, “improvement of information equipment”, “adaptation of buildings and equipment to compulsory security standard”.

Article 3

1.   Italy shall take all necessary measures to recover from the beneficiaries the aid referred to in Article 2, par.3 and unlawfully made available to the beneficiaries.

2.   Recovery shall be effected without delay and in accordance with the procedures of national law provided that they allow the immediate and effective implementation of the decision.

3.   The recovery shall be completed at the latest at the end of the first fiscal year following the date of notification of the present decision.

4.   The sums to be recovered shall bear interest throughout the period running from the date on which they were first put at the disposal of the beneficiaries until their actual recovery.

5.   The interest shall be calculated in conformity with the provisions laid down in Chapter V of Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty.

6.   Within a time period of two months from the notification of the decision, Italy shall enjoin to all beneficiaries from the aid mentioned in Article 2, par.3 to reimburse the illegal aid and the interests.

Article 4

The Republic of Italy shall inform the Commission, within two months of the date of notification of this Decision, of the measures already taken and planned to comply with it. It will provide this information using the questionnaire attached in Annex 1 of this Decision.

Italy shall submit within the same period of time, all documents giving evidence that the recovery proceedings have been initiated against the beneficiaries of the illegal aid.

Article 5

This Decision is addressed to the Republic of Italy.

Done in Brussels, 2 March 2005.

For the Commission

Neelie KROES            

Member of the Commission

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(1)OJ C110 8.5.2003, p. 8.

(2)  See footnote 1

(3)O.J. L10 of 13.01.2001, p.30

(4)O.J. L10 of 13.01.2001, p.20, and amended by Commission Regulation (EC) No363/2004 of 25 February 2004 (OJ L63 of 28.02.2004,p.20)

(5)  judgment of the Court of 27 September 1988 on the case C263/86, E.C.R. 1988, p.5365, points 9-10; 15-18

(6)  judgment of the Court of 7 December 1993 on the case C109/92, E.C.R. 1993, p.I-6447

(7)  see judgments in joined Cases C-180/98 to C-184/98 Pavlov and others [2000] ECR I-6451, paragraphs 74 and 75.

(8)OJ C281 of 26.09.1996, p.3.

(9)OJ C17 of 19.01.2001, p.4.

(10)  COM(2001) 598fin

(11)  COM(2003) 270 of 21.5.2003         

(12)  COM(2004) 374fin.

(13)  see footnote 5

(14)  see footnote 6

(15)  see footnote 6

(16)  judgment of 25 October 2001, on case C475/99, point 19, ECR 2001, I-09089

(17)  judgment of 10 May 2001, on case C-203/99, ECR 2001, I-3569

(18)  judgments of 12 July 2001 on cases B.S.M. Smits/Stichting Ziekenfonds, C-157/99 [2001] ECR I-5473) and Abdon Vanbraekel, C-368/98 [2001]ECR I-5363

(19)  judgment of 29 September 2000, on case T-55/99,‘            Confederacion Espanola de Transporte de Mercancias            ’, [2000] ECR II-03207.

(20)  see among others judgment of 13.7.1988 on case 102/87 French Rep v/s CCE, ECR 1988, p.04067 and judgment of 24.7.2003 on case C280/00 Altmark, ECR 2003, p.07747, points 77 and 78.

(21)  see footnote 3

(22)  see footnote 4

(23)O.J. L10 of 13.01.2001, p.33

(24)  Guidelines on national regional aid, published in the O.J. C74 of 10.03.1998, p.9.

(25)  Article 87(2) stipulates that the following aid shall be compatible with the common market: (a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; (c) aid granted to the economy of certain areas of the Federal Republic of Germany...

(26)  Article 87(3) declares compatible with the common market b) aid to promote the execution of an important project of common European interest; c)“aid to remedy a serious disturbance in the economy of a Member State”, and d) “aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Community to an extent that is contrary to the common interest”.

(27)O.J. L337 of 13.12.2002, p.3.

(28)  see footnote 23

(29)  see footnote 24

(30)  see footnote 27.

(31)  see footnote 4

(32)  see footnote 27

(33)  see footnote 4

(34)  see footnote 3

(35)JO L83 of 27.3.1999, p.1.

(36)OJ, L 140, 30.4.2004, p.1.

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ANNEX

Information regarding the implementation of the Commission Decision C(2005)429

1.   Total number of beneficiaries and total amount of aid to be recovered

2.   Measures planned and already taken to recover the aid

3.   Information by individual beneficiary

Please provide details for each beneficiary from whom unlawful aid granted under the scheme is to be recovered in the table overleaf.

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(*1)  Amount of aid put at the disposal of the beneficiary (in gross aid equivalents; in prices of ...).

(1)

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