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            COMMISSION DECISION         

of 6 April 2005         

on the aid scheme which Italy is planning to implement for ship financing

(notified under document number C(2005) 844)

(Only the Italian text is authentic)

(Text with EEA relevance)

(2006/599/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 called on interested parties to submit their comments pursuant to the provisions cited above,

Whereas:

I.   PROCEDURE

II.   DESCRIPTION OF THE SCHEME

III.   GROUNDS FOR INITIATING THE PROCEDURE

IV.   COMMENTS FROM ITALY

V.   ASSESSMENT

1.   Existence of State aid within a meaning of Article 87(1) of the Treaty

(a)   Economic advantage

(i)   Inadequacy of the proposed premium

(ii)   Lack of risk differentiation

(iii)   Coverage of administrative costs

(iv)   Conclusion

(b)   Use of State resources and selectivity of the measure

(c)   Distortion of competition and effect on intra-Community trade

2.   Compatibility of the aid

VI.   CONCLUSION

HAS ADOPTED THIS DECISION:

Article 1

The State aid for ship financing which Italy is planning to implement on the basis of Article 5 of Law No 261 of 31 July 1997, as amended by Article 1 of Law No 413 of 30 November 1998 and supplemented by the Decree of the Minister for the Treasury, the Budget and Economic Planning dated 14 December 2000, is incompatible with the common market.

The aid may accordingly not be implemented.

Article 2

Italy shall inform the Commission, within two months of 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, 6 April 2005.

For the Commission

Neelie KROES            

Member of the Commission

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(1)OJ C 145, 21.6.2003, p. 48.

(2)OJ C 71, 11.3.2000, p. 14.

(3)  See footnote 2.

(4)  Points 2.1.1 and 2.1.2 of the Notice.

(5)OJ C 62, 11.3.2004, p. 2.

(6)  It should be pointed out that the market for shipbuilding appears to be global, and the market for finance to shipbuilding appears to be at least pan-European. Therefore, important lessons could be learnt from the German case irrespective of the fact that the schemes there assessed did not concern Italy.

(7)OJ L 202, 18.7.1998, p. 1.

(8)  Framework on State Aid to Shipbuilding (2003/C 317/06) (OJ C 317, 30.12.2003, p. 11).

(9)  See judgment of the Court of First Instance in Case T-176/01 Ferriere Nord SpA v Commission of the European Communities [2004] ECR, 18 November 2004, not yet reported, in particular paragraphs 134 to 140.

(10)  See also Case T-136/01 Ferriere Nord, paragraphs 74 to 82.

(11)  See Article 2(2) of the Shipbuilding Regulation and paragraph 11 of the Shipbuilding Framework.

(12)  See Article 3(1) of the Shipbuilding Regulation.

(13)  See Article 3(4) of the Shipbuilding Regulation.

(14)  See paragraph 23 of the Shipbuilding Framework, which refers to the same OECD provisions as the decision initiating proceedings.

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