# CE2004088EN.01049701.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/497 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/497

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(2004/C 88 E/0509)

WRITTEN QUESTION E-0352/04

by Roberta Angelilli (UEN) to the Commission

(12 February 2004)

Subject:   The Parmalat case and its repercussions on milk and cheese production in Lazio

Subject:

The consequences of the notorious Parmalat scandal have been felt particularly acutely by producers in Lazio, since the company had purchased Rome's central dairy and in practice controlled 70 % of the Lazio market. This had serious repercussions on the entire national fresh milk sector, which is largely centred in this region. Recent statistics show that Lazio is Italy's fifth largest producer of fresh milk, with 3 3 % of national production, and the leading consumer, whereas in the rest of Italy people prefer to buy long-life or microfiltered milk.

Dairy farms in Lazio have thus been damaged in two ways, both by the risks of the current crisis affecting Rome's central dairy and the sums Parmalat owes to producers, whose milk reaches the factories via associations and co-operatives.

The Italian Ministry for Agricultural Policy has already introduced a system of incentives for drawing up ‘sectoral contracts’ designed to support dairy farmers and encourage them to rationalise the internal system of each food industry sector, in order to increase efficiency and production. This will make it possible to remedy nation-wide some of the damage caused by the Parmalat crisis.

In view of the need to take specific action in the Lazio region for the reasons set out above, and bearing in mind that the European Union has full competence in the area of regional agricultural policies, can the Commission say:

| 1. | whether the EU has any progammes to tackle crises and provide incentives to be implemented at regional level; |
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1.

whether the EU has any progammes to tackle crises and provide incentives to be implemented at regional level;

| 2. | whether the Region of Lazio may benefit from a fund to support farms in such cases; |
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2.

whether the Region of Lazio may benefit from a fund to support farms in such cases;

| 3. | if not, whether the Commission can provide information as to how it may benefit from other forms of funding already available in the sector, to be used for such purposes? |
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3.

if not, whether the Commission can provide information as to how it may benefit from other forms of funding already available in the sector, to be used for such purposes?

Answer given by Mr Fischler on behalf of the Commission

(6 April 2004)

(6 April 2004)

In Lazio the European Agricultural Guidance and Guarantee Fund (EAGGF) helps finance the Lazio 2000/2006 rural development plan and the Leader+ programme. Neither includes any specific measures for crisis situations in agriculture, though they contain a package of assistance measure to promote agricultural holding development, processing and marketing of produce, and rural development. Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (1) therefore does not contain any suitable instrument for providing immediate assistance to small dairy farmers stricken by the Parmalat crisis.

1

It is the Italian national and regional authorities that are responsible for delivering Community-financed aid under the above programmes. The Commission monitors the programmes but is not responsible for managing the various measures on the ground.

The Lazio Assesorato all'Agricoltura as managing authority for the programme will be able to provide data on the various recipients.

In reply to the Honourable Member's third question, the common market organisation provides market support instruments such as the quota arrangements, export refunds, measures for the disposal of butter and milk powder, and intervention. But none of these instruments can be used specifically to help towards a solution.

Under Articles 87 and 88 of the EC Treaty the Commission is responsible for authorising State aid by Italy to the farming sector. Dairy farmers could possibly be helped under national or regional aid schemes already authorised by us or new schemes notified under Article 88 or exempt under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products (2).

2

When State aid in agriculture is notified we examine its compatibility with the common market in the light of the above Regulation and the Community Guidelines for State aid in the agriculture sector. Aid for firms in difficulty is examined on the basis of the Community Guidelines on State aid for rescuing and restructuring firms in difficult.

We are at present examining whether Italian Decree Law No 16 of 27 January 2004 on urgent measures in the agriculture and fishery sectors complies with the State aid rules. It provides support for dairy farmers who have received no payment for their produce.

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(1)  OJ L 160, 26.6.1999.

1

(2)  OJ L 1, 3.1.2004.

2

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