OfficialJournaloftheEuropeanCommunities 11'
17.5.62 OFFICIALJOURNALOFTHEEUROPEANCOMMUNITIES 1239/62
COMMISSION DECISION
authorizingitem7oftheAppendixtotheGoodsTariffoftheItalianStateRailways
(OnlytheItaliantextisauthentic)
to235018metrictonsand254millionmetrictons/
km,andwhereastheFSreceivecompensationoutof
Statefundsequaltoasubstantialproportionofthe,
lossinrevenueresultingfromtheoperationofthis
measure :
IITHECOMMISSION OFTHEEUROPEAN
ECONOMIC COMMUNITY ,
HavingregardtotheTreatyestablishingtheEuro­
peanEconomicCommunity,andinparticularArticle
80thereof;
HavingregardtotheProtocolonItalyannexedto
thatTreaty;
Havingregardtoitem7oftheAppendixtothe
GoodsTariffoftheItalianStateRailways(FS)in
itscurrentversion,aslaiddowninDecretodilegge
No9of1January1940,promulgatedasLawNo674
of13May1940,concerningpowersinrespectofthe
introduction ,amendmentanddiscontinuance ofgoods
ratesontheFS,inLawNo634of27July1957and
intheMinisterofTransportDecreeNo5272of2
May1958;
HavingregardtotheviewsexpressedbytheItalian
Government inthecourseoftheconsultations held
bytheCommissioninBrusselson13November1961
inacordancewithArticle80(2);Whereas,withoutprejudicetotheapplicabilitytothe
tariffprovisioninquestionofArticle80,theItalian:
Government hassubmittedinaccordancewiththat
Article-incasetheCommission shouldconsiderit
tobeapplicable-anapplicationforauthorizationto
retaininoperationitem7oftheAppendixtotheFS;
GoodsTariff;
Whereasthesaidtariffprovisionappliestothecar-'
riageofgoodswithintheCommunity,whichincludes
aMemberState'sdomestictraffic;whereasitmusf
beregardedasaState-imposed measurewithinthe.
meaningofArticle80(1),sinceitislaiddownby
nationallawsandregulations;whereasitconstitutes
supportforindustrialproductioninsouthernItaly
corresponding totheobjectivelymeasurablediffer­
encebetweenratesunderthenormaltariffsandthose
underitem7oftheAppendixtotheFSGoods
Tariff;whereasthissupportisgiventospecificin­
dustries,namelyundertakingssituatedintheareato
whichtheprovisionapplies;whereasinconsequence
thistariffprovisioncomeswithinthescopeofAr­
ticle80(1);
Whereasitisnotevenclaimedthatthetariffprovi­
sionisatarifffixedtomeetcompetitionwithinthe
meaningofArticle80(3);
WhereasitisthereforefortheCommissiontodecide,
inaccordancewithArticle80(2),ontheapplication
submittedbytheItalianGovernmentforauthoriza­
tion,insofarasthismayberequired,toretainin
operationitem7oftheAppendixtotheFSGoods
Tariff;I
Whereas ,item7oftheAppendixtotheGoodsTariff
oftheItalianStateRailways(FS),whichisdesigned
topromotetheindustrialization ofsouthernItalyand
theItalianislands,appliestogoods,andinparticular
tomachinery (whethermanufactured inItalyor
abroad),tobeusedintheconstruction ,development
ormodernization oftheplantandequipmentofin­
dustrialundertakings ;whereassuchmachinerymust
beintendedforpermanentuseintheseundertakings
andmustbenecessarytotheirnormalproduction;
WhereastheAnnexappliestogoodsconsignedfrom
abroadorfromanystationontheItalianrailway
networktoundertakingsinsouthernItaly,theItalian
islandsorCertainareasofLatiumandtheMarches;
whereastheprovisionsinquestiongive,ascompared
withthenormaltariffs,reductionsofbetween10%
and50%accordingtothedistancecoveredinItaly;
WhereasthevolumeofgoodscarriedbytheFSon
thesetermsinthefinancialyear1960/61amountedIII
WhereastheItalianGovernmentputsforwardthe
followingargumentsinsupportofitsapplication :

12 OfficialJournaloftheEuropeanCommunities
Thistariffprovisionreflectsthechangethathas
takenplaceinItalianregionalpolicyovertheyears.
Theoriginalschemewastopromote,bymeansof
Stateaid,anexpansionwhich,throughthedevelop­
mentofagricultureandimprovementofthetransport
network,wouldraisethegeneraleconomyofthese
regionstothelevelofnorthernItaly;thisschemehas
provedinadequate.Therealizationthatiftheaims
pursuedaretobeachievedStateinterventionis
equallynecessaryintheindustrialfieldhasledto
thepresentvastprogrammeforthegeneralindustrial­
izationofsouthernItaly.Underlyingthisprogramme
istheconvictionthattheproblemoftheMezzo­
giornodependsforitssolutionnotonlyonaidto
agriculturebutalso,essentially,onindustrialpro­
gress.Onlybycreatinganindustrysuitedtothepo­
tentialofsouthernItalyandmakingfulluseofthe
hitherhounusedlabourpotential,cantherealincome
ofthepopulationintheseareasbeeffectivelyraised.
Thistariffprovision,togetherwithotherspecial
tariffsandawholeseriesofmeasuresinwidely
varyingspheres,contributestotheaimssetout
above;thisisnotmerelyaneconomictask,butalso
asocialtaskoftheutmostimportance,thepolitical
aspectsofwhichshouldnotbeoverlooked;toabolish
oramendthisprovisionisnotatpresentpossible,
sinceitisindissolublyboundupwiththeother
measuresinacarefullythought-outsystemofmu­
tuallycomplementary andinteractingaids;theattain­
mentoftheseobjectiveswouldbejeopardizedifthe
ItalianGovernmentwerepreventedfromemploying
allmeanshitehrtoatitsdisposaltoresolvetheprob-.
leminafieldwherethesuccessofsuchmeanscan
beensuredonlybytheircoordinatedandsimulta­
neousapplication;Whereasthepurposeofitem7oftheAppendixto
theFSGoodsTariffistopromotetheindustrializa­
tionofcertaineconomicallyunderdeveloped regions
ofItaly,thusleadingtoaprogressiveimprovement
inproductioncapacityinthoseregionsandtoa
constantraisingofthelivingstandardofthepopula­
tion,inparticularbythecreationofnewemploy­
ment;
Whereasitisthusestablishedthattheaforesaidtariff
reductionsunderitem7oftheFSGoodsTariffare
bothusefulandnecessary;whereas,bearinginmind
thegeographically remotesituationofsouthernItaly,
itisreasonablethattheaidnecessarytothatregion
shouldcoverthecarriageofgoodsandhenceitem7
oftheAppendixtotheFSGoodsTariffappearsto
beaformofsupportappropriatetotheobjectivesin
view;
Whereasitem7oftheAppendixtotheFSGoods
Tariffasnowinforcehasnotbeenshowntoaffect
competitionasregardstheproductsconcernedina
mannernotjustifiedbytheneedsoftheunderdevel­
opedareainquestion;whereasthetariffprovisions
applyequallytoproductsfromtheotherMember
States,thusenablingallproducerswithintheEuro­
peanEconomicCommunitytocontributewithout
discrimination tothecapitalequipmentofindustry
insouthernItaly;whereasthetariffreductions,being
scaledaccordingtodistance,evenoperatetothe
advantageofnon-Italiansuppliers;
Whereasthereisnoevidencefromtheexamination
carriedoutinaccordancewithArticle80(2)that
item7oftheAppendixtotheFSGoodsTariffhas
anydeleteriouseffectsoncompetitionbetweenthe
differentmodesoftransportwithinthemeaningof
thatprovision;
Whereasfortheforegoingreasonsthecontinuedap­
plicationofitem7oftheAppendixtotheFSGoods
Tariffmaybeauthorized;
Whereas,whilegrantingauthorizationforanindeter­
minateperiod,theCommissionretainsthepowerto
amendorrevokesuchauthorizationifitfinds,ofits
ownaccordorattherequestofaMemberState,that
authorizationisnolongerjustified,IV
Whereasinexamingitem7oftheFSGoodsTariff,
asrequiredbyArticle80(2),theCommissionmust
takeaccountbothoftheconsiderations expresslyset
outinthatprovisionandalsoofthegeneralobjec­
tivesstatedinArticles2and3oftheTreaty,asinter­
pretedinthelightofthePreamblethereto,andalso,
inthisinstance,oftheprovisionsoftheProtocolon
Italy;whereasitisclearfromthesetextsthathar­
moniouseconomicdevelopmentintheCommunity
asawholeentailsareductionbothinthedisparities
betweenitsvariousregionsandintherelativeback­
wardnessofthelessfavouredregions,ofwhich
southernItalyisone,andthatitisfortheCommu­
nity'sinstitutionstoemploythemeansandproce­
duresatitsdisposalundertheTreatytofacilitatethe
ItalianGovernment'simplementation ofitsten-year
planforeconomicexpansiondirectedinteraliaat
thatregion;whereastheCommissionshouldhave
theseconsiderations inmindwhenexaminingtrans­
portratesandconditionstowhichArticle80(1)
applies,sinceparagraph2ofthatArticlerequiresit
totakeaccountinparticularoftherequirementsof
anappropriateregionaleconomicpolicyandofthe
needsofunderdeveloped areas;HASADOPTEDTHISDECISION :
Article1
Applicationofitem7oftheAppendixtotheGoods
TariffoftheItalianStateRailways,asinforceon
13November1961,isherebyauthorizedwitheffect
from1January1962.
Article2
ThisDecisionmaybeamendedorrepealedifthe
Commisison,actingofitsownaccordoratthere­

1
OfficialJournaloftheEuropeanCommunities 13
questofaMemberState,findsthatitisnolongerDoneatBrussels,16February1962.
justified.
FortheCommission
Article3 ThePresident
ThisDecisionisaddressedtotheRepublicofItaly. W.HALLSTEIN