23. 3. 9C Official Journal of the European Communities No C 73/5 
STATE AID 
N 195/88 and N 200/88 
(Italy) 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 73/03) 
Commission communication pursuant to Article 6 (4) of 
Decision No 3484/85/ECSC to other Member States 
and interested parties concerning aids which the Italian 
Government has decided to grant to the Tirreno and 
Siderpotenza steelworks. 
By letter No 2768 dated 20 April 1988, registered on 25 
April by the Secretariat-General under No 5299, the 
Italian Permanent Representation notified the 
Commission of the two aids referred to above. 
On 22 June 1988, the Directorate-General for Compe­
tition requested the Italian authorities for further infor­
mation (letter No 8637), to which it has not to date 
received any reply. It had informed the Italian authorities 
that without such information it was unable to adopt a 
position on the compatibility of the aid with the common 
market. 
As regards the del Tirreno steelworks, the Commission 
notes that an investment of Lit 1 671 million was made in 
energy conservation, which apparently benefited on 12 
June 1987 from a soft loan of Lit 668 million, i.e. 40 % 
of the investment, granted by the IRFIS (Regional 
Institute for Industrial Financing in Sicily), representing 
an interest subsidy of Lit 501 million borne by the State. 
The Commission has not been informed of the rate and 
duration of the loan. 
The investment also appears to be eligible for a grant of 
Lit 344 million (20 % of the investment), awarded by the 
Fund for the Mezzogiorno. The Commission does not 
know whether the grant has been paid and, if so, when it 
was awarded. 
The Commission would remind the Italian authorities 
that energy conservation is not provided for by 
Commission Decision No 3484/85/ECSC establishing 
Community rules for aid to the steel industry (OJ No L 
340, 18. 12. 1985), which allows for certain exceptions to 
the general prohibition on aid in this sector laid down in 
Article 4 (c) of the ECSC Treaty. In the absence of 
information which could change this view, the Commission must therefore regard the aid in question as 
being caught by the prohibition. 
As regards the case of Siderpotenza, the Commission 
notes that it involves an environmental improvement 
investment of Lit 2 550 million which benefited on 11 
June 1986 from a subsidized loan of Lit 1 020 million 
(40 % of the investment), granted by the Banca 
Nazionale del Lavoro, representing an interest subsidy of 
Lit 867 million borne by the State. The Commission has 
not been informed of the rate and duration of the loan. 
The investment is apparently also eligible for a grant of 
Lit 765 million (30 % of the investment), granted by the 
Fund for the Mezzogiorno. The Commission doe^ not 
know whether or not the grant has been paid and, if so, 
on what date the payment took place. 
The Commission would remind the Italian authorities 
that whilst aid to protect the environment can be 
exempted under Decision No 3484/85/ECSC, it must be 
granted under general aid schemes and be aimed at 
facilitating adjustment to new statutory environmental 
standards, at least two years before the introduction of 
the standards (Article 3 (1) of the Decision). In addition, 
the aid may not exceed 15 % net grant equivalent 
pursuant to Article 3 (2) of that Decision. 
On the basis of the information in its possession, the 
Commission considers that the aid in question is not 
compatible with the common market, both because of 
the prohibition on steel aid laid down in Article 4 (c) of 
the ECSC Treaty and because of the provisions of 
Commission Decision No 3484/85/ECSC. 
The Commission hereby gives the other Member States 
and interested parties notice to submit their comments on 
the measures in question within one month from the date 
of publication of this notice to: 
Commission of the European Communities, 
200 rue de la Loi, 
B-1049 Brussels. 
The comments will be communicated to Italy.