ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)101
Vol.1976/0036

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COMMISSION OFTHEEUROPEAN COMMUNITIES
■.V COM(76)101 final .
, Brussels ,17March 1976
I
Proposal fora ,
\ DECISION OFTHECOUNCIL
onthe level ofthe interest rate subsidy ,provided for by
Council Directive n°72/159/EEC onthemodernization ofag­
ricultural holdings ,tobeapplied inItaly
)
(submitted totheCouncil bytheCommission )
\
COMC76 )101/final .

EXPLANATORY MEMORANDUM
1.Articlec,paragraph 2,secondsubparagraph oftheCouncilDirectiveonthe
modernisation offarmsprovidesthatMemberStatescanbeauthorizedfor
aspecifiedperiod,
a)tograntinterestratesubsidiesexceeding5ifsuchactionis
warrantedbythesituationofthecapitalmarketinthatMemberState;
b)tolowertheminimumratepayablebythebeneficiaryto2foincertain
regions.
2.TheItalianGovernmenthasrequestedauthorisation
a)tograntintheMezzogiorno andintheless-favoured regionsofNorthern
ItalyandCentralItalyincludingthemountainareasaninterestrate
subsidyof11
b)tograntintheotherregionsaninterestratesubsidyof9f°i
c)tolowertheminimumratepayablebythebeneficiaryto2fointhe
Mezzogiorno andintheless-favoured regionsofNorthernItalyand
CentralItalyincludingthemountainareas.
3.TheItalianGovernmenthasrequested,ontheotherhand,undertheprovisions
ofArticle19,paragraph 1,secondsubparagraph oftheaforementioned Directhe
thattheexpenditureresultingfromtheincreasedinterestratesubsidymay
bedeclaredeligible.
4.TherateofinterestappliedatpresentinItalyforlongtermagricultural
loansis13.4%-Ifthesubsidywaslimitedto5"theamountpayableby
thebeneficiary wouldbe8.4Toohighanamount,bearinginmindthe
farmerswhowouldwishtomodernisetheirfarms,wouldconsequently endanger,
inItaly,themodernisation foreseenbytheDirective,asonlyaverylimi­
tednumberoffarmswouldbeinapositiontobeartheexpense.
Theprovisionforasubsidyof9or11besides,leavesthenetamount
payablebythebeneficiaryabovetheminimumof3or2fo.

-2-
5.TheMezzogiornoregionandtheless-favoured regionsofNorthernItaly
andCentralItaly,includingthemountainareas,arecharacterised ,asmuch
fromthegeneraleconomicviewpointasfromtheirstructureintheagri­
culturalsensebyaconsiderable backwardness incomparisonwiththe
otherItalianregions.Thelevelofpersonalincomesisbelowthenational
averageandaloweragricultural productivity confirmsthisbackwardness .
Thissituationjustifies,intheregionsconcerned,theprovisionfor
anincreasedsubsidyandtheproposedloweringoftherateremaining
payablebythebeneficiary .Besides,itmustbenotedthatagreatpartof
theseregionsisincludedintheCommunitylistofless-favoured agri­
culturalareaswithinthemeaningofCouncilDirective75/268/EECof
28thapril1975onmountainandhillfarmingandfarmingincertain
less-favoured areasunderwhichtheinterestratesubsidymaynotexceed
7%
6.Theraisingoftheinterestratesubsidybeyondthatprovidedforin
Article8paragraph2ofDirectiveno.72/159/EECbecominganessential
conditionfortheeffectiveapplication ofthisDirective,justifies
theresultantexpenditure beingdeclaredeligibleforassistance from
theGuidanceSectionofEAGGF.
7.Giventhattheincreasedsubsidyisduetothecurrentstateofthe
Italiancapitalmarket,therequestedauthorisation mustbelimitedto
arelativelyshortperiod.

THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilDirective72/159/EECof17April1972onthe
modernisationoffarms^\>andinparticularthesecondsubparagraphof
Article8(2)andthesecond,subparagraphofArticle19(l)»
HavingregardtotheproposalfromtheCommission ,
WhereasthesecondsubparagraphofArticle8(2)ofthesaidDirective
providesthatMemberStatesmaybeauthorisedtograntinterestrate
subsidiesexceeding 5%ifsuchactioniswarrantedbythesituationofthe
capitalmarketintheMemberStatesandtolowertheminimumratepayableby
thebeneficiaryto2%incertainregions;
WhereastheItalianGovernmenthasrequestedauthorisation toraisethelevel
ofinterestratesubsidyto9^tandintheMezzogiornoandtheless-favoured
regionsofNorthernandCentralItalyincludingtheirmountainareasto
11$andtolowertheminimumratepayablebythebeneficiaryto2$;
WhereastheItalianGovernmenthasfurthermorerequestedthattheexpenditure
resultingfromthe.increasedsubsidybedeclaredeligibleforassistance
Whereastheactualcurrentrateof13^4%inthesaidMemberStateforlong
termagricultural loansandtheproposedinterestratesubsidiesof9and11#
meansthatthebeneficiaryiscalledupontobearaninterestrateabovethe
minimumrequiredbytheDirective;
WhereastheMezzogiorno andtheless-favoured regionsofNorthernand
CentralItaly,includingtheirmountainareas,areclearlybackwardin
theireconomicandagricultural developmentincomparisonwithotherregions;
WhereasEAGGPparticipation intheexpenditureresultingfromtheincreased
subsidyisrecommended ,
HASDECIDEDASFOLLOWS:
(1)OJNoL96,23.4.1972,p.5and7

-2-
Article1
TheItalianGovernmentisauthorisedtoraisetheinterestratesubsidy
providedforinthefirstsubparagraphofArticle8(2)of
CouncilDirective'JZ/of17'April1972toW%theMezzogiorno
andtheless-favoured regionsofNorthernandCentralItalyincluding
theirmountainareasandto9$intheotherregions.
Article2
TheItalianGovernmentisauthorisedtolowertheminimumratepayable
bythebeneficiary providedforinthefirstsubparagraph ofArticle
8(2)ofthesaidDirectiveto2%intheMezzogiornoandtheless-
favouredregionsofNorthernandCentralItalyincludingtheir
mountainareas.
Article3
Theexpenditure incurredbytheItalianGovernmentpersuantto
Article1shallbeeligibleforassistance fromtheGuidance
SectionoftheEAGGPwithinthelimitfixedbythefirstsubpara­
graphofArticle19(3)ofthesaidDirective.
Article4
ThepresentDecisionshallbevaliduntil31December1977*
Article5
ThisDecisionisaddressedtotheItalianRepublic"
FortheCouncil

ΓΑ*1!ΛΓ"!Τ;"Λ",ηΤΛΤΡΓΙΓ·Μτtr\n-K*nPic,
D-+oA.3.1976
S1,LiraoftharwrH:8103
Premonition Crnncilpooirionrelatingtothelevelofinterest
P.T:thofthrsilmsratesubsidies,forftmnninArticle8.paragraph2.oftheCouncil
DirectiveFo.72/159/E^-Cof17April1972,concerningthemodernisation offa-nrnJtobeappliedinItaly. 'r
LilHv'r;Articlefio"CouncilPopulationFo.729/70/fecof28April1?70.
rslacirjgthefinancingofthecommone-srieultviralpolicv.
cycrflvwr*frip^teni1Rtotherelativ®lyhi^hinterestratesofItalianloans,theGovernmentofItalyvrishtoencourageanincrea-sed
investmentintheframeworkofthemodernisation offarmsbyprantin/?hiphcrinterestratesubsidies.
?/Cc:':o?fnr"*fen Ic-'ntHc.–?<nIc-rrr*.rrtfn(76)|jfc|lr*tnrrrs'cK77]
ecrrobth-îF, Γ"„Ί
Iì Il4-5
c.zrntotnn-'fera'pnln'stmtfenι
Γ^
!ί 23.3 ;29-2
bc^tntfmlf-.+rrs
li
ι;^Γ*Ί 1977
4-5r"aVf-1978mYe.,1979
7mua 2rua
3,2C:tî:?4cfnV'Vt'nn
ThisirFbpT-mrndo.-rComments'belct;
6,1Pcc'fVof!n--?nbyerH'tsrr'ttn?rAirrV^nck,",r)*rr>rxtf">cwt
y~~r m-,
s*6e2Pocjfbloffnr^rjb%*tr?*Tfc~n chefersciu*.c«vrr
rrx h
6,3Ucccn't*?fe?r.r,rv)1err:1',,-7F }T^r h
|i6.*Creditstohrr'tVifr*ifr^r* Fore
I1a »liCcrr~;
11oDuetothisproposition,thee^enditurecould"beincreasedby80,?.
•2»TheItali,-nlawf::t"ithec^str.ofthinnearnr**atth-nfol?crinrceilingsi
1976:23»?ri11^
1977:29.2rma j

BeinbursementbyE.A„G.G.F «willbeattherateof25%,ofwhich75%shall
-paii?;.in+,hoyearfolio*ringtheexpenditure bytheMemberStateandthe
remainderthefollowingyear.PaymentsbytheGuidanceSectionoftheE.A.G.G.P.
areestimatedas-follows: '
ïc-ar MemborState
Expenditure
muaReîmbursement
EAGGP.(at25%)
mua
1C76 •23.3
1077 29.2 4.5
vjtS j 1.0
1979 , 2.0
Itisestimatedthat40>ofthecoststoPEOGAisduetotheincreasein
interestrelaterates.
TheseamountswillenterintotheglobalestimatesforthisDirective,
withoutneedtomodifytheBudget.