WRITTEN QUESTION P-2069/99

by Roberta Angelilli (UEN) to the Commission

(5 November 1999)

Subject: Rome central dairy: call for further information and action

I have tabled several questions on the Rome central dairy to obtain information about the progress of the procedures under way, specifically questions P-1747/96(1), P-1071/97(2), E-3408/97(3), E-0547/98(4), E-1511/98(5), E-2846/98(6), and E-0567/99(7).

The Italian Press (Il Messaggero on 11 and 12 October 1999) has recently reported that the Commission is seeking further information about the latest developments.

Can the Commission therefore say:

- why, in the time since 1996, the truth about the central dairy has not been brought sufficiently to light and the Commission itself has failed to take the necessary steps?

- why, in spite of my repeated requests, the answers which I have received to date have invariably been much vaguer and briefer than the Italian press reports in my possession?

- whether it does not believe that the investigations should be expedited, not least to limit the extent to which the Rome central dairy may be distorting the market if the alleged infringements are occurring in reality?

- could it supply a comprehensive and detailed outline of the procedure in progress and give its general view on the matter?

(1) OJ C 345, 15.11.1996, p. 102.

(2) OJ C 373, 9.12.1997, p. 60.

(3) OJ C 158, 25.5.1998, p. 103.

(4) OJ C 310, 9.10.1998, p. 84.

(5) OJ C 13, 18.1.1999, p. 39.

(6) OJ C 289, 11.10.1999, p. 9.

(7) OJ C 348, 3.12.1999, p. 102.

Answer given by Mr Fischler on behalf of the Commission

(26 November 1999)

On 30 March 1998 the Commission decided to open the examination procedure provided for in Article 88(2) (formerly Article 93(2)) of the EC Treaty in regard to aid granted by the Italian State (through the Commune of Rome) for the operation and privatisation of the Centrale del Latte di Roma.

The procedure was opened for several reasons. First, the compensation for the enterprise's operating losses appeared incompatible with the common market. Second, a compensation arrangement for public service costs which seemed impossible in a market such as that for milk products subject to common organisation. Third, this public service financing might also constitute aid to milk producers in the Lazio region. Fourth, it was possible that a State aid had been granted to the purchaser when the enterprise was privatised.

Following the Commission's decision the Italian authorities transmitted their comments by letters of 6 and 26 July 1988. A detailed examination of these replies led the Commission to write to Italy on 21 September 1999 requesting further information in order to assess the conformity of certain aids with the Community guidelines on State aid for rescuing and restructuring firms in difficulty(1).

As regards the time taken by the Commission over its examination, Article 7(6) of Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty(2) states that the Commission shall as far as possible endeavour to adopt a decision within 18 months of opening of the procedure. Given this regulatory provision, the complexity of the dossier and the need to obtain additional information from the Italian authorities, the Commission considers that the time being taken is not excessive.

The Commission regrets that it cannot as requested make a preliminary assessment of compatibility of the measures with the common market. To do so would be to anticipate its final position.

(1) OJ C 283, 19.9.1997.

(2) OJ L 83, 27.3.1999.