WRITTEN QUESTION E-4013/96 by Antonio Tajani (UPE) to the Commission (14 January 1997)

Subject: Realignment of the 'fiscalization' of social security contributions for 25 local authorities in the province of Ascoli Piceno

The Italian Government's Ministerial Decree of 22 June 1995 published in the Official Gazette No 256 of 2 November 1995 established that for firms in Southern Italy a plan for realigning the 'fiscalization' of social security contributions with the values ascertained for firms in Central and Northern Italy should be concluded by 1 January 2000 on the basis of the guidelines laid down by the EU and following a plan for the gradual reduction in the 'fiscalization' differential.

The Decree did not mention 25 local authorities in the province of Ascoli Piceno covered by Article 1 of unified text No 218/78 in the geographical area entitled to the special assistance for the Mezzogiorno and related and derived legislation.

It is feared that the inclusion of these 25 local authorities in Central and Northern Italy, by virtue of the Ministerial Decree, would entail a sudden increase of 6.16% in labour costs for firms in Ascoli, to be backdated to 1 July 1995, with further consequences for the competitiveness of businesses.

What is the Commission's interpretation of the provisions of Article 15 of Decision 95/455/EC ((OJ L 265, 8.11.1995, p. 23. )) of 1 March 1995, in particular where it says 'The Commission considers that this is a general principle which takes account of any objective peculiarities of situations which are not comparable to those of the other regions which may qualify for exemption pursuant to Article 92(3)(c), and it intends to continue applying that principle, whilst accepting that in the same circumstances minor operating aid may be granted on an exceptional, temporary basis'?

Does its interpretation allow the 25 local authorities of Ascoli Piceno to receive the treatment reserved for the Abruzzo Region, which is guaranteed a gradual reduction in contributions from 1 January 1997?

Answer given by Mr Van Miert on behalf of the Commission (13 February 1997)

The Commission would inform the Honourable Member that, by its Decision of 2 March 1988 on aid to the Mezzogiorno, the reduction in social security contributions in the province of Ascoli-Piceno was considered to be incompatible with the common market.

At the time, the Commission took the view that the socio-economic indicators for the province no longer provided any justification for operating aid, such as the reduction in social security contributions. Such aid is reserved for regions meeting the conditions for the derogation laid down in Article 92(3)(a) of the EC Treaty. The province of Ascoli-Piceno does not fall into this category.

However, given the need to help businesses in the province adapt to the new situation, characterized by less incisive forms of economic support, the Commission had allowed the Italian Government, as a temporary back-up measure, to continue to apply the aid until 31 December 1990.

The province of Ascoli-Piceno has therefore already benefited from a gradual reduction in the advantages enjoyed by it under the scheme for reducing social security contributions for the same reasons as illustrated in recital No 15 of Commission Decision 95/455/EC, to which the Honourable Member refers.