WRITTEN QUESTION P-2378/97 by Umberto Scapagnini (UPE) to the Commission (3 July 1997)

Subject: Sicilian Regional Law No 23/90, Article 5

In May 1996, the Palermo Regional Department of Agriculture and Forests suspended application of Article 5 of Regional Law No 23/90 governing the maintenance of anti-frost ventilators, the treatment of irrigation water and the heating of greenhouses, pending the Commission's final communication on the compatibility of the aid (contributions totalling 80% of the cost) provided for by this regional law with the provisions of Council Regulation (EEC) No 2328/91 ((OJ L 218, 6.8.1991, p. 1. )).

In 1991, given the Commission's prolonged silence regarding the decision which had been announced, the Region of Sicily ordered that the above-mentioned provision be put into effect. Under Article 17 of Regional Law No 15/93 (which was duly notified to the Commission and gave rise to no objections on grounds of incompatibility) the whole of Article 5, subparagraph 2, of Regional Law No 23/90 on protection from frost was replaced. In response to the Commission's letter of 15 March 1996 and the annex to it, the Region forwarded detailed reports concerning Article 5 of Regional Law No 23/90 in a note dated 9 May 1996 and on subsequent dates.

In view of the fact that the same frost-protection measures, requiring a high percentage of aid, are provided for under the multiannual guidance programme and other laws in Greece and could have an impact on the competition rules but have never been challenged by DG VI and given that the Commission has authorized the same type of aid, to a level of 75 per cent, for eight regions in Greece (Aetolia and Acarnania, Argolis, Arta, Achaia, Elia, Corinth, Laconia and Preveza), does the Commission agree that it should, as a matter of urgency, provide a definition of the compatibility of subparagraphs 2 and 6 of Article 5 of Regional Law No 23/90 to permit the continuation and finalisation of the projects under way and eliminate the cause of the clear disadvantage suffered by farms in the frost zones of the provinces of Catania and Syracuse, where water resources are moreover of poor quality, on whose survival the citrus-fruit economy of the provinces of Catania and Syracuse depends?

Answer given by Mr Fischler on behalf of the Commission (28 July 1997)

Articles 5 and 10 of Sicilian Regional Law 23/90 provide for aid for investment on farms covered by Article 12(4) of Regulation (EC) No 950/97 on improving the efficiency of agricultural structures ((OJ L 142, 2.6.1997. )) (which has replaced Regulation (EEC No 2328/91) and must be scrutinized for conformity with that Regulation.

The measures in question do not respect the conditions set by Article 12 of Regulation (EC) No 950/97 as regards aid rates, maximum investment volumes and sectoral restrictions.

These facts were pointed out to the Region of Sicily in letters from the Commission of 15 March and 30 April 1996 and the regional authorities were asked to notify the Commission whether they intended to amend or repeal the legislation in question so as to resolve the problems of conformity. The region has however never expressed any intention of adjusting the provisions in question in line with the Commission's observations, which were repeated at a meeting with the Sicilian authorities in Brussels on 11 October.

Accordingly the problems of conformity with Regulation (EC) No 950/97 remain and prevent the Commission from taking a decision under Article 30 of that Regulation.

The Commission has never authorized similar aids for Greece that fall within the field of application of Article 12(4) of Regulation (EC) No 950/97.