WRITTEN QUESTION E-3517/01

by Christos Folias (PPE-DE) to the Commission

(8 January 2002)

Subject: Italian State aid to shipping

The Member States take financial and fiscal measures to support their national fleets. In 1997, the Commission issued guidelines for judging the compatibility of national aid schemes for shipping with Community law. The aim of the guidelines is to achieve convergence in the Member States' policies and to avoid distortion of competition within the Community.

1. Is the Commission aware of reports in the Italian press that the Grimaldi shipping company in Italy received State aid in 1996 of USD 19 million, in 1997 USD 45m and in 1998 USD 32m? Is that aid, in addition to all other aid, to be considered as consistent with the guidelines? Is the Commission also aware that during the same period the Grimaldi company built five ro-ro vessels and two car/passenger ferries as well as refitting and repairing five more of the latter vessels?

2. Can the Commission provide detailed figures of all State aid received by Grimaldi from 1996 onwards? For what specific purpose was each instalment of aid approved by the Italian authorities and the Commission, and on what criteria were they based?

Answer given by Mrs de Palacio on behalf of the Commission

(15 February 2002)

1. The Commission has approved (by letter to Italy of 13.5.1998 No SG (98) D/3776) the Aid to shipping companies Italian Second Register case No 350/97. This scheme provides for a 100 % reimbursement of seafarers' income tax and social charges and a partial reduction in corporate tax paid by shipping companies on profits derived from vessels entered in the international register (Second Register). The scheme is open ended in time and therefore still applied. The Commission may however consider adaptations to the scheme in case necessary.

Further, by letter to Italy of 18.8.1999 (No SG(99) D/6875), the Commission approved aid for the reduction of social costs as regards EC seafarers employed on ships of maritime transport companies flying the Italian flag and carrying out cabotage services in Italy (case No N 396/99).

Training aid measures (case No NN 75/96) were approved in 1996.

Regional aid to Sardinia was declared not compatible with the EC Treaty by the Commission subject to a first negative decision (case No C 23/96) and a second negative decision (case No C 71/97).

Earlier schemes (Italian laws dating back to 1993) providing i.a. for investment facilities need to have been adapted to the guidelines adopted in 1989 and 1997 (Community guidelines on State aid to maritime transport(1) respectively, as requested by the Commission through the means of its proposal on appropriate measures.

The Commission is not aware of any other aid scheme for the maritime sector in Italy over the period 1998-1999 or of any individual aid granted to the Grimaldi shipping company as mentioned by the Honourable Member. During that period no Community aid under PACT had been granted to that company either.

2. In case the Commission is notified of a State aid scheme, it takes its decision after having examined the scheme as such, which usually includes a certain number of criteria, which the Member State concerned needs to respect when paying out aid to individual companies. Should there be however any abusive application of a State aid scheme authorised, the Commission may examine on a case by case basis the aid granted to individual companies also under a scheme. As this is fortunately not the normal procedure, the Commission is not necessarily informed about the amounts granted to an individual company under an approved scheme.

(1) OJ C 205, 5.7.1997, p.5.