1999/590/EC: Commission Decision of 4 May 1999 on the measures for the restructuring of road haulage and the development of intermodality (Law No 454 of 23 December 1997) which Italy intends to implement (notified under document number C(1999) 1267) (Only the Italian version is authentic) (Text with EEA relevance)
Date: 1999-05-04
Institutions: European Commission
Subjects: Italy, State aid, aid for restructuring, aid to undertakings, combined transport, road transport

L 227/12

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Official Journal of the European Communities

28.8.1999

COMMISSION DECISION

of 4 May 1999

on the measures for the restructuring of road haulage and the development of intermodality (Law
No 454 of 23 December 1997) which Italy intends to implement

(notified under document number C(1999) 1267)

(Only the Italian version is authentic)

(Text with EEA relevance)

(1999/590/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community, and in articular to the first subparagraph of
Article 88(2) thereof

Having regard to the agreement on the European Economic
Area, in particular Article 62(1)(a) thereof,

(4)

Having called on interested parties to submit their comments
to that provision (1), and having regard to their
pursuant
comments,

Whereas:

(5)

(6)

I. PROCEDURE

(1)

(2)

By note from its Permanent Representation No 2725 of
24 April 1997, registered at
the Secretariat-General
under number N 403/97,
the Italian Government
notified the Commission of draft Law No 3270 on the
restructuring of road haulage and the development of
intermodality.

information were sent to
Two requests for additional
the Italian authorities on 23 May 1997 and 16 June
1997. A bilateral meeting took place in Brussels on
11 July 1997 to clarify the aims of
the Law and
examine the issues raised with regard to Community
legislation by the various measures proposed. Following
this meeting, the Italian authorities were asked to send
the Commission, as soon as possible, an amended draft
Law taking account of Commission’s comments.

(3)

Subsequently,
the draft Law
two revised versions of
were sent to the Commission in September and then in

November 1997. At bilateral meetings held in October
and November 1997 and by letter of 11 November
1997,
the Commission emphasised the problems of
compatibility with Community law which the planned
measures continued to pose despite the amendments
made to the notified text.

The Italian authorities replied to the Commission’s letter
of 11 November 1997 by note from the Permanent
Representation No 8392 of 12 December 1997. During
a further bilateral meeting on 17 December 1997, the
Italian authorities gave the Commission the text of the
law adopted by the Chamber of Deputies. Following its
adoption by the Senate, this text finally became Law
No 454 of 23 December 1997 (2),
forwarded to the
Commission by note No 794 of 30 January 1998 from
the Permanent Representation.

By letter of 28 April 1998, the Commission informed
the Italian Government of its decision to initiate the
(formerly,
laid down in Article 88(2)
procedure
Article 93(2)) of
the
measures set by Law No 454. The main issues raised in
the decision to initiate the procedure were further
discussed at bilateral meetings held in May and June
1998.

the EC Treaty in respect of

the

the

Following these discussions,
Italian authorities
proposed a substantial revision of the planned scheme
in order to ensure its compatibility with Community
law. By note No 4757 of 16 July 1998 from the
Permanent Representation,
Italian Government
provided the Commission with its observations on the
decision to initiate the procedure, along with an outline
of the proposed amendments to Law 454/97 and the
related ministerial
(or draft
decrees). The text of the proposed amendments to the
Law was then forwarded to the Commission by letter
No 5142 of 30 July 1998 from the Permanent
Representation.

implementing decrees

(1) OJ C 211, 7.7.1998, p. 5.

(2) Official Gazette of
31.12.1997, p. 4.

the

Italian Republic, General series, No 303,

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The decision to initiate the procedure was published on
7 July 1998 (3). As part of
the
Commission invited other Member States and interested
third parties to submit their comments.

the proceedings,

II. DESCRIPTION OF THE MEASURE

A. Background

(7)

(8)

The Commission received comments from interested
third parties in August 1998. By letter of 8 September
it passed the comments on to the Italian
1998,
Government, which was given the opportunity to react.
The Italian reply was received by letter No 6566 dated
7 October 1998 from its Permanent Representation.

(13)

(9)

In its fax of 24 November 1998, the Italian Permanent
Representation informed the Commission that
the
Italian Council of Ministers had, on 19 November 1998,
approved the text of the amendments to Law 454/97.

(10) At bilateral meetings held in Brussels in December 1998
and January 1999 the Italian authorities were then
asked to provide further clarifications on some of the
proposed measures. In a letter from the Italian Ministry
of Transport No 370 dated 22 January 1999, forwarded
via the Permanent Representation on 29 January 1999,
the Commission received the requested clarification and
was informed that the Italian authorities withdrew the
capacity reduction measure
notification as
contained in Article 3(7) and (8) of Law 454/97.

to the

(11)

Furthermore, on 15 February 1999 the Commission
received the text of draft Law No 5527 of 17 December
1998 (4), setting out amendments to Law 454/97. By
the following letters No 854 of 15 February 1999 from
the Ministry of Transport and No 3296 of 18 February
1999 from the Permanent Representation, the Italian
authorities informed the Commission of their intention
to further amend some provisions of draft Law 5527
implementing decrees, the
and one of the ministerial
Decree on incentives for investments in innovation and
training, the amended text of which they annexed to
letter No 3296.

(12)

By letter No 1234 of 8 March 1999 from the Ministry
of Transport, the Italian authorities finally provided the
Commission with the revised text of the draft Decree on
Incentives for Groupings. However, by letter No 221/GA
of 29 April 1999 the Italian authorities withdrew the
notification as to the subsidy measures on incentives for
mergers and associations between road haulage firms
contained in Law 454/97.

(3) See note 1.
(4) Published in Acts of Parliament, XIIIth legislature, as draft Law

No 5527, Acts of the Chamber of Deputies.

The aim of the Italian scheme is to reduce the economic
and structural difficulties facing the road haulage sector
and to promote intermodality and combined transport.
To this end, Law 454/97 contains subsidy measures
designed to improve the situation of road hauliers and
to increase
the use of combined transport. Such
measures are implemented by ministerial decrees in
which detailed rules and conditions are set out. This
concerns the following regulatory texts: 1. Ministry of
Transport Decree on incentives for early retirement for
single-vehicle hauliers of 10 June 1998 (5); 2. Ministry
of Transport Decree on incentives for investments in
innovation and training of 14 October 1998) (6), as
amended by the draft Ministry of Transport Decree sent
by the Italian Government on 18 February 1998 (see
point 11 above); 3. Ministry of Transport Decree on
incentives
combined transport of 14 October
1998 (7). On 8 March 1999 the Italian Government also
sent a draft Ministerial Decree on incentives for capacity
reduction; no account is taken of the draft, however, for
the purposes of this decision, following the withdrawal,
on 29 April 1999, of the notification of the measures in
question (see point 12).

for

the enforcement of

the scheme has been
However,
suspended until the final decision on its compatibility
with the common market
to be adopted by the
Commission under Article 88 of the Treaty. Subject to
this decision, the scheme is intended to apply until the
year 2000.

(14) Under Law 454/97, subsidies may take different forms.
Depending on the various measures, either cash grants
or interest relief on mid-term loans is possible. Interest
relief (cid:151) whenever applicable (cid:151) is based on a (cid:145)reference
in the
rate(cid:146) whose method of calculation is set out
Decree of
the Treasury of
21 December 1994 (8). As confirmed by the Italian
authorities in their
the
current reference rate for the purposes of Law No 454
varies from 5 % to 5,3 % depending on the size of the

letter of 22 January 1999,

the Italian Minister

for

(5) Official Gazette of
15.6.1998, p. 47.
(6) Official Gazette of
10.11.1998, p. 25.
(7) Official Gazette of
10.11.1998, p. 29.
(8) Official Gazette of
30.12.1994, p. 29.

the

Italian Republic, General series, No 137,

the

Italian Republic, General series, No 263,

the

Italian Republic, General series, No 263,

the

Italian Republic, General series, No 304,

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28.8.1999

firms concerned (9). According to Article 2(2) of
the
Law, an interest rate of one third of the reference rate
will be applied to subsidised loan operations.

(15)

Funding is paid by the Italian Government
through
banks which have entered into a specific agreement
with the Ministery of Transport for this purpose. In the
said letter of 22 January 1999, the Italian authorities
stated that the banks which at that date had signed such
an agreement were (cid:145)Mediocredito Centrale SpA(cid:146) and
(cid:145)Artigiancassa SpA(cid:146). Under this agreement,
the banks
apply the reduced interest rate to the borrowers and are
in turn compensated up to the reference rate by the
Government.

Under Article 6(1) of Law 454/97, Mediocredito
Centrale SpA and Artigiancassa SpA are also entrusted
with the preparatory examination of all applications for
subsidies provided for in the Law. Subsidies are then
granted by the Committee for Road Haulage and
Intermodality referred to in Article 8 of the Law.

(16)

The subsidy measures established by Law 454/97 are
described in detail herein. However, no description is
given of the measures provided for in Article 3(7) and
(8) of the Law on incentives for capacity reduction and
in Article 4 of the Law on incentives for mergers and
associations, since the notification as to the measures in
question has been withdrawn by the Italian Government
(see points 10 and 12).

B. Aid to combined transport activities

(17) Article 1(2)(f) and 1(3)(d), Article 2(1)(c) and Article 5
of Law 454/97, as amended by draft Law 5527, deal
with specific aid measures to combined transport. These
measures are implemented by the Decree on Incentives
for Combined Transport
1998
(hereinafter
referred to as (cid:145)the Combined Transport
Decree(cid:146)), as amended. Article 2(1)(e) of Law 454/97, as
amended,
training aid also for
combined transport activities. These aspects are dealt
with under points 62 and 27 and 82 to 86 of this
decision relating to aid for training.

covers aspects of

14 October

of

(18) Article 1(2)(f) of

the notion of
combined transport, as used in the Law. The definition

the Law defines

(9) The reference rate referred to in the Ministerial Decree of 1994 is
currently 5 % per annum in the industrial sector and 5,3 % per
annum in the craft trades sector. Smaller firms are covered by the
craft trades sector.

that

states

is closely aligned to the Community definition found in
Article 1 of Council Directive 92/106 of 7 December
1992 on the establishment of common rules for certain
types of combined transport of goods between Member
States (10). Article 1(3)(d)
the aid under
Law 454/97 should be given to finance combined
transport equipment, and that up to 17 % of the overall
resources should be spent for this aid. Article 2(1)(c) of
the Law empowers the Government to give aid for the
(cid:145)acquisition of combined transport units,
in particular
those which are specifically designed for combined
transport under the ADR/RID rules for the carriage of
dangerous goods, and under the ATP rules for the
carriage of perishable goods(cid:146).

(19) Article 5(1) of the Law states that five-year loans may
be given for up to 60 % of the total investment in the
equipment mentioned under Article 1(3)(d), up to a
maximum limit of ITL 1,5 billion. Article 5(2) defines
more specifically what the financial benefits referred to
(a) construction of
in Article 5(1) are intended for:
including depots and
combined transport
transhipment equipment;
(b) purchase of equipment
dedicated to monitoring the combined transport chain;
(c) purchase of combined transport units. Article 5(3)
states as a further condition that projects funded under
Article 5(2) must comply with national and Community
rules on fair competition and must be in line with a
rational development of combined transport.

terminals

(20)

The Decree on combined transport implements these
provisions as follows: First,
it defines the notion of
combined transport, following the definition in Article 1
of Directive 92/106. In Article 2 of the decree, the types
of allowed investment are further defined in accordance
with Article 5(1) and specific conditions are attached.
Article 3 of the Decree then states the conditions and
procedure for obtaining the loan. Article 3(6) of the
Decree confirms that none of the subsidies provided for
may be granted unless the Commission has declared
them to be compatible with the provisions of
the
Treaty.

C. Aid to road terminals

(21) Article 2(1)(b) and 2(2)(b) of Law 454/97, as amended
by draft Law 5527, provide for
to road
haulage firms for the acquisition of road terminals also
including plants for the assistance and repair of vehicles,
waste treatment and storage of goods. The measure is
implemented by Articles 2(1)(c) and (d), 2(2), 2(3) and
the Decree on incentives for investments in
4(a) of

subsidies

(10) OJ L 368, 7.12.1992, p. 32.

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and

training

innovation
1998
(hereinafter the (cid:145)Decree on innovation and training(cid:146)), as
amended by the draft Ministerial Decree forwarded by
the Italian authorities on 18 February 1999.

14 October

of

(22)

Terminals which tie in with national and regional
transport planning may be subsidised through low
interest loans up to 60 % of investment costs up to a
maximum amount of ITL 1 billion (approximately EUR
516 457). Funding is conditional upon a substantial
financial contribution by the recipient to the proposed
investment.
the
Non-resident
Community authorisation provided for
in Council
Regulation (EEC) No 881/92 of 26 March 1992, on
access to the market in the carriage of goods by road
within the Community to or from the territory of a
Member State or passing across the territory of one or
more Member States, may also benefit
from the
measure (11).

hauliers

holding

D. Aid for purchase and adaptation of vehicles

(23)

The first sentence of Article 2(1)(c) and 2(1)(d) of
Law 454/97, as amended by draft Law 5527, set up a
subsidy measure for the purchase and adaptation of
vehicles with the general objective to renew and
thereby reducing overall
improve the vehicle fleet,
exhaust emissions and increasing safety. The measure is
implemented by Articles 3 and 4(b) of the Decree on
innovation and training, as amended (see point 12).

(24) Aid may accordingly be granted to road haulage firms
(both national and non-resident, when holding the
their
Community licence)
vehicles that are at least five years old. The purchase is
financed through low-interest loans covering up to 70 %
of
costs up to ITL 1 billion
(approximately EUR 516 457).

replacement of

investment

total

the

for

(25) Adaptation of

in order to
the existing vehicle fleet
reduce polluting noise and exhaust emissions may be
subsidised up to 25 % of such adaptation costs, as duly
proved by documents.

E. Aid to training

(26) Article 2(1)(e) of Law 454/97, as amended by draft
Law 5527 and implemented by Article 5 of the Decree

(11) OJ L 95, 9.4.1992, p. 1.

on innovation and training, introduces an aid measure
for training activities in order to help operators and
their staff to adapt to new business models and new
technologies. Access to this measure is open to both
national
the
Community licence).

non-resident

(holding

hauliers

and

(27)

The aid is intended as a contribution of up to 50 % of
the eligible costs, mainly defined by the ministerial
decree as the costs of participation in training sessions
and courses and the financing of
training projects
involving both transport undertakings and university
for
institutes. The possible use of EU resources
co-financing activities is allowed.

F. Aid for the purchase of computer systems and

equipment

(28) An aid measure

for

the purchase of

computer
equipment is introduced by Article 2(1)(a) of the Law,
as amended, and is implemented by Article 2(1)(a) of
the Decree on innovation and training, as amended. The
subsidies are designed to facilitate the purchase of
computer systems and equipment for use in the training
activities provided for in Article 5 of the same Decree
for innovation in general management methods and in
data interchange.

(29)

(30)

loans up to 75 % of

investment costs
Low-interest
within the limit of
ITL 550 million (approximately
EUR 284 051) may be granted for this purpose to both
a
national
Community licence). Beneficiaries are required to make
a substantial
financial contribution to the planned
investments.

non(cid:150)resident

(holding

hauliers

and

G. Aid for early retirement

This measure is established by Article 3(1) to (5) of
Law 454/97 and implemented by the Decree on Early
Retirement of Single-Vehicle Hauliers of 10 June 1998.
An early retirement premium is provided for national
hauliers owning only one vehicle of more
than
11,5 tonnes who, on the day of entry into force of the
law, have been holding an operating licence for at least
ten years. Applicants must agree to be deleted from the
road hauliers register and terminate haulage activities
for at least 10 years. Access to the measure is allowed
for only six months following the entry into force of

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the law. However, according to Article 3(3) of draft
extended until
Law 5527,
31 December 1999.

this period may be

phase-out of the existing system of authorisations based
on load capacity. Under those provisions, only one
authorisation with no load limit will be needed for each
operator of road haulage for hire or reward as from
1 January 2001. Specific rules are established for the
transitional period.

(31)

The amounts of the premium are fixed at ITL 60 million
(approximately EUR 30 987) and ITL 110 million
(approximately EUR 56 810) per haulier owning a
vehicle up to 26 tonnes or up to 44 tonnes respectively.

(35)

III. COMMENTS FROM THE ITALIAN GOVERNMENT

(32)

(33)

the procedure,

the Italian
Following the opening of
Government submitted to the Commission comments
and observations on the
compatibility with the
Community law of the measures envisaged by letter of
16 July 1998 from the Permanent Representation.

The Italian letter underlines that the planned scheme has
a general objective of rationalising the goods transport
sector by means of specific support measures for the
restructuring of road haulage and the development of
the measures under
combined transport.
In fact
discussion are intended to foster innovation of
their
plant, equipment and organisational systems, in order to
encourage restructuring of the supply of road haulage
services and to improve
sector.
Moreover, the scheme provides for measures to develop
combined and intermodal transport, so as to favour the
shift from road to other modes.

efficiency in the

Italian

proposed

authorities

subsequently

The
a
substantial revision of the legal bases of the planned
measures, in order to ensure their compatibility with the
Community rules on State aids. According to the Italian
Government, this revision now takes account of all the
remarks and observations made by the Commission in
examining the subsidy scheme.

The revised legal instruments now include the amended
text of Law 454/97 as well as rules of implementation,
introduced by the ministerial decrees referred to above.

IV. COMMENTS FROM INTERESTED PARTIES

(36)

Further to the publication of the decision to initiate the
procedure,
following
the Commission received the
comments from interested third parties:

A. Comments from FNTR and Premat-STP

The further overall objectives of
the scheme under
discussion are environmental protection and road safety.
According to the Italian authorities,
the envisaged
measures will
improve environmental protection and
increase road safety, either directly by favouring the
purchase of less polluting vehicles and the adaptation of
the existing fleet to higher environmental standards, or
indirectly by reducing empty running in relation to the
rationalisation of logistic services and the increase in
combined transport techniques.

(37)

(34) Within this general framework, the law also introduces
the bases for new rules on access to the occupation of
road haulage
road haulier and on liberalisation of
operations.
the Italian Government
In this context,
issued inter alia Legislative Decree No 85/98 (12) of
14 March 1998 and the Decree of
the Minister of
Transport No 212 (13) of 22 May 1998, providing for a

is not

to consider

By means of different letters both dated 31 July 1998,
(cid:145)FNTR(cid:146) and (cid:145)Premat-STP(cid:146) forwarded to the Commission
their observations on the opening of the procedure in
respect of the Italian aid scheme. FNTR is a French trade
association in the road haulage sector; (cid:145)Premat-STP(cid:146) is a
French road haulage company. Both their letters point
that, although the planned aid to mergers and
out
conditional upon any capacity
associations
the Commission
reduction by the firms concerned,
compatible with
the measure
seems
reportedly in
Community law. This
contrast with previous Commission practice.
In its
decision N 773/A/94 (14) the Commission imposed such
a condition when approving a French scheme of aid to
groupings between road haulage firms. It is underlined,
moreover, that under the Italian rules on access to the
road haulage market, beneficiaries of aid to groupings
are allowed to further increase their load capacity in the
transitional period leading to the final abolition of
quantitative restrictions on the load capacities of Italian
lead not only to an
hauliers. This allegedly will

conclusion is

(12) Official Gazette of
9.4.1998, p. 42.
(13) Official Gazette of
7.7.1998, p. 11.

the

Italian Republic, General series, No 83,

the Italian Republic, General series, No 156,

(14) Commission Decision of 18 October 1995 in case N 773/A/94 (cid:151)

France (OJ C 335, 13.12.1995, p. 10).

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unreasonable discrimination against French hauliers, but
also to a significant distortion of competition.

Early retirement

B. Comments from UNA, Unatras and ANCST

(38)

By letter of 4 August 1998, the Italian trade associations
(cid:145)Unione Associativa(cid:146) (UNA) (cid:145)Unione delle Associazioni dei
Trasportatori in conto terzi(cid:146) (UNATRAS) and (cid:145)Associazione
(ANCST)
Nazionale delle Coooperative Servizi e Turismo(cid:146)
submitted their comments on that decision. The Italian
associations are of the opinion that, taking account of
the changes proposed in July 1998 (see point 6),
Law 454/97 and the administrative rules provided for in
the ministerial decrees of implementation both comply
with the Community rules on State aids. Measures
established under the planned scheme are, for various
reasons, not liable to distort competition and to affect
in general,
intra-Community
available to all Community road haulage firms and
intended to attain objectives of common European
interest.

Subsidies

trade.

are,

V. ASSESSMENT

A. Article 87(1)

(39) According to Article 87(1) of the EC Treaty, any aid
granted by a Member State or through State resources
in any form whatsoever which distorts or threatens to
distort competition by favouring certain undertakings or
the production of certain goods is, in so far as it affects
trade between Member States,
incompatible with the
common market.

(42) A State contribution to a self-employed individual who
terminates all business activities does not benefit an
undertaking operating in the market and, therefore, does
not in itself have any impact on competition or trade
between Member States. The Commission considers in
the present case that, if it is ensured that such funds do
not reenter the road haulage sector either directly or
indirectly, the measure does not fall, in principle, under
Article 87(1) of the Treaty.

emphasised

(43) When initiating the procedure under Article 88(2), the
for
efficient
Commission
procedures to ensure that
funds is not
misdirected and that the beneficiary of the aid, together
with his vehicle, does not continue to be active in the
sector, even if not in a self-employed capacity.

the
the use of

need

(44)

(45)

the

(the

obtaining

premium are

related authorisation being

rules have been provided by

The Commission takes note in this respect that detailed
administrative
the
Ministerial Decree of 10 June 1998. Essential conditions
the
retirement
for
commitment
to irrevocably terminate road haulage
activity, with the deletion from the road hauliers’
register
revoked).
Furthermore, beneficiaries are forbidden to practise road
haulage activity for hire or reward, directly or indirectly,
and to be partners or shareholders in road haulage
least 10 years. According to
companies,
for
the
Article 6(4) of
in case of breach of
activity,
to
prohibition
beneficiaries have to repay the amounts received with
interest at a rate determined by law.

at
the Law,
practise

haulage

road

a

sufficient

guarantee

The Commission considers that the foregoing provisions
provide
the planned
contributions will neither be misused nor re-enter the
therefore
road haulage
concludes that contributions provided by the measure at
issue do not constitute State aid within the meaning of
Article 87(1) of the Treaty.

even indirectly.

sector,

that

It

(40) Under the proposed scheme, beneficiary undertakings
receive contributions to costs arising from the transport
of goods while other undertakings, national or from
other Member States, do not receive such contributions.
To that extent
the scheme entails a distortion of
competition and affects intra-Community trade and is
therefore, in principle, incompatible with Article 87(1).

Terminal

(41)

the planned measures, however, appear by
Some of
their particular
to be likely to distort
competition nor to affect intra-Community trade. As far
as they concern road transport,
these measures are
accordingly assessed under Article 87(1) as follows.

features not

real estate and equipment

(46) A State subsidy to road haulage firms for the acquisition
of
the repair and
maintenance of vehicles and for treatment of polluting
waste,
certain undertakings
operating in a specific sector, falls in principle under
Article 87(1) of the Treaty.

intended to favour

for

if

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28.8.1999

(47) However, for several reasons subsidies for the acquisiton
of road terminals under the Italian measure do not
appear to threaten intra-Community competition. The
Italian measure is designed to facilitate the development
of a road transport
infrastructure system, with the
improving efficiency, environmental
general aim of
protection and safety in road transport operations,
whether carried out by Italian hauliers or not. Terminals
are intended as
to all
hauliers on a market basis as a part of a (cid:145)network(cid:146) of
territory.
such facilities covering the whole national
Article 2(2) of the Decree on innovation and training
does in fact stipulate that terminals eligible for funding
must be located in line with national and regional
transport planning and their sites must be chosen in
order to minimise environmental impact. Article 2(2)(a)
furthermore guarantees that only facilities which are
open to all potential users, subject to fair conditions and
transparent charges which allow a proper return on
investment, are eligible for subsidies.

structures providing services

(48)

impact

negative

There is also provision for a safeguard clause to prevent
any
under
Article 2(2)(a), last sentence, and (b), of the Decree no
contribution can be granted where the new terminals in
question distort or are liable to distort competition in a
given area or in the relevant market.

competition:

on

shown,

to the

satisfaction of

(49) Any aid under the Decree will be granted only if the
applicant has
the
Committee referred to in Article 8 of Law 454/97, that
the above conditions are satisfied. In this respect the
Commission also notes that the Italian system does not
discriminate against non-resident carriers as, according
to Article 1(1) in conjunction with Article 2(1)(c) of the
Decree, every EC haulier holding a Community licence
may apply directly for the planned contributions.

constitute a sufficient
safeguard to ensure that no
distortive effect on intra-Community competition will
be caused by the measure at
the
Commission will be able to monitor the fulfilment of
such requirements
Italian authorities’
through the
periodical reports on the implementation of the whole
aid scheme.

In addition,

issue.

The Commission accordingly
the
subsidies provided for in the present measure do not
constitute State aid for the purposes of Article 87(1) of
the Treaty.

concludes

that

B. Article 73 (formerly Article 77) of the EC Treaty

(53) Acording to Article 73, aids are compatible with the
Treaty if they meet, inter alia, the needs of coordination
of
transport. The second exception provided for by
Article 73 refers to aid considered as reimbursement for
the provision of public service obligations, which is not
relevant in the present case.

the liberalisation itself

(54) While Article 71 (formerly Article 75) of the EC Treaty
provides the legal basis for liberalising the transport
markets,
is, contrary to other
sectors, based on legislative acts of the Council. The
the
Treaty
transport
largerly
partitioned into national markets.

acknowledges
as
sector

special position of

regulated industry,

the
a

(50)

(51)

at

the

subsidies

In addition,
issue may not be
accumulated with any other contribution received for
the same reasons from public bodies nor with any
subsidy provided for in the other decrees implementing
Law 454/97 (last sentence of Article 2(3) of the Decree).

Finally, Article 6(3) of the Law,
in conjunction with
Article 7(1) of the Decree, provides that, in the event of
misuse of the funds received, beneficiaries must repay
the sums received with interest at the rate laid down by
law and are liable to be struck off the road hauliers’
register.

(55)

No

(EC)

543/97 (16),

Regulation (EC) No 1107/70 of the Council of 4 June
1970 on the granting of aids for transport by rail, road
and inland waterway (15), as last amended by Council
the
Regulation
Commission’s power of discretion and leaves
the
Member States with a greater possibility to grant State
aid restricting competition than under the general rules
laid down by Article 87. That Regulation sets out the
to (f)
scope of Article 73 and in its Article 3(1)(a)
defines aids which fulfil the coordination requirements
of transport.

reduces

(56) Until 31 December 1997, Article 3(1)(e) of Regulation
(EEC) No 1107/70, as amended, provided for a specific
framework for
aid to combined transport. Under
Article 3(1)(e), aid for investment in infrastructure or
for
the

and movable

necessary

facilities

fixed

(52)

The Commission holds the view that the above prior
conditions and restrictions, together with the penalties
provided for by the Law and in the relevant Decree

(15) OJ L 130, 15.6.1970, p. 1.
(16) OJ L 84, 26.3.1997, p. 6.

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applicable. The market

transhipment was allowed. However, this Regulation is
for providing
no longer
combined transport services has been fully liberalised
since 1 July 1993 through Articles 2 and 4 of
Directive 92/106. Any Community legal person is free,
under the general rules of the Treaty on freedom of
establishment and freedom to provide services, to offer
the
combined
in
services
Community. Any aid to combined transport
from
1 January 1998 onwards has, therefore, to be assessed
under the relevant Treaty provisions (17).

anywhere

transport

(57)

(58)

(59)

the

In the past, Article 3(1)(d) of Regulation (EEC)
No 1107/70 provided an exception for certain measures
on the restructuring of transport markets under certain
conditions. However, the scope of the provision was
restricted in time until
entry into force of
Community rules on access to the transport market. The
relevant
road
transport markets
to intra-Community competition
entered into force on 1 July 1990 following the
approval of Council Regulation (EEC) No 4059/89 of
21 December 1989 laying down the conditions under
which non-resident carriers may operate national road
haulage services within a Member State (18).

legislation which opened up national

Indeed,

The concept of aid meeting transport coordination
needs implies government intervention in the transport
sector. The further a sector is liberalised, the less there is
a need for coordinating activities to be undertaken by
the Member States.
in a liberalised transport
market coordination may be achieved to a certain extent
by the market itself, within the limits of the framework
conditions set by the Member States in accordance with
Community law enacted under Article 71 of the Treaty.
This interpretation is confirmed by the wording of
Article 3(1)(d) of Regulation (EEC) No 1107/70, which
links the application of the exception to the entry into
force of Community measures liberalising the market.

In conclusion,
No 1107/70 does not provide
any
exceptions applicable to the proposed measures.

in the present case Regulation (EEC)
specific

for

(60) As stated above, the direct application of Article 73 of
the Treaty has to be seen in close connection with the
liberalisation in the sector. The higher the
status of
degree of liberalisation already achieved, the less State
intervention to (cid:145)coordinate(cid:146) transport is necessary and

(17) In this connection, see Commission Decisions of 27.3.1996, case
NN 97/95 (OJ C 123, 26.4.1996, p. 9), and of 22.10.1997, case
N 79/97, (OJ C 377, 12.12.1997, p. 3).

(18) OJ L 390, 30.12.1989, p. 3. This Regulation was repealed by the
the European Communities for reasons of
the entry into force of

Court of
form, but
Regulation (EEC) No 3118/93 (OJ L 279, 12.11.1993, p. 1).

remained in force until

Justice of

may be covered by the scope of Article 73. As
liberalisation of combined and road transport has
already been decided and to a very high extent achieved,
the application of Article 73 in these sectors
is
consequently very limited. The measures proposed by
title indicates, clearly aim at
Law 454/97, as
promoting the development of the economic prospects
of a sector, which is dealt with by another provision of
the Treaty. The measures are not based on defined
objectives as regards the co-ordination of transport in
the public interest.

its

In this advanced state of liberalisation, State subsidies
may still be granted,
in particular, when serving the
purpose of the development of a sector. With regard to
the present case, the proposed measures are, therefore,
assessed under the relevant articles of the Treaty.

C. Article 87(2) and (3)

(61)

issue,

In the case at
the exceptions provided for in
Article 87(2) are not applicable because the aid scheme
is not directed towards the attainment of the objectives
set out. According to those objectives aid is (cid:145)compatible
with the common market(cid:146)
is granted either to
individuals for social purposes, or to compensate for
damages caused by natural disasters or exceptional
occurrences, or for effects of the division of Germany.

it

if

(62) Under Article 87(3)

such aid may therefore be
In
considered compatible with the common market.
order to ensure the proper functioning of the common
in
market
regard to the principles
competition matters established by the Treaty,
the
in that provision must be
exceptions provided for
construed narrowly when aid measures are assessed.

and having

exempts

aid which promotes

Article 87(3)(a)
the
development of areas with economic difficulties and a
special need for assistance. The exception cannot be
considered relevant for aid schemes without a regional
the
element (cid:151) in this case the whole territory of
Member State is covered (cid:151) and with a clear sectoral
objective.

in
With regard to the
intended to
Article 87(3)(b),
promote
common
European interest or to remedy a serious disturbance in

execution of a project of

exceptions provided for

issue is not

the aid at

the

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28.8.1999

the Italian economy, nor does it have any features of
such projects.

more balanced modal split (20). The development of
is thus in the common interest
combined transport
within the meaning of Article 87(3)(c) (21).

to facilitate

Article 87(3)(c) provides for an exception relating to aid
granted
certain
economic activities and where the aid measures do not
adversely affect trading conditions to an extent contrary
to the common interest.

the development of

(63)

In conclusion, the Commission considers that the State
aid measures notified in the given case, except for the
measures already examined above, should be assessed
under Article 87(3)(c).

Combined transport

(64)

The Law in conjunction with the Ministerial Decree on
incentives for combined transport provides for several
measures
to foster combined transport, which are
assessed below.

(65)

(66)

transport

The Law and the Decree now provide for a definition of
in line with Article 1 of
combined
Directive 92/106. There is no further generic mention,
such as
in the Decree, of
in the Law or
(cid:145)intermodality
the
(cid:145)multimodal(cid:146).
or
(cid:146)
Commission is able to assess whether these measures
to the goals of Community combined
contribute
transport policy.

terms
Therefore,

The Community has for some time pursued a policy of
achieving a balanced intermodal transport system, and
fostering the competitiveness of combined vis-(cid:224)-vis road
transport is part and parcel of this policy. The central
aim of the EC combined transport policy is to promote
a shift from road to other transport modes. Community
instruments such as Directive 92/106 aim at fostering
the development of combined transport. Article 1 of
Council Regulation 2196/98 of 1 October 1998
concerning
financial
assistance
for actions of an innovative nature to
promote combined transport (19) states that its objective
is fostering actions leading to increased use of combined
transport. The Commission Green Paper on Fair and
Efficient Pricing and the Commission White Paper on
for Infrastructure Use also advocate a
Fair Payment

granting of Community

the

(19) OJ L 277, 14.10.1998, p. 1.

the

shown,

to the

satisfaction of

combined transport operations. Further,

(67) Any aid under the Decree will be granted only if the
applicant has
the
Committee referred to in Article 8 of the Law, that the
investment will contribute to efficient and economically
viable
the
applicant is required to provide a substantial financial
(Article 3(2)
contribution to
in
investment
the Decree). The
conjunction with Article 3(5) of
substantial
financial contribution of applicants for a
low-interest loan under Article 2(1) of the Decree is as a
rule ensured by the low aid intensity: under Article 5(1)
of the Law, low-interest loans covering up to 60 % of
investment costs may not exceed ITL
the overall
1,5 billion (approximately EUR 774 700). According to
Article 2(4) of
aid cannot be
accumulated with other aid received in the same
capacity from public
authorities. Nor may it be
accumulated with similar types of subsidy provided for
by other provisions of the Law.

the Decree,

this

(68) Aid to purchase transport units for combined transport
under Article 2(1)(c) of the Law and Article 2(1)(a) of
the Decree is to be qualified as investment aid within
the meaning of Article 87(1) of the Treaty. Maritime
containers (ISO series 1) may not be funded under the
decree. As Article 3(3) of the Decree states, the funding
for equipment may not exceed the difference in cost
between a combined transport unit and a corresponding
road transport unit, and may not, in any event, exceed
30 % of the total costs of investment.

The Commission considers that this aid complies with
Article 87(3)(c) of the Treaty. As the Commission has
already pointed out on another occasion (22), investment
aid for combined transport units may be allowed under
certain conditions, which are fulfilled by the Decree.
The aid is designed for combined transport units only,
and not standard maritime containers, which are mostly
to be defined as combined
used in operations not
transport. Overfunding and misuse of
funding is
excluded by the fact
that, even with the subsidy, a
combined transport unit will not be cheaper than a
corresponding road unit. Further, the Commission notes
that Article 5(1)(a) of Regulation (EC) No 2196/98
allows a Community contribution of up to 30 % of total
leasing or
eligible

inter alia,

regarding,

costs

the

(20) COM(95) 691, 20.12.1995; COM(98) 466, 22.7.1998.
(21) In this connection, see Commission Decisions of 25.3.1998 (OJ
C 211, 7.7.1998 (cid:151) see Note 1 above), and of 21.1.1997,
case C 2/97 (cid:151) Netherlands (OJ C 93, 22.3.1997, p. 11).

(22) Commission Decision of 22.10.1997,
Netherlands (OJ C 377, 12.12.1997, p. 3).

case N 79/97 (cid:151)

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intermodal

the Commission considers that
to the development of

transport units. For these
depreciation of
this measure
reasons,
contributes
sector of
combined transport activities and does not, because of
the
conditions
contrary to the common interest. It is thus covered by
Article 87(3)(c).

safeguards

included,

trading

affect

the

(70) Under Article 2(1)(c) of the Decree, low interest loans
may also be given for the construction and purchase of
terminals
for combined transport. The Commission
considers that these loans do not constitute State aid
under Article 87(1).

(69) Article 2(1)(b) of the Decree provides for the investment
aid within the meaning of Article 87(1) concerning
transhipment equipment for intermodal transport units.
Article 3(4) of the Decree limits the aid intensity to
total eligible investment costs. Transhipment
30 % of
equipment is essential for the smooth functioning of the
combined transport chain. On the other hand, 30 % of
the costs of the intermodal transport chain is linked to
costs arising in transhipment. Therefore, State aid to
transhipment equipment helps to reduce the system
costs of combined transport and thus improves its
competitiveness in relation to road transport.

rates which allow cost

First, Article 2(3)(a) of the Decree states that all terminal
construction projects benefiting from low-interest loans
must be open to all operators on equal terms and at
transparent
recovery. The
terminals are thus open to all potential users under
non-discriminatory conditions, and therefore do not
raise State aid issues. Second, low-interest loans may not
be granted under Article 2(3)(a) and (b) of the Decree if
the terminal has a negative impact on competition with
other terminals. This condition ensures that loans will
not affect
trade between Member States within the
meaning of Article 87(1).

vis-(cid:224)-vis

common

interest
concerning

other
transhipment

The general selection criteria mentioned in Article 3(2)
in conjunction with Article 3(5) of the Decree ensure
that only transhipment equipment contributing to viable
terminal operations will be funded. Further, Article 5(3)
of the Law states that investments funded under the Law
must comply with the relevant competition laws of Italy
and the Community. This reference ensures that only
such transhipment equipment will be funded which
does not cause distortions of competition contrary to
terminals.
the
Furthermore,
equipment
investment
related to newly constructed terminals,
Article 2(3) of the Decree will apply and thus ensure
that State aid will not be given to investment which
distorts competition. The Commission also notes that
the maximum aid intensity is similar to that provided
for in Article 5(1)(c) of Council Regulation 2196/98
financial
concerning
for actions of an innovative nature to
assistance
promote combined transport. Article 5(1)(c) of
that
Regulation limits Community financial assistance to a
maximum of 30 %, notably investment expenditure on
combined transport transhipment equipment. For these
this measure
reasons,
contributes
sector of
combined transport activities and does not, because of
the
conditions
contrary to the common interest. It is thus covered by
Article 87(3)(c) (23).

the Commission considers that
to the development of

granting of Community

safeguards

included,

trading

affect

the

the

(23) See also Commission Decision of 22 December 1998, case

N 598/98 (cid:151) Netherlands (OJ C 29, 4.2.1999, p. 13).

(71)

for monitoring the

Finally, Article 2(1)(d) of the Decree allows low-interest
loans for
the purchase of electronic and computer
systems and equipment for use, control, monitoring and
sales in the combined transport chain. Such loans count
as aid within the meaning of Article 87(1). Electronic
information systems
combined
transport chain are essential for the success of combined
transport. A road haulier can easily track, via the truck
driver and his mobile phone, a long-haul road operation
throughout Europe. An equivalent combined transport
operation would have to track the container and
possibly the rail wagon. This tracking operation has to
be performed taking into account various, sometimes
hardly compatible, information systems used by several
in different Member States. The up-front
operators
investment
in such electronic systems for combined
transport is much higher than the investment needed
for a comparable road operation.

the Commission would consider

Therefore,
State
investment aid for such systems compatible with the
common market under Article 87(3)(c). However,
it
must be
the aid is used only for
information systems relating to the combined transport
chain, and not for general business information or for
other transport operations. The Decree states that the

ensured that

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electronic equipment described in Article 2(1)(d) must
serve the combined transport chain, and the term
(cid:145)combined transport(cid:146) is explicitly and correctly defined
in Article 1(1)(a) of the Decree. For these reasons, the
Commission considers that this measure contributes to
the development of the sector of combined transport
activities and does not, because of
the conditions
mentioned and the low funding intensity, affect trading
conditions in a way which is contrary to the common
interest. It is thus covered by Article 87(3)(c).

Purchase and adaptation of vehicles

(72)

that

The Commission considers
in sectors with
overcapacity, such as road freight transport, no aid can
in principle be granted on any grounds for the purchase
of transport vehicles. The negative effect of such aid on
competition would
be
proportionate to any benefit therefrom.

circumstances

under

no

for

granting

(73) Nevertheless, certain alternatives are compatible with
the overall objectives of environmental protection and
safety. The only possibility
aid in
connection with the purchase of new vehicles is as
compensation for the costs of higher technical standards
on emissions and safety. Those standards have to be
clearly higher than those laid down by national or
Community legislation with which vehicles have to
comply by law in any case. This general principle is
established by the Community guidelines on State aid
to
for
environmental standards and may be developed for
safety standards on the basis of Article 87(3)(c) by
analogy.

protection (24) with

environmental

regard

(74) When initiating the procedure under Article 88(2), the
the Italian
Commission therefore pointed out
measure
or
to subsidise
adaptation of vehicles on the basis of a simple
percentage of the general investment costs could not be
considered compatible with the common market.

the purchase

designed

that

of an amendment to Article 1(2)(a) of draft Law 5527)
and to Article 3(1) of the Decree on innovation and
training, as reported by the Italian letters of 15 and
18 February 1999. Amendments to these provisions are
planned in order to stipulate explicitly that aid for the
purchase of new vehicles and the adaptation of existing
vehicles
standards of
intended to attain higher
environmental protection than those in force under
national and EC law (25). Provided that
the proposed
the Decree on
amendments of Law 454/97 and of
Italian
innovation and training are
measure appears to be consistent with the principles set
out
referred to in
point 73.

in the Community Guidelines

approved,

the

is

The Guidelines provide in this respect that aid granted
to firms located outside assisted areas and not exceeding
30 % of gross eligible investment (40 % for SMEs) may
be considered compatible with the common market.

(76) Under the measure discussed here, low-interest loans for
the purchase of new vehicles are granted at an interest
rate of one third of the reference rate, as defined by the
Italian authorities (Article 2(2)(c) of the Law), i. e. from
around 1,66 to 1,76 % (26). In their letter of 29 January
1999, the Italian authorities contended that, whenever
aid takes the form of
interest relief, the aid amount
must be determined on the basis of two thirds of the
above-mentioned reference rate. In order to determine
the concrete advantage for the borrower from a State
aid viewpoint, however, reference must be made to the
interest rate it would have paid under normal market
conditions. In its Notice of 9 September 1997 (27), the

(25) Article 3(1) of

the laws of

to be taken against air pollution by gases

the Italian Decree refers to higher standards
regarding environmental protection than national or European
standards in force (cid:145)on the date of the Decree(cid:146). Reference should
therefore be made to the limit values for emissions laid down by
Council Directive 70/220/EEC of 20 March 1970 on the
the Member States relating to
approximation of
measures
from
positive-ignition engines of motor vehicles (OJ L 76, 6.4.1970,
p. 1), as amended by Directive 96/69/EC (OJ L 282, 1.11.1996,
p. 64), and Council Directive 88/77/EEC of 3 December 1987 on
the approximation of the laws of the Member States relating to
the measures
the emission of gaseous
pollutants from diesel engines for use in vehicles (OJ L 36,
9.2.1988, p. 33), as amended by Directive 91/542/EEC (OJ L 295,
25.10.1991, p. 1). In this connection it should be noted that the
more stringent emissions limits introduced by Directive 98/69/EC
of the European Parliament and of the Council of 13 October
1998 relating to measures to be taken against air pollution by
emissions
Council
vehicles
Directive 70/220/EEC (OJ L 350, 28.12.1998, p. 1) are to be
applied gradually upon the registration, sale or entry into service
of new vehicles from 1 January 2001.

to be taken against

from motor

amending

and

(75)

The Commission takes note, however, of the announced
amendments to Article 2(1)(c) of Law 454/97 (by means

(24) OJ C 72, 10.3.1994, p. 3.

(26) Depending on the reference rate applied. In the industrial sector,
where the reference rate is currently 5 %, the low-interest rate will
be around 1,66 %. In the craft-trades sector, where the reference
rate is currently 5,3 %, the low-interest rate will be around 1,76 %.
See also point 14 and note 9 above.

(27) See Commission notice on the method for setting the reference

rates (OJ C 273, 9.9.1997, p. 3).

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case

In the present

Commission set out the method to calculate a reference
interest rates on
rate reflecting the average level of
medium and long-term loans (five to 10 years) in the
different Member States.
the
advantage for the recipients may therefore be estimated,
by way of comparison between the interest rate actually
paid and the current reference rate for Italy determined
on the basis of the above criteria, at some 4,4 to 4,5
percentage points (28). This advantage has to be referred
to loans covering up to 70 % of overall investment costs
(Article 2(2)(c) of Law 454/97 and Article 4(1)(b), first
sentence of the Decree). In this respect the last sentence
of Article 4(1)(b) of the Decree explicitly refers to the
Community Guidelines mentioned in point 73 in
stipulating that the aid granted for the purchase of new
vehicles can never exceed the ceiling established therein.

sell

them outside the ECMT area (30).
vehicles or
Beneficiaries must give evidence of the scrapping or sale
of the old vehicle before receiving the subsidised loan.

(79)

The Commission also takes note that Article 1(1)
in
conjunction with Article 3(1) of the Decree allows both
national and non-resident haulage firms to benefit from
the measure at
issue. The Commission accordingly
considers that the present measure does not imply any
potential discrimination against carriers
from other
Member States.

In so far as this latter provision confines aid for the
purchase of new vehicles to the extra environmental
costs (29)to be borne by the recipients, within the
intensities allowed by the Guidelines, the Commission
may find acceptable the aid amounts as determined
above.

(81)

(77) Article 2(1)(d) of

the Law in conjunction with
Article 4(1)(c) of the Decree stipulates that maximum
aid intensity may attain 25 % of adaptation costs, as
duly proved by documents. However, Article 2(2)(d) of
the Law seems to allow a higher intensity to be attained.
The Commission notes in this respect that by letter of
15 February 1999, the Italian Government undertook to
amend Article 2(2)(d) of Law 454/97 in order to make
it consistent with the 25 % ceiling. Provided that the
proposed amendment to Law 454/97 is approved, the
that aid for adaptation of
Commission can accept
vehicles also complies with the intensity ceiling set by
the Guidelines.

(80) Overfunding is excluded by the first

sentence of
Article 3(1) of the Decree, stipulating that the subsidies
in question may not be accumulated with any other
contribution received for the same reasons from public
bodies nor with any subsidy provided for in the other
implementing decrees of Law 454/97.
In addition
(Article 6(3) of the Law in conjunction with Article 7(1)
of the Decree), in case of misuse of the funds received,
beneficiaries
overall
contribution with interest at a rate defined by law and
may be struck off the road hauliers’ register.

obliged

repay

the

are

to

For all the above reasons, the Commission can accept
that
in achieving environmental protection objectives
the aid measure at issue, in its latest version, is designed
to promote the development of transport activities to an
extent compatible with the common market. The
Commission therefore concludes that the measure may
benefit
in
exception
Article 87(3)(c).

from the

provided

for

Training

(78)

The Commission takes note that, in case of purchase of
new vehicles,
for
safeguard rules in order to prevent abandoned transport
capacity re-entering the market. Article 3(2) of
the
Decree introduces the obligation to scrap the replaced

the Ministerial Decree provides

(28) The reference rate as defined in the 1997 notice is periodically
therein. The
revised in accordance with the methods set out
five-year reference rate (relevant
to the present case) currently
applicable in Italy is 6,18 % from 1 January 1999, in accordance
with the latest update of 3 March 1999.

(29) The Guidelines define such costs as (cid:145)additional investment costs
for attaining the objectives of environmental protection(cid:146) and
further specify that costs eligible for environmental protection aid
(cid:145)exclude
to
environmental protection(cid:146) (see point 3.2.1 of the Guidelines).

investments not

attributable

costs of

general

to

adapt

(82) Aid compensating for training costs to be borne by
enterprises
economic
to
environment may be regarded as one of several means
of improving the employment situation and, therefore,
the Commission may consider it compatible with the
common market on the basis of Article 87(3)(c).

changing

a

(83) When

the
Commission pointed out that, apart from aid intensity,

procedure,

however,

initiating

the

(30) The European Conference of Ministers of Transport (ECMT) is an
intergovernmental body set up by an agreement signed in Brussels
on 17 October 1953. The current members of
the ECMT
comprise all 15 EU countries and many other central and east
European countries.

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appeared

the Italian law failed to provide any further specification
on the measure at issue, and consequently the measure
itself
its
compatibility with the common market. In this respect,
the Commission notes that detailed rules and conditions
Italian
by
have
Government in the implementing decrees.

been subsequently planned

insufficiently

assess

clear

the

to

(84)

(85)

Eligible training activities listed in Article 5(1) of the
Decree on innovation and training appear not only
linked to the organisational restructuring operations of
the concerned firm and to its adaptation to new
technologies, but also intended to acquire general skills
and qualifications in the transport business. In this light,
it can be accepted that the measure involves general
training projects intended to facilitate the development
of
sector within the meaning of
transport
Article 87(3)(c) of the Treaty.

the

the

The measures in question cover up to 50 % of training
costs. When initiating the procedure, the Commission
noted that an aid intensity of 50 % for all undertakings
seemed too high to be considered compatible with the
Community
common market. Nevertheless,
framework on training aid which has meanwhile
entered into in force (31)
lays down in this respect a
maximum aid intensity for general training expenditure
outside assisted areas of 50 % of the eligible costs for
large firms and of 70 % for SMEs. In fact, information
supplied by the Italian authorities in their letter of
16 July 1998 as well as official transport statistics show
that,
among national hauliers, potential
recipients are in most cases small or even very small
enterprises (32). As for aid intensity, a maximum ceiling
of 50 % of eligible costs therefore seems reasonable to
the Commission in the light of the above-mentioned
circumstances.

least

at

in principle,

assist undertakings in carrying out
training activities
the
may,
serve
development of a specific sector, and therefore be
compatible with
under
Article 87(3)(c).

common market

considered

the

be

to

(88) However, the wording of the relevant legal texts, and
especially of Article 2(1)(a) and (b) of the Decree on
innovation and training, was too general to allow the
Commission to conclude that the related aid provisions
were intended to support specific training activities.

(89)

In their letter of 29 January 1999, the Italian authorities
stressed that the aid measure at issue has the sole aim of
encouraging road haulage firms whose staff is involved
in training activities to purchase equipment to study
and practice new technologies in the field. In this light,
the Italian Government announced the revision of
Article 2(1)(a) and (b) in order to clarify the breadth and
scope of the aid provisions concerned.

The Commission takes note in this respect of the draft
Ministerial Decree amending the Decree on innovation
and training, forwarded by note of 18 February 1999
from the Italian Permanent Representation. On the basis
of the proposed amendments, support for the purchase
of computers under the Italian measure can now be
seen in direct connection with the provisions on aid to
training examined above.
the new text of
Article 2(1)(a) of the Decree on innovation and training
only allows aid for the purchase of (cid:145)computer systems
and hardware for use in the training activities provided
for by Article 5 [of
for innovation in
business management methods and in computerised
data interchange systems(cid:146), whereas Article 2(1)(b) will be
repealed.

the Decree]

In fact

Provided that the above amendments are approved, the
Commission accepts that
the Italian measure under
discussion, in favouring the purchase of equipment for
use in training activities, may help the firms concerned
to adapt to innovative technologies and to make the
necessary organisational changes. The measure contains
an essential training component and has accordingly to
be assessed under
criteria laid down in the
the
Framework on training aid currently in force (33).

The Framework allows aid for general training projects
up to 50 % of eligible costs, plus a further 20 percentage
points for SMEs. In so far as it is intended for use in
training activities, computer equipment may be eligible
for aid under the Framework.

(86)

In conclusion, the Commission holds the view that the
measure in question is compatible with the common
market under Article 87(3)(c).

(90)

Purchase of computer systems and equipment

(87) With reference

the Commission
to this measure,
considers that an investment-linked aid designed to

(91)

(31) OJ C 343, 11.11.1998, p. 10.
(32) According to the Italian authorities some 60 % of Italian hauliers
have no more than two vehicles and some 20 % have three to five
vehicles.

(33) See point 85 and footnote 31.

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Official Journal of the European Communities

L 227/25

(92) As for aid intensity,

the Commission notes that

the
Italian measure provides for low-interest loans at one
third of the reference interest rate, as defined by the
(Article 2(2)(a) of
Italian authorities
the Law and
Article 2(1)(a) of
the Decree), namely approximately
1,66 to 1,76 % (34). Following the criteria stated in the
1997 Notice on reference and discount rates (35), the
concrete advantage for the borrower in comparison
with interest rates applied in normal market conditions
may be estimated at some 4,4 to 4,5 percentage points.
The Commission holds the view that such advantage,
referred to loans covering up to 75 % of the overall
investment costs (Article 2(2)(a) of Law 454/97 and
Article 4(1)(a), part two, of the Decree), can never attain
the ceiling established by the Framework.

(93)

The substantial financial contribution by the applicant
of a low-interest loan under Article 2(3) of the Decree is
as a rule ensured by the low aid intensity. Overfunding
is excluded by Article 2(3) of the Decree, stipulating
that the subsidies in question cannot be accumulated
with any other contribution received for
the same
from public bodies nor with any subsidy
reasons
in the other
provided for
implementing decrees of
Law 454/97.
In addition, Article 6(3) of the Law in
conjunction with Article 7(1) of the Decree stipulates
received,
that,
beneficiaries
overall
contribution plus interest at a rate laid down by law and
are liable to be struck off the road hauliers’ register.

in case of misuse of
to

the
repay

obliged

funds

the

are

(94)

In the light of the above, the Commission takes the
view that the Italian safeguard rules for granting the
contributions are sufficient to ensure a proper use of the
funds
likely to keep any distortion of
competition at a reasonably low level.

and are

(95)

that Article 1(1)

the Commission notes

Finally,
in
conjunction with Article 2(1)(a) of the Decree allows
both national and non-resident haulage firms to benefit
from the measure at issue. It accordingly considers that
imply any potential
the present measure does not
discrimination against carriers
from other Member
States.

(96)

In conclusion, the Commission is of the opinion that
the measure may benefit from the exemption laid down
in Article 87(3)(c).

(34) See footnote 26.
(35) See point 76 and footnote 27.

Capacity reduction measure

(97)

The Commission takes note in this respect that by letter
of 22 January 1998 the Italian Government withdrew
the notification of Article 3(7) and (8) of Law 454/97
containing incentives for capacity reduction in the road
haulage sector.

The Commission therefore concludes that no decision is
required in this connection.

Mergers and associations

(98)

The Commission takes note in this respect that by letter
of 29 April 1999 the Italian authorities withdrew the
notification of the measures providing for incentives for
mergers and associations between road haulage firms
containd in Law 454/97.

The Commission therefore concludes that no decision is
required in this connection.

VI. CONCLUSIONS

(99)

In the light of all the above considerations, the measures
established by the Italian scheme under discussion either
appear not to constitute State aid within the meaning of
can be declared
Article 87(1) of
the Treaty or
compatible with the common market pursuant
to
Article 87(3) of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1

1.
Contributions provided for in Article 3(1) to (5) of Italian
Law No 454/97 of 23 December 1997, as amended, and in
the Italian Decree of 10 June 1998 for the early retirement of
single-vehicle road hauliers do not constitute State aids within
the meaning of Article 87(1) of the EC Treaty or Article 61(1)
of the EEA Agreement.

for

the

Subsidies

construction of

terminals
road
2.
according to Article 2(1)(b) of
the Italian Law No 454 of
23 December 1997, as amended, and Article 2(1)(c) and (d),
2(2), 2(3) and 4(1)(a) of the Italian Decree of 14 October 1998
on incentives for investments in innovation and training, as

L 227/26

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Official Journal of the European Communities

28.8.1999

amended, do not constitute State aids within the meaning of
the EEA
Article 87(1) of
Agreement.

the Treaty or Article 61(1) of

compatible with the common market under Article 87(3)(c) of
the EC Treaty and Article 61(3)(c) of the EEA Agreement.

Article 2

1.
Subsidies to road haulage firms for the purchase of
combined transport units, the purchase of combined transport
equipment and the purchase of electronic equipment dedicated
to monitoring, control, use and sales
in the combined
transport chain according to Article 2(1)(b) and 5 of Italian
Law No 454/97 of 23 December 1997, as amended, and
according to Article 2(1)(a), (b) and (d) of the Italian Decree of
14 October 1998 are compatible with the common market
according
and
to Article 87(3)(c) of
Article 61(3)(c) of the EEA Agreement.

EC Treaty

the

Contributions for the construction of combined transport
2.
terminals under Article 5 of
Italian Law No 454/97 of
23 December 1997, as amended, and under Article 2(1)(c) of
the Italian Decree of 14 October 1998 on incentives for
combined transport do not constitute State aid within the
meaning of Article 87(1) of the EC Treaty or Article 61(1) of
the EAA Agreement.

Article 3

Subsidies for the purchase and adaptation of vehicles
1.
under Article 2(1)(c) of Italian Law No 454 of 23 December
1997, as amended, and Articles 3 and 4(1)(b) of the Italian
Decree of 14 October 1998 on incentives for investments in
innovation and training, as amended, are compatible with the
common market within the meaning of Article 87(3)(c) of the
EC Treaty and Article 61(3)(c) of the EEA Agreement.

2.
Aid to training activities under Article 2(1)(e) of Italian
Law No 454 of 23 December 1997, as amended, and Article 5
of the Italian Decree of 14 October 1998 on incentives for
is
investments

in innovation and training, as amended,

Subsidies for the purchase of computer systems and
3.
equipment under Article 2(1)(a) of
Italian Law No 454 of
23 December 1997, as amended, and Articles 2(1)(a) and
4(1)(a) of the Italian Decree of 14 October 1998 on incentives
for investments in innovation and training, as amended, are
compatible with the common market within the meaning of
Article 87(3)(c) of the EC Treaty and Article 61(3)(c) of the
EEA Agreement.

Article 4

1.
Italy informs the Commission that is has approved the
amendments to Law No 454 of 23 December 1997 set out in
draft Law No 5527 of 17 December 1998, further amended
Italian authorities of
according to the
15 February 1999, and the amendments to the Decree of
14 October 1998 on incentives for investments in innovation
and training set out in the draft Ministerial Decree forwarded
on 18 February 1999.

from the

letter

2.
Italy shall provide the Commission with annual reports
on the implementation of the measures established by Law
No 454 of 23 December 1997, as amended, and the related
Ministerial Decrees, as amended. The first report shall be
updated to 31 December 1999 and be furnished by 31 January
2000.

Article 5

This Decision is addressed to the Italian Republic.

Done at Brussels, 4 May 1999.

For the Commission

Neil KINNOCK

Member of the Commission