2000/257/EC: Council Decision of 20 March 2000 concerning aid granted in Italy by RIBS SpA in accordance with the provisions of national law No 700 of 19 December 1983 on the restructuring of the sugar beet sector
Date: 2000-03-20
Institutions: Council of the European Union
Subjects: Italy, State aid, aid system, application of EU law, sugar beet, sugar industry

L 79/38

EN

Official Journal of the European Communities

30.3.2000

COUNCIL DECISION

of 20 March 2000

concerning aid granted in Italy by RIBS SpA in accordance with the provisions of national law No
700 of 19 December 1983 on the restructuring of the sugar beet sector

(2000/257/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the request put forward by the Government
of the Italian Republic on 4 January 2000,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

Article 46 of Council Regulation (EEC) No 1785/81 of
30 June 1981 on the common organisation of
the
markets in the sugar sector (1) authorise: (i) the granting
of adjustment aid to producers of sugar beet and, should
the case arise, to producers of sugar; (ii) adjustment of
that aid where this is necessitated by exceptional require-
ments connected with plans for restructuring the sugar
sector in Italy.

By national law No 700 of 19 December 1983 on the
restructuring of the sugar beet sector, Italy set up the
public funding body RIBS SpA instructing it to disburse
aid to sugar producers in connection with the restruc-
turing plans, basically in the form of participatory credit.

Pursuant to Article 46 of Regulation (EEC) No 1785/81
and subsequent amendments thereto, Italy drew up two
general plans to restructure and convert the sugar beet
sector during the period 1984/1985 to 1995/1996
which the Commission approved in decisions communi-
cated in letters SG(84) D/6750 of 23 May 1984 and
SG(91) D/11490 of 20 June 1991.

those general

restructuring plans,

Under
the Italian
Republic implemented a series of specific interventions
for certain undertakings which where approved by the
Commission and which enabled a start to be made on
substantial, effective restructuring in this sector.

Furthermore, some interventions were made without
being notified within the meaning of Article 88(3) of the
Treaty.

Following the infringement proceedings in respect of
RIBS interventions in favour of Celano (Nusam SpA and
Sadam Abruzzo SpA) and Castiglion Fiorentino (Sadam
the Commission
Castiglionese

SpA) undertakings,

(1) OJ L 177, 1.7.1981, p. 4. Regulation repealed and replaced by

Regulation (EC) No 2038/1999 (OJ L 252, 25.9.1999, p. 1).

(7)

(8)

(9)

(10)

adopted a partly negative decision C(1999) 1363 of 11
May 1999 which was the subject of an appeal to the
Court of Justice of the European Communities by the
Italian Government.

The Commission initiated infringement proceedings
concerning the inteventions in favour of the Ostellato
undertaking (CO.PRO.B undertaking), communicated in
its letter SG(96) D/1257 of 11 January 1996.

The Italian Government took steps in August 1999 to
notify the following interventions: (a) Specific plan for
PONTECO, (b) Specific plan for COMAGRI, (c) Renego-
tiation of loan to COPROB, (d) Renegotiation of loan to
SADAM-SECI, (e) Renegotiation of loan to ISI.

The Italian Government also informed the Commission
of
the specific plan for SPAI SpA, concerning the
processing sector, approved on 25 March 1992 in
accordance with the general plan to restructure and
convert the sugar beet sector during the period 1991 to
1996 which allowed the possibility of financing agro-
food activities in areas where it had become necessary to
close sugar refineries. The specific plan for SPAI SpA
was subsequently revoked on 11 October 1994.

The interventions referred to in recitals 6, 7 and 8 are, in
terms of objectives and results, essentially the same as
the previous interventions under the general restruc-
turing plans approved by the Commission. These inter-
ventions are necessary with a view to the completion of
the restructuring process in this sector, and failure to
approve them would compromise the reorganisation of
the sector and jeopardise the economic equilibrium of
several thousand smallholdings operating in the different
beet production areas.

(11)

The amount of aid granted over the period 1984 to
1992 to the sugar-producing undertakings referred to in
recitals 6, 7 and 8 totals EUR 66,9 million, with an
annual average impact of approximately 0,5 % of the
intervention price for sugar, the effect on competition
and intra-Community trade being quite negligible.

(12)

The aid granted concerns nearly all
industrial groups
operating in the sector, which represents an agricultural
area of some 265 000 hectares and some 65 000 hold-
ings in sugar beet production zones.

30.3.2000

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Official Journal of the European Communities

L 79/39

The SPAI SpA is currently in liquidation and the RIBS
has made itself a party to the bankruptcy proceedings.

— renegotiation of the ISI loan of 2 August 1991 equivalent

to a gross subsidy of EUR 20 370 000;

(13)

(14)

There are therefore exceptional circumstances which
make it possible to classify the aid granted by the Italian
Government as compatible with the common market
under the conditions provided for by this Decision,

HAS ADOPTED THIS DECISION:

Article 1

1.
The following aid provided by the public funding body
(RIBS SpA) shall be considered compatible with the common
market:

— specific plan for PONTECO of 19 December 1989 equiva-

lent to a gross subsidy of EUR 5 297 000,

— specific plan for COMAGRI of 21 September 1990 equiva-

lent to a gross subsidy of EUR 15 920 000,

— renegotiation of the COPROB loan of 25 March 1992

equivalent to a gross subsidy of EUR 2 286 000,

— renegotiation of the SADAM-SECI loan of 25 March 1992

equivalent to a gross subsidy of EUR 376 000,

— aid for the COPROB of 28 June 1990 in infringement
proceedings equivalent to a gross subsidy of EUR 847 000.

The intervention by RIBS SpA on 25 March 1992 in
2.
favour of SPAI SpA equivalent
subsidy of
EUR 8 567 000 shall also be considered compatible with the
common market.

to a gross

The Italian Government shall be authorised to grant reci-
3.
pients of aid which were the subject of partly negative decision
C(1999) 1363 of 11 May 1999 aid equivalent to the sums they
would have to refund.

This Decision is addressed to the Italian Republic.

Article 2

Done at Brussels, 20 March 2000.

For the Council

The President

L. CAPOULAS SANTOS