2006/218/EC: Commission Decision of  5 July 2005  on the aid scheme which Italy is planning to implement for the protection of bergamots and bergamot derivatives in Calabria  (notified under document number C(2005) 1814)
Date: 2005-07-05
Institutions: European Commission
Subjects: Italy, State aid, citrus fruit, control of State aid, production aid

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COMMISSION DECISION

of 5 July 2005

on the aid scheme which Italy is planning to implement for the protection of bergamots and
bergamot derivatives in Calabria

(notified under document number C(2005) 1814)

(Only the Italian text is authentic)

(2006/218/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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

Having called on interested parties to submit their comments
pursuant to that Article,

Whereas:

I.

PROCEDURE

(1) By letter dated 20 January 2000, registered as received on
25 January 2000, the Italian Permanent Representation
to the European Union notified the Commission,
pursuant to Article 88(3) of the Treaty, of a draft law
laying down standards for the protection of bergamots
and bergamot derivatives.

(2) By letter dated 14 March 2000, the Commission asked
information con-

the Italian authorities for additional
cerning the aid provided for in the draft law.

(3) By letter dated 15 March 2000, registered as received on
28 March 2000, the Italian Permanent Representation to
the European Union sent the Commission an extract
from the Gazzetta ufficiale della Repubblica Italiana showing
that the draft law concerned had been published as Law
No 39 of 25 February 2000 (hereafter Law No 39)
together with a note from the Italian authorities stating
that
to
the grant of
Commission approval.

the proposed aid was subject

(4) By letter dated 5 June 2000, registered as received on
9 June 2000, the Italian Permanent Representation to the
European Union sent the Commission the additional
information requested from the Italian authorities by
letter of 14 March 2000.

(6) By letter dated 17 July 2000, registered as received on
25 July 2000, the Italian Permanent Representation to
the European Union forwarded to the Commission the
Italian authorities’ reply to the above letter of 28 June
2000.

(7) By letter dated 6 October 2000,

the Commission
informed Italy of its decision to initiate the procedure
pursuant to Article 88(2) of the EC Treaty in respect of
the aid provided for in Law No 39 (the decision itself was
taken by the Commission at its meeting on 20 September
2000).

(8) The Commission decision to initiate the procedure was
published in the Official Journal of the European Commu-
nities (1). The Commission called on interested parties to
submit their comments on the aid in question.

(9) The Commission did not receive any comments from

interested parties.

II.

DESCRIPTION

(10) Article 4 of Law No 39 provides for aid in relation to the
area cultivated and the quantities of bergamots actually
delivered to be granted to agricultural enterprises,
individual growers or associations and other persons
cultivating bergamots. Detailed rules and procedures for
the grant of the aid must be laid down by Order of the
after
Minister of Agriculture
consulting the Region of Calabria,
the Bergamot
Consortium, the most representative industry associa-
tions, the Reggio Calabria establishment for research into
citrus species and derivatives and the Acireale Citrus
Research Institute. The budget earmarked for financing
the aid amounts to ITL 2 billion (EUR 1 032 914).

and Forestry Policy,

(5) After considering this information the Commission
requested new information from the Italian authorities
by letter dated 28 June 2000.

(1) OJ C 380, 30.12.2000, p. 2.

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(11) Article 6(1) and (2) of Law No 39 provides for aid for the

implementation of plans geared to:

III.

INITIATION OF THE PROCEDURE PURSUANT TO

ARTICLE 88(2) OF THE TREATY

(a)

expanding the cultivation of bergamots in place of
other citrus species;

(16) The Commission initiated the procedure pursuant to
Article 88(2) of the Treaty because of doubts about the
compatibility of the scheme with the common market.
The doubts concerned the following:

(b)

thinning and grafting combined or not with
thinning operations;

(17)

(c)

the development of nurseries and the mechanisa-
tion of holdings;

(d)

the construction of farm buildings;

in the

In general, instead of answering the specific questions
that had been put to them, the Italian authorities replied
that only measures provided for
regional
operational programme within the meaning of Council
Regulation (EC) No 1260/1999 of 21 June 1999 laying
down general provisions on the Structural Funds (2), as
approved by the Community authorities, would qualify
for aid. At the time this information was provided, the
programme in question was still under consideration and
it was not possible to say what its content would be
when approved.

(e)

small- and medium-scale infrastructure work in
order to lower production costs and encourage the
resumption of cultivation;

(18) With regard to Article 4:

(f)

the construction of processing and marketing
facilities;

(g)

studies, research and technical assistance;

(h) promotional activities in the commercial sector.

(12) The plans may be submitted by the Bergamot Con-
sortium, municipalities located in the areas referred to in
the register of areas where bergamots are grown and
individual growers or associations in those areas.

(13) The aid, in the form of capital grants, may amount to
75 % of eligible expenditure, up to a total of ITL 6 billion
(EUR 3 098 742)
in 2000 and ITL 3 billion (EUR
1 549 371) in each year from 2001 to 2004.

(14) Article 6(3) of Law No 39 provides also for aid to
implement plans for the provision of electricity supplies
and plans presented by municipalities for repairing roads
serving holdings
in cultivating
bergamots, to improve access and encourage mechan-
isation.

engaged primarily

(15) The budget earmarked for financing this aid is ITL 4
billion (EUR 2 065 828) in 2000 and ITL 2 billion (EUR
1 032 914) in each year from 2001 to 2004.

(a)

(b)

the proposed aid based on the quantity of
bergamots delivered appeared to constitute operat-
ing aid which is incompatible with the common
market, as indicated in point 3.5 of the Community
guidelines for State aid in the agricultural sector (3);
yet the Italian authorities had never given an express
undertaking to withdraw it despite the request to
this effect by the Commission in its letter of
14 March 2000 (see the reply referred to in recital
17);

the proposed aid based on the area cultivated had
been presented as an agri-environmental measure
but the Italian authorities failed to provide any
information showing that the provisions of Arti-
cles 22, 23 and 24 of Council Regulation (EC)
No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Gui-
dance and Guarantee Fund (EAGGF) and amending
and repealing certain Regulations (4), Articles 12 to
20 of Commission Regulation (EC) No 1750/1999
of 23 July 1999 laying down detailed rules for the
application of Regulation (EC) No 1257/1999 on
support for rural development from the European
Agricultural Guidance
Fund
(EAGGF) (5), and point 5.3 of the Guidelines, would
be complied with.

and Guarantee

(2) OJ L 161, 26.6.1999, p. 1. Regulation as last amended by
Regulation (EC) No 173/2005 (OJ L 29, 2.2.2005, p. 3).

(3) OJ C 232, 12.8.2000, p. 17.
(4) OJ L 160, 26.6.1999, p. 80. Regulation as last amended by
Regulation (EC) No 2223/2004 (OJ L 379, 24.12.2004, p. 1).
(5) OJ L 214, 13.8.1999, p. 31. Regulation as last amended by

Regulation (EC) No 1763/2001 (OJ L 239, 7.9.2001, p. 10).

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(19) With regard to Article 6(1) and (2):

IV.

COMMENTS OF THE ITALIAN AUTHORITIES

(a)

in the absence of details of the nature of the eligible
expenditure, certain aid could be operating aid;

(b)

(c)

(d)

(e)

the rate envisaged (75 %) was too high for the
measures for the production of bergamots; nor was
evidence produced of compliance with point 4.1 of
the Guidelines
the
holdings or enterprises and the existence of outlets;

regarding the viability of

the infrastructure referred to was not sufficiently
it could concern
well defined: some parts of
individual holdings and be subject to point 4.1 of
the Guidelines, which provide for rates of aid of less
than 75 %;

as regards the processing of bergamots and the
marketing of the oil obtained (non-Annex I pro-
duct), compliance with the rates of aid and other
provisions laid down by the Guidelines on national
regional aid (6) and those on State aid for small and
medium-sized enterprises (7) was not demonstrated;

as regards research and technical assistance, com-
pliance with points 13 and 14 of the Guidelines had
not been demonstrated, nor with the Community
framework for State aid for research and develop-
ment (8), as amended by the Commission Commu-
nication of 1998 (9) (the rate of 75 % could be too
high if some of the conditions contained in those
documents were not met);

(f)

as regards the promotion of bergamot oil (non-
Annex I product), compliance with the relevant
provisions of the Guidelines on national regional
aid had not been shown.

(20) With regard to Article 6(3), no details had been given
concerning the proposed rate of aid and the accessibility
of the aid despite the request for information in this
connection to the Italian authorities from the Commis-
sion in its letter of 14 March 2000.

(6) OJ C 74, 10.3.1998, p. 9.
(7) OJ C 213, 23.7.1996, p. 4.
(8) OJ C 45, 17.2.1996, p. 5.
(9) OJ C 48, 13.2.1998, p. 2.

(21) By letter dated 26 October 2000, registered as received
on 27 October 2000, the Italian Permanent Representa-
tion to the European Union forwarded to the Commis-
sion a letter from the Italian authorities in which they
stated,
in answer to the letter of 6 October 2000
announcing the initiation of the procedure pursuant to
Article 88(2) of the Treaty, that they had suspended the
arrangements for the grant of financial resources referred
to in Law No 39.

(22) By letter of 29 November 2000, registered as received on
30 November 2000, the Italian Permanent Representa-
tion to the European Union forwarded to the Commis-
sion a letter from the Italian authorities containing the
latter’s reply to the Commission’s comments on the
initiation of the procedure.

(23) By letter dated 14 February 2001, registered as received
on 19 February 2001, the Italian Permanent Representa-
tion to the European Union forwarded to the Commis-
sion a letter from the Italian authorities supplementing
their reply referred to in recital 22 above.

(24) By letter of 21 September 2001, registered as received on
24 September 2001, the Italian Permanent Representa-
tion to the European Union forwarded to the Commis-
sion a supplement
to the reply from the Italian
authorities.

(25) By letter dated 23 April 2002, registered as received on
25 April 2002, the Italian Permanent Representation to
the European Union sent the Commission the text of a
draft order laying down implementing rules for Law
No 39 and taking into account the Italian authorities’
reply in their letters referred to in recitals 22, 23 and 24.

(26) By letter dated 5 November 2003, registered as received
on 7 November 2003, the Italian Permanent Representa-
tion to the European Union forwarded to the Commis-
sion a letter from the Italian authorities in which they
stated expressly that, in view of the time that had elapsed
since the dispatch of their last letter, they had reason to
believe that they were in a situation where ‘silence means
assent’ which made it possible for them to apply the rules
as amended in the light of the Commission’s comments.

(27) By letter dated 26 November 2003, the Commission
informed the Italian authorities that this approach could
be taken only for aid files that have been notified and not
for those subject to the procedure pursuant to Article 88
(2) of the Treaty but that, if they so wished, they could
ask the Commission to adopt a decision within two
months pursuant to Article 7(7) of Council Regulation

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(EC) No 659/1999 of 22 March 1999 laying down
detailed rules for the application of Article 93 (now
the EC Treaty (10). The Commission
Article 88) of
departments also stated that after
receiving such a
request the Commission would adopt a decision within
indicated in the above
the prescribed period, as
provisions.

the European Union forwarded to the Commission a
letter from the Italian authorities in which they invoked
Article 7(7) of Regulation (EC) No 659/1999 to ask the
Commission to adopt a final decision within two
months. The Commission will take a decision therefore
the information available to it, as
on the basis of
provided for in that Article.

(28) By letter dated 6 May 2005, registered as received on
11 May 2005, the Italian Permanent Representation to

Contents of the draft order

(29) Article 2 of the draft order provides for the grant of aid for investment in agricultural holdings. The

rates of aid and award conditions are as follows:

Expenditure

Less-favoured areas
(a)

Other areas (b)

Requirements

— Construction, purchase (*)
or modernisation of
immovable property
— Machinery and equip-

ment, including computer
programmes

— General expenses (archi-
tects’, engineers’ and
consultants’ fees; feasibil-
ity studies purchase of
patents and licences)
— Investment in the conser-
vation of traditional
landscapes (c)

50 %

40 %

* Calculation based on the
value of the property,
excluding start-up costs

50 %

40 %

for used equipment, see (d)

50 %

40 %

12 % of total project costs

up to 75 %

up to 60 %

without increasing production
capacity

50 + 100 % of
additional expen-
diture

40 + 100 % of
additional expen-
diture

without increasing production
capacity (e)

(a) May be raised to 55 % for young farmers, within the meaning of Article 8 of Regulation (EC) No 1257/1999, who make

the investment during the five years following setting up.

(b) May be raised to 45 % for young farmers, within the meaning of Article 8 of Regulation (EC) No 1257/1999, who make

the investment during the five years following setting up.
Small infrastructure investments designed to protect holdings against erosion, together with work requiring engineering
needed for water management, are also eligible.

(c)

(d) The following conditions must be met: the seller must provide a statement attesting to the origin of the equipment and to
the fact that no aid has been collected in respect of it; it must be shown that the purchase is particularly advantageous for
carrying out the project or is justified on exceptional grounds; there must be a reduction in costs and continued value for
money; the technical and technological features of the equipment must be consistent with the needs of the project.
(e) The rates of 40 and 50 % may be raised by 5 % for young farmers. Additional expenditure is that attributable to the use of

traditional materials.

(10) OJ L 83, 27.3.1999, p. 1.

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(30) Aid will be available only to individual holdings or

associations thereof:

— whose profitability is demonstrated where the net
income per work unit is 60 % or more of the
reference income determined by ISTAT, in accor-
dance with the operational programme for the
region of Calabria,

— which satisfy the minimum Community standards
for the environment, health and animal welfare,

— whose tenants have the necessary knowledge and

skills,

— which undertake to use the investments for the
purposes set by the draft order for 10 years in the
case of immovable property and five years in the
case of moveable property.

(31) Aid will not be available for investments geared to
increasing the production of products for which there are
those which infringe any
no market outlets, or
restrictions on production or limitations on Community
support provided for under the common organisation of
markets.

(32) Article 3 of the draft order provides for the grant of aid
for investment in the processing and marketing sector.
The rates of aid and award conditions are as follows:

Eligible expenditure

Maximum rate of aid

— Construction, purchase (a) or
modernisation of immovable
property

50 %

— Machinery and equipment,

50 %

including computer pro-
grammes (b)

— General expenses (architects,

50 %

engineers and consultants fees;
feasibility studies; purchase of
patents and licences)

(a) Calculation based on the value of

the immovable property,

excluding start-up costs.
In the case of leasing without reservation of title, with purchase
within four years and in any event before the expiry of the deadline
for making the investments.

(b)

(33) Aid will be available only to processing and marketing

enterprises:

— whose profitability is demonstrated where the
return on investment (ratio between the income
of the holding and the capital invested) is equal to
the return on investment for each section of activity
(in the case of new enterprises, profitability should

be demonstrated when activities reach their normal
rate, in accordance with the information contained
in the regional operational programme — ROP —
for Calabria),

— which satisfy the minimum Community standards
for the environment, health and animal welfare,

— which guarantee positive economic consequences
for basic producers, through supply contracts for a
term of at
three years from the date of
least
completion of the investments,

— which undertake to ensure the use of the invest-
ments for the intended purposes for 10 years in the
case of investments in immovable property, and five
years in the case of other investments.

(34)

If the beneficiaries are themselves producers, at least
60 % of the raw material must come from outside the
holding.

(35) Aid is not available for investments:

— designed to increase the production of products for
which there are no market outlets or which are
to any restrictions on production or
counter
limitations on Community support under
the
common organisation of markets,

— concerning retail trade.

(36) Article 4 of the draft order lays down provisions on the
farming
introduction and continuation of organic
methods, in compliance with the conditions laid down
in the operational programme for the region of Calabria
approved by the Commission (11). It provides that the
grant of aid is subject to the following conditions:

— the conclusion, with the Region, of a contract
providing for the application of organic farming
the area cultivated
methods over the whole of
annually, together with the keeping of the farm
records provided for in Council Regulations (EEC)
No 2092/91 (12) and (EC) No 1804/1999 (13),

— the requirement that the beneficiary apply good
agricultural practice on the land and for crops that
are not covered by the contract concerned.

(11) Decision C(2000) 1600 of 15 June 2001.
(12) OJ L 198, 22.7.1991, p. 1.
(13) OJ L 222, 24.8.1999, p. 1.

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(37) The financial allocation provided for under this measure
comes from the resources available under the operational
programme for the region of Calabria.

(38) Article 5 of the draft order provides for the grant of aid
to the new consortiums and associations representing
bergamot producers who wish to carry on activities in
the field of quality production as referred to in Council
Regulation (EEC) No 2081/92 (14) and (EEC) No 2092/
91, in compliance with the Community guidelines for
State aid in the agricultural sector. These consortiums
and associations may also receive aid for the introduction
of quality and certification systems for PDO and organic
products.

(39) The procedure for the grant of start-up aid and the
extension of activities referred to in recital 38 is the
following:

Eligible expenditure

Maximum rate of aid

ISO and HACCP standards:
Costs associated with the
introduction of quality assur-
ance standards and
environmental audit systems;
training given to people who
will have to apply those
standards

100 % of certified expenditure
(the overall amount of aid
may not exceed EUR 100 000
per beneficiary for each three-
year period (a)

Setting up of control systems
and certification of quality
systems (Regulations (EEC)
No 2081/92 and (EEC)
No 2092/91)

100 % of expenditure certified
in the first year, followed by a
reduction of around 16,7 %
per year until fully paid (after
six years)

Cover of fees requested by
recognised certification
bodies for the initial certifi-
cation of quality assurance
and similar systems

100 % of expenditure certified
in the first year, followed by a
reduction of around 16,7 %
per year until fully paid (after
six years)

Maximum rate of aid

Control and certification of
organic farming methods

100 % of certified expenditure

Start-up and extension
of activities (a)
Eligible expenditure

— Hire of premises (b)

— Purchase of office

equipment (including
data-processing facil-
ities)

— Staff costs

— Operating costs

— Administrative expenses

The aid is granted for a
maximum of five years; it may
not exceed 100 % of the costs
borne during the first year,
followed by a reduction of
20 % per year.

(a) Aid may not be granted for expenditure incurred beyond the
seventh year following setting up. In the event of a significant
extension of activities, expenditure arising from any additional
activities of the beneficiary will be considered admissible. The
addition of new members is not considered to be a significant
extension of acitvities save where it entails a 30 % increase in the
volume of activities of the beneficiary.
In the event of purchase, eligible expenses are limited to the hire
costs at the market price.

(b)

(a) The service is intended for the beneficiary. If services are provided

by associations, they must be accessible to all interested parties.

(41) Article 6 of the draft order provides for the grant of aid
for the repair of municipal and local roads (to provide
access for machinery to holdings), and to provide
electricity supplies
are
grown.

in areas where bergamots

(42) The procedure for the grant of the aid referred to in

recital 41 is the following:

Type of investment
and beneficiaries

Maximum rate of aid

Investments in infrastructure
by public bodies: rural roads
and electrification

Investments in new roads
serving rural areas (a), with
private participation

100 %

75 %

(40) The procedures for the grant of aid for the introduction
of quality systems and systems for the certification of
PDO and organic products, referred to in recital 38, are
as follows:

(a) Measures of general

public).

interest

(infrastructure accessible to the

(14) OJ L 208, 24.7.1992, p. 1.

(43) Article 7 of the draft order provides for the grant of
research aid to new consortiums and/or bodies repre-
senting agricultural producers.

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(44) The procedure for the grant of the aid referred to in

recital 43 is the following:

For bergamot as a citrus plant

Research and development

Maximum rate of aid

(45) Article 8 of the draft order provides for the grant of aid
the promotion (15) of bergamots and bergamot
for
derivatives. The beneficiaries are recognised producer
associations or consortiums and/or bodies representing
producers operating in the field of PDO production. The
procedure for the grant of the aid is the following:

— Staff expenditure (research work-
ers, technicians and back-up staff
employed exclusively on
research),

— cost of instruments, equipment,

land and premises used exclu-
sively for the research (save in the
event of transfer on a commercial
basis),

— cost of consultants’ and equiva-
lent services used exclusively for
the research activity, including the
research, technical skills, patents,
licence fees, etc. purchased,

— additional overhead costs

incurred directly as a result of the
research activity,

— other operating expenses (e.g.
cost of materials, supplies and
similar products) incurred
directly as a result of the research
activity.

100 % of eligible
expenditure in com-
pliance with Com-
mission Communi-
cation 98/C 48/2 (a)

(a) The project will have to be of general interest to the sector and not
create distortions of competition;
the information will be
published in appropriate publications distributed at least in the
region; operators may be notified in real time of the research
results; the research results will be made available for use by all
interested parties on an equal basis in terms of costs and time; the
aid will comply with the relevant terms of the agreement on
agriculture concluded during the Uruguay Round multilateral trade
negotiations.

For bergamot essence

Research and development
(OJ C 45, 17.10.1996)

Maximum rate of aid and eligible
expenditure (a)

up to 50 % of eligible expen-
diture

— Industrial research and
technical feasibility stu-
dies prior to industrial
research

— Precompetitive activities

Advertising campaigns

The associations and bodies representing producers must ensure access
for all producers to advertising measures on equal terms.

— Advertising means any operation designed to encourage

economic operators or consumers to purchase a given
product, any material distributed directly to consumers
for the same purpose, and publicity measures organised
for consumers at sales points. Advertising does not
include promotion measures within the meaning of point
8 of the Community guidelines on State aid for the
advertising of products falling within Annex I to the
Treaty and certain products not falling within Annex I (a).

— Advertising measures focusing on a common theme,

which are allocated an annual budget of more than EUR 5
million and which concern new quality control systems
or new brands, or refer to the national or regional origin
of the products, must be notified to the European
Commission.

— Article 2 of Directive 2000/13/EC of the European

Parliament and of the Council of 20 March 2000 on the
approximation of the laws of the Member States relating
to the labelling, presentation and advertising of food-
stuffs (16) must be observed.

— The Community rules applicable to the products

concerned must be observed in accordance with the
point 25 of the above Guidelines.

— The following conditions must be met in the case of

products bearing quality marks: accessibility of the mark
to all Community producers, with no geographical
restriction associated with the product’s origin and no
geographical reference in the mark; recognition, on the
basis of equivalence, of checks carried out by bodies
recognised by other Member States; secondary nature of
the origin, in the advertising message (this rule applies
also to products with no mark).

up to 25 % of eligible expen-
diture

(a) Operations that are not covered include those such as the
dissemination of scientific knowledge, the organisation of fairs and
exhibitions and participation in similar events or other public
relations initiatives, including opinion polls and market studies.

(a)

Staff expenditure (research workers, technicians and back-up staff
employed exclusively on research); cost of instruments, equipment,
land and premises used exclusively for the research (save in the
event of transfer on a commercial basis); cost of consultants and
equivalent services used exclusively for
the research activity,
including the research, technical skills, patents, licence fees, etc.
purchased; additional overhead costs incurred directly as a result of
the research activity; other operating expenses (e.g. cost of
materials, supplies and similar products) incurred directly as a
result of the research activity.

(15) As shown in the tables attached to Article 8, this includes both

promotion and advertising measures.

(16) OJ L 109, 6.5.2000, p. 29. Directive as last amended by

Directive 2003/89/EC (OJ L 308, 25.11.2003, p. 15).

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Type of aid

Maximum rate of aid

Advertising of high-quality
products in compliance with
Article 28 of the Treaty.
Advertising of products with
a designation of origin within
the meaning of Regulation
(EEC) No 2081/92.
Advertising of products with
a designation of origin within
the meaning of Regulation
(EEC) No 2092/91.

Up to 50 % of eligible
expenditure with the possibi-
lity of an increase to 75 % for
SMEs (a) in Objective 1 areas.

(47) Article 11 of the draft order establishes the allocations
available for financing the aid described above. The
allocations are as follows:

— ITL 2 billion (EUR 1 032 914) for the measures
in Article 4 (in accordance with

provided for
Article 4 of Law No 39),

— ITL 6 billion (EUR 3 098 742) for the measures
provided for in Articles 2, 3, 5, 7 and 8 (in
accordance with Article 6(2) of Law No 39),

(a)

SMEs satisfying the definition in Commission Regulation (EC)
No 70/2001 of 12 January 2001 on the application of Articles 87
and 88 of the EC Treaty to State aid to small and medium-sized
enterprises (17).

— ITL 4 billion (EUR 2 065 828) for the measures
in Article 6 (in accordance with

provided for
Article 6(3) of Law No 39).

In all cases:

— aid will not be granted to individual enterprises,

V.

EVALUATION

— enterprises which conduct advertising campaigns
will be selected on the basis of a procedure that
complies with Directive 92/50/EEC or,
that
Directive does not apply, on the basis of transparent
and non-discriminatory procedures,

if

— in all cases, campaigns will comply with at least one
of the positive criteria laid down, since they will
concern organic or high-quality products or
products with a designation of origin.

Promotion and dissemination of general information

Type of aid

Maximum rate of aid

— Organisation of compe-
titions, exhibitions and
fairs

— Market studies
— Dissemination of infor-

mation

up to EUR 100 000 per
beneficiary (a) and per three-
year period or, in the case of
SMEs (b), 50 % of eligible
expenditure, the larger
amount applying

(48) Article 87(1) of the Treaty stipulates that 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 shall, in so far as it affects
trade between Member States, be incompatible with the
common market.

(49) The measures provided for first by Law No 39 and then
in the draft order notified by the Italian authorities in
their letter of 23 April 2002 correspond for the most
part to this definition (for the exceptions, see below) in
that they are financed through public resources, favour
the production of
and
bergamot derivatives) and may affect trade given the
position Italy occupies in the sector concerned (Italy is
the largest producer of bergamots and bergamot essence
in the Union and part of its production is exported to
other Member States).

certain goods

(bergamots

(a) The service is intended for the beneficiary. Services provided by

bodies representing producers must be accessible to all farmers.

(b) SMEs satisfying the definition in Commission Regulation (EC)
No 70/2001 of 12 January 2001 on the application of Articles 87
and 88 of the EC Treaty to State aid to small and medium-sized
enterprises..

(50) However,

in the cases provided for in Article 87(2)
and (3) of
the Treaty, certain measures may, by
derogation, be considered to be compatible with the
common market.

(46) Article 9 of

the draft order provides that aids, of
indeterminate duration, may be aggregated in compli-
ance with the maximum rates shown in the tables above.

(51)

(17) OJ L 10, 13.1.2001, p. 33. Regulation as last amended by

Regulation (EC) No 364/2004 (OJ L 63, 28.2.2004, p. 22).

In the case under consideration, in view of the nature of
the measures described above, the only derogation that
may be relied on is that contained in Article 87(3)(c) of
the Treaty, which stipulates that aid to facilitate the
development of certain economic activities may be
considered to be compatible with the common market or
of certain economic areas where it does not adversely
affect trading conditions to an extent contrary to the
common interest.

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(52)

In view of the content of the draft order notified by the
Italian authorities, the applicability of the derogation
provided for in Article 87(3)(c) of the Treaty will be
examined in the light of the following rules:

— in the case of the aid for promotion and advertising

referred to in Article 8 of the draft order:

— in the case of the aid provided for in Articles 2, 4, 5,
6 and 8 of the draft order (concerning promotion in
the broad sense), the Community guidelines for
State aid in the agricultural sector, hereinafter called
‘the Guidelines’ (18) (in the case under consideration,
the evaluation cannot be made in the light of the
provisions of Commission Regulation (EC) No 1/
2004 of 23 December 2003 on the application of
Articles 87 and 88 of the Treaty to State aid to small
and medium-sized enterprises active in the produc-
tion, processing and marketing of agricultural
products (19), since Article 20(3) states that where
its conditions are not fulfilled, the Commission will
examine notifications pending at the time of its
entry into force under the Guidelines and that, in
this case, under
it cannot be
excluded that enterprises other than small and
medium-sized ones may also qualify for aid),

the draft order

— in the case of the aid referred to in Article 3 of the
draft order,
the Guidelines on national regional
aid (20) and Regulation (EC) No 70/2001 of
12 January 2001 on the application of Articles 87
and 88 of the EC Treaty to State aid to small and
medium-sized enterprises (21) which, pursuant to
Article 9a(1) (22), applies to notifications pending,
other than those concerning aid for research and
development,

— in the case of the aid referred to in Article 7 of the
draft order, the Community Framework for State aid
for research and development (23) and the 1998
Commission Communication amending the Com-
munity framework for State aid for research and
development (24),

(18)
See footnote 3.
(19) OJ L 1, 3.1.2004, p. 1.
(20)
See footnote 6.
(21)
See footnote 17.
(22)
Inserted by Article 1(9) of Commission Regulation (EC)
No 364/2004 amending Regulation (EC) No 70/2001 as
regards the extension of its scope to include aid for research
and development (OJ L 63, 28.2.2004, p. 22).
See footnote 8. The Framework continues to apply in the case
consideration since Commission Regulation (EC)
under
expressly, by inserting a new
No 364/2004 provides
Article 9a in Regulation (EC) No 70/2001, that notifications
concerning aid for research and development pending on
19 March 2004 (which is the situation in this case) will
continue to be assessed under the Community framework for
State aid for research and development.
See footnotes 9 and 23.

(23)

(24)

— the Community Guidelines for State aid for
advertising of products listed in Annex I to the
EC Treaty and of certain non-Annex I pro-
ducts (25), in the case of advertising measures
for bergamot as a fruit, and the Community
guidelines on national regional aid, in the case
of advertising measures for bergamot essence,

— the Guidelines,

in the case of promotion/
technical assistance measures in favour of
bergamot producers, and the Guidelines on
national regional aid together with Regulation
(EC) No 70/2001, in the case of promotion/
technical assistance measures in favour of
producers of essential bergamot oil.

Aid provided for in Article 2 of the draft order

(53) The aid provided for in this Article is aid for investment
in agricultural holdings and are therefore governed by
point 4.1 of the Guidelines, which provide for:

— an aid rate of 40 % of eligible expenditure for
investments in less-favoured areas and of 50 % for
investments in less-favoured areas with the possibi-
lity of a 5 % increase in the rate for investments
made by young farmers during the five years
following setting up (the rates of aid expressing a
gross subsidy equivalent),

— a list of eligible expenditure consisting of

the
purchase, acquisition or improvement of immova-
ble property, the purchase of new material and
equipment, including software (the purchase of used
equipment may be considered eligible where the
following four conditions are met: a certificate from
the seller confirming the exact origin of
the
equipment and attesting that it has not qualified
for national or Community aid; the purchase of the
equipment must be particularly advantageous for
the programme or project and be justified by
exceptional circumstances such as the absence of
available new equipment within the required time;
the costs involved, and therefore the amount of aid,
must be low compared with the costs of the same
equipment purchased new, while maintaining value
the used equipment must have the
for money;
technical and/or technological characteristics neces-
sary to comply with the project specification) and
the overheads (architects, engineers and experts fees,
feasibility studies, puchases of
trade marks and
licences, etc.) up to 12 % of the two items of
expenditure mentioned previously,

(25) OJ C 252, 12.9.2001, p. 5.

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— the need, for the beneficiary holdings, to be viable
on the basis of their prospects and to comply with
the minimum environmental, health and animal
welfare standards.

(54) These provisions are supplemented by another, more
general one according to which the aid schemes should
provide that no aid may be granted in respect of work
begun or activities undertaken before an application for
aid has been properly submitted to the competent
authority concerned, the reason being that aid which is
granted retrospectively in respect of activities which the
beneficiary has already undertaken cannot be considered
to include the necessary incentive element that must be
contained by any non-compensating aid in order to be
declared compatible with the common market (26).

(55)

In the light of the provisions of recitals 29 to 31 above,
the Commission notes that all the requirements set out in
recitals 53 and 54 are met, provided that the rates of aid
indicated in the draft order express a gross subsidy
equivalent and that the aid continues to include an
incentive element and is not retrospective,
in other
words, is granted in respect of work undertaken before
an application has been properly submitted.

(56) Against this background, the Commission, having been
called upon to give its comments on the basis of the
information available to it, notes that the proposed aid
will be compatible with the common market if it is
reserved for beneficiaries who begin work only after an
aid application has been submitted to the competent
authority and if the rates of aid proposed in the draft
order express a gross subsidy equivalent.

Aid provided for in Article 3 of the draft order

(57) On the initiation of the procedure pursuant to Article 88
(2) of the Treaty in respect of the aid provided for in
Article 6(1) and (2) of Law No 39 for the processing of
the essential oil
bergamots and the marketing of
obtained, it was emphasised that compliance with the
rates of aid and other provisions laid down by the
Guidelines on national regional aid and those on State
aid for small and medium-sized enterprises had not been
demonstrated.

(58) Article 3 of the draft order admittedly provides details of

the rate of financing for the proposed measures.

it matches,

regardless of

(59) The rate of aid mentioned (50 %) is acceptable therefore
the proposed subsidy
as
that approved by the Commission for
equivalent,
the Italian
the review of
Calabria in the context of
regional aid map (27), and the nature of
the eligible
expenditure described shows that it is an aid for initial
investment within the meaning of point 4.4 of
the
Guidelines.

(60) Similar considerations apply also if the aid is examined in
the light of Regulation (EC) No 70/2001.. However,
irrespective of which Community text applies,
the
Commission is not in a position to determine whether
the aid application will be made before implementation
of the investment projects starts.

(61)

In these circumstances, the Commission will be able to
remove the doubts it has expressed concerning the
compatibility with the common market of the aid for
processing and marketing examined only if the aid are
granted solely to those who have submitted an aid
application before starting their investments.

Aid provided for in Article 4 of the draft order

that

(62) The Commission notes, in the light of the information
contained in recital 36,
the public financial
assistance proposed constitutes a financial contribution
from the Member State towards the joint financing of
rural development measures, within the meaning of
Article 51 of Regulation (EC) No 1257/1999 (28), and
consequently does not constitute, by virtue of
that
Article, State aid within the meaning of Article 87(1) of
the Treaty.

Aid provided for in Article 5 of the draft order

(63) With regard to the start-up aid for which the award
procedure is described in recital 39, the Commission
notes that the text of the draft order contains an express
undertaking regarding compliance with the Guidelines
(see recital 38). However, it should be made clear that the
aid must comply in particular with point 10.3 of the
Guidelines, which lay down the rules that must be
applied by producer groups in order to be eligible for aid.
Secondly,
the intensities
provided for in Table B.I of the draft order, which refers
to a 20 % reduction in aid each year, should be calculated
in accordance with point 10.5 of the Guidelines, with 20
percentage points reduction each year, and not by
reducing by 20 % the percentage applicable the previous
year.

it should be specified that

the Guidelines

(64) Regarding the aid for the introduction of quality and
certification systems for PDO and organic products for
which the award procedure is described in recital 40, the
the relevant
Commission notes that all aspects of
provisions of
case under
(in the
consideration, those in recital 13) are observed. Conse-
the aid for the control and certification of
quently,
organic cultivation methods complies with the last
paragraph of point 13.4 of the Guidelines and may
therefore qualify for the derogation provided for in
Article 87(3)(c) of the Treaty as aid intended to facilitate
the development of certain activities or of certain
economic areas without adversely affecting trading

See point 3.6 of the Guidelines.

(26)
(27) OJ C 175, 24.6.2000, p. 11.

(28)

See footnote 4.

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conditions to an extent that is contrary to the common
interest, in the same way as aid to establish control and
certification systems for quality systems pursuant
to
Regulation (EEC) No 2081/92, which is paid degressively
during a sufficient period until it is eliminated as also
provided for in point 13.4 referred to above.

Commission Communication of 1998 relating to the
amendment of the Community framework for State aid
for research and development are met. That aid may
qualify therefore for the derogation provided for in
Article 87(3)(c) of the Treaty as aid to facilitate the
development of certain activities or of certain economic
areas without adversely affecting trading conditions to an
extent contrary to the common interest.

to various

(65) Similarly, the aid intended to cover expenditure on the
ISO and HACCP quality assurance
introduction of
programmes complies with the majority of the require-
ments arising under point 13.2 of
the Guidelines.
However, the ceiling of EUR 100 000 per beneficiary
for each three-year period provided for in the third
paragraph of point 13.2 represents the sum of the aid
applicable
expenditure headings which
includes the costs associated with the introduction of
quality assurance standards and environmental audit
systems and the cover of fees requested by recognised
certification bodies; but, according to Table B.II attached
to Article 5 of the draft order, that maximum amount is
assumed to apply only to the costs associated with the
introduction of quality assurance standards and environ-
mental audit systems, while the cover of fees requested by
recognised certification bodies is not subject
to any
maximum with the result that an overrun of the EUR
100 000 may occur if the aid for these two expenditure
headings is added together. Approval of the aid should be
conditional therefore on all the aid in question actually
observing the maximum.

(66)

cultivation methods and the aid for

In view of all these factors, the Commission is obliged to
conclude that the aid for the control and certification of
organic
the
establishment of control and certification systems for
quality systems pursuant to Regulation (EEC) No 2081/
92 may qualify for the derogation provided for in
Article 87(3)(c) of the Treaty as aid to facilitate the
development of certain activities or of certain economic
areas which do not adversely affect trading conditions to
an extent that is contrary to the common interest, subject
to the requirement
regarding compliance with the
maximum amount provided for in the third paragraph
of point 13.2 of the Guidelines.

Aid provided for in Article 6 of the draft order

(67) According to the information contained in the table
attached to Article 6, public financial assistance will only
apply to infrastructure of general interest.

(68) That assistance may be considered therefore not

to
constitute State aid within the meaning of Article 87(1)
of the Treaty.

Aid provided for in Article 7 of the draft order

(69) Regarding the aid for research on bergamot as a citrus
fruit, the Commission notes, in the light of the table
attached to Article 7, that the conditions laid down in the

(70) With regard to the aid for research on bergamot essence,
the Commission notes, in the light of the table attached
to Article 7, that the eligible expenditure and the rates of
aid are in line with those laid down in the Community
framework for State aid for research and development.
The concepts of industrial research and precompetitive
activities are not defined, but
the table contains a
reference to the Community framework. To be absolutely
it should be decided that the proposed aid for
clear,
research on bergamot essence may qualify for
the
derogation provided for in Article 87(3)(c) of the Treaty
on condition that the concepts of industrial research and
precompetitive activities are in line with those set out in
Annex I to the above framework.

Aid provided for in Article 8 of the draft order

(71) With regard to the advertising measures, the Commis-
sion notes that the proposed aid will be granted both for
bergamots as fruit and for products derived from them
(in other words, bergamot essence).

Advertising of bergamots as fruit

the Treaty:

in Article 87(3)(c) of

(72) With regard to the advertising of bergamots as fruit, the
Community guidelines on State aid for the advertising of
products falling within Annex I to the Treaty and certain
products not falling within Annex I lay down a number
of conditions so that aid may qualify for the derogation
the
provided for
proposed advertising campaign must not meet any of
the negative criteria set out (advertising which over-
emphasises the origin of the products, advertising for
individual enterprises, campaigns that are contrary to
secondary Community law) and must satisfy at least one
of the positive criteria laid down (in the agricultural
sector, advertising focusing on surplus products or
under-exploited species, on new products or replacement
products that are not yet in surplus, on high-quality
products — including those manufactured or obtained in
accordance with environmentally-friendly production
methods, such as organic products — on the develop-
ment of certain areas, on the development of small and
medium-sized enterprises). In addition, the rate of aid
must be 50 % of the costs and, in order to take account
of
the positive criteria
referred to, may be raised to 75 % of the expenditure, in
the case of advertising in favour of products manufac-
tured by SMEs located in areas that may qualify for aid
pursuant to Article 87(3)(a) of the Treaty.

the importance of some of

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set out

(73) The Commission notes that the aid will be granted in
compliance with at least one of the positive criteria
(advertising for organic products)
in the
Community guidelines for State aid for advertising of
products listed in Annex I to the EC Treaty and of
certain non-Annex I products, and without any of the
negative criteria listed in the same guidelines (secondary
nature of
the origin in the message disseminated,
exclusion of all advertising for individual enterprises,
compliance with the rules applicable to the products
referred to and of Directive 2000/13/EC). The proposed
rate of aid of 50 % corresponds also to that provided for
by the latter, as does the increase to 75 % for small and
medium-sized enterprises, since Calabria is an assisted
area within the meaning of Article 87(3)(a) of the
Treaty.

beneficiaries may be both producers of bergamots and
producers of essential bergamot oil.

Promotion and dissemination of general information for
bergamot producers

(78) The Commission notes that the services covered fall
within point 14 of the Guidelines. It also notes, in the
light of the table attached to Article 8, that all the
relevant requirements for those points (rate or amount
of aid, accessibility of services) are met.

(74)

In view of all these factors, the Commission concludes
that the proposed advertising aid for bergamots as fruit
could qualify for
in
Article 87(3)(c) of the Treaty.

the derogation provided for

(79) The aid may qualify therefore for

the derogation
provided for in Article 87(3)(c) of the Treaty as aid to
facilitate the development of certain activities or of
certain economic areas that does not adversely affect
to an extent contrary to the
trading conditions
common interest.

Advertising of bergamot essence

Promotion and dissemination of general information for
bergamot producers

(75) Concerning the advertising of bergamot essence, the
Commission emphasised, on the initiation of
the
procedure pursuant to Article 88(2) of the Treaty, that
compliance with the relevant provisions of the Guide-
lines on national regional aid had not been shown (see
recital 19(f)). However, it should be noted that bergamot
essence is a non-Annex I product with a content made
up predominantly of products falling within Annex I.
it is also covered by the Community
Consequently,
guidelines on State aid for the advertising of products
to the Treaty and certain
falling within Annex I
products not falling within Annex I,
in accordance
with recital 9.

(76) Since the draft order submitted by the Italian authorities
provides for identical aid for bergamot essence and for
bergamots as fruit, the Commission concludes that the
advertising aid for bergamot essence may also qualify
for the derogation provided for in Article 87(3)(c) of the
Treaty as aid to facilitate the development of certain
activities or of
areas without
certain economic
adversely affecting trading conditions to an extent
contrary to the common interest.

(77) Concerning the aid for the promotion and dissemina-
tion of general information, the Commission notes that

(80) The Commission notes that Table E attached to Article 8
of the draft order is also based on the provisions of the
Guidelines where the aid concerns producers of
essential bergamot oil. But, as indicated above, essential
bergamot oil does not fall within Annex I to the Treaty
and the aid for it, regardless of its form, cannot be
covered by the Guidelines, but should be governed by
the provisions referred to in the fourth indent of recital
52.

(81) On this point,

that

the Commission notes

the
promotional aid for producers of essential bergamot
oil may qualify for the derogation pursuant to Article 87
(3)(c) of the Treaty as aid to facilitate the development
of certain activities or of certain economic areas which
does not adversely affect trading condition to an extent
contrary to the common interest where the beneficiary
is a small or medium-sized enterprise, on condition
that
it satisfies the requirements of Article 5 of
Regulation (EC) No 70/2001, under which:

— for services provided by outside consultants the aid
must not exceed 50 % of the costs of such services;
the services concerned must not be ongoing or
periodic nor
relate to the enterprise's usual
operating expenditure, such as routine tax con-
sultancy services, regular legal services, or adver-
tising,

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— in the case of participation in fairs and exhibitions,
the gross aid must not exceed 50 % of the additional
costs incurred in renting, setting up and running the
stand (this exemption applies only to the first
participation of an enterprise in a particular fair or
exhibition).

(82)

Irrespective of the size of the beneficiary, the measure
would not be regarded as State aid if all the substantive
and formal requirements laid down by Regulation (EC)
No 69/2001 were met.

VI.

CONCLUSIONS

(83) The above examination shows that:

— the aid provided for in Article 2 of the draft order is
compatible with the common market on condition
that it is reserved for beneficiaries who start work
only after an aid application has been submitted to
the competent authority, and that the proposed
rates of aid express a gross subsidy equivalent,

— the aid provided for in Article 3 of the draft order is
compatible with the common market on condition
that
they are granted only to those who have
submitted an aid application before starting their
investments,

— the aid provided for in Article 4 of the draft order
does not constitute State aid within the meaning of
Article 87(1) of the Treaty,

— the aid provided for in Article 5 of the draft order
for the checks carried out in the organic products
sector and for the establishment of control and
certification systems of quality systems pursuant to
Regulation (EEC) No 2081/92 is compatible with
the common market,

— the aid provided for in Article 5 of the draft order to
launch or extend the activities of producer groups
and the aid provided for in that Article to cover the
fees requested by recognised certification bodies for
the initial certification of quality assurance and
similar systems is compatible with the common
market on condition that all
the aid to cover
expenditure on the introduction of ISO and HACCP
quality
fees
requested by certification bodies is limited to EUR
100 000 per beneficiary for each three-year period,

assurance programmes

and the

— the aid provided for in Article 6 of the draft order
does not constitute State aid within the meaning of
Article 87(1) of the Treaty,

— the aid provided for in Article 7 of the draft order
is compatible with the

for bergamots as fruit
common market,

— the aid provided for in Article 7 of the draft order
for bergamot essence will be compatible with the
common market
industrial
research and precompetitive activities are in line
with those listed in Annex I to the Community
framework for State aid for research and develop-
ment,

the concepts of

if

— the aid provided for in Article 8 of the draft order
for advertising of bergamots as fruit and bergamot
essence is compatible with the common market,

— the aid provided for in Article 8 of the draft order
for promotion and the dissemination of general
information to bergamot producers is compatible
with the common market,

— the aid provided for in Article 8 of the draft order
for promotion and the dissemination of general
information for producers of essential bergamot oil
which correspond to the Community definition of
small and medium-sized enterprise is compatible
with the common market provided that
the
conditions set out in Article 5 of Regulation (EC)
No 70/2001 are met,

— irrespective of the size of the beneficiary, the aid
provided for in Article 8 of the draft order for
promotion and the dissemination of general
information for producers of essential bergamot
oil does not constitute State aid within the meaning
of Article 87(1) of the Treaty on condition that all
the substantive and formal requirements laid down
by Regulation (EC) No 69/2001 are met.

(84) Since the Italian authorities have indicated that they have
suspended the arrangements for the grant of the financial
resources referred to in Law No 39 (see recital 21), there
is no need to consider the recovery of unduly collected
aid,

HAS ADOPTED THIS DECISION:

Article 1

The aid provided for in Article 4 of Law No 39 of 25 February
2000, the detailed rules for the application of which are laid
down in Article 4 of the draft order sent by the Italian
authorities following the initiation of the procedure provided
for in Article 88(2) of the Treaty in respect of Articles 4 and 6
of that Law, does not constitute State aid within the meaning
of Article 87(1) of the Treaty.

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Article 2

The aid provided for in Article 6 of Law No 39 of 25 February
2000, the detailed rules for the application of which are laid
down in Article 2 of the draft order, is compatible with the
reserved for
common market on condition that
beneficiaries who start work only after an aid application
has been submitted to the competent authority, and that the
rates of aid proposed in the draft order express a gross subsidy
equivalent.

is

it

Article 3

The aid provided for in Article 6 of Law No 39 of 25 February
2000, the detailed rules for the application of which are laid
down in Article 3 of the draft order, is compatible with the
common market on condition that it is granted only to those
who have submitted an aid application before starting their
investments.

Article 4

The aid provided for in Article 6 of Law No 39 of 25 February
2000, the detailed rules for the application of which are laid
down in Article 5 of the draft order, is compatible with the
the aid to cover
common market on condition that all
expenditure on the introduction of ISO and HACCP quality
assurance programmes and the fees requested by certification
bodies is limited to EUR 100 000 per beneficiary for each
three-year period.

Article 5

The aid provided for in Article 4 of Law No 39 of 25 February
2000, the detailed rules for the application of which are laid
down in Article 6 of the draft order, does not constitute State
aid within the meaning of Article 87(1) of the Treaty.

Article 6

1. The aid provided for in Article 6 of Law No 39 of
25 February 2000, the detailed rules for the application of
which are laid down in Article 7 of
is
compatible with the common market where they concern
bergamots as fruit.

the draft order,

2. The aid provided for in Article 6 of Law No 39 of
25 February 2000, the detailed rules for the application of
is
which are laid down in Article 7 of

the draft order,

Done at Brussels, 5 July 2005.

compatible with the common market where they concern
essential oil of bergamot on condition that the concepts of
industrial research and precompetitive activities correspond to
those listed in Annex I to the the Community framework for
State aid for research and development.

Article 7

1. The aid provided for in Article 6 of Law No 39 of
25 February 2000, the detailed rules for the application of
which are laid down in Article 8 of
is
compatible with the common market where it concerns
advertising measures.

the draft order,

2. The aid provided for in Article 6 of Law No 39 of
25 February 2000, the detailed rules for the application of
which are laid down in Article 8 of
is
compatible with the common market where it concerns
promotional measures and measures for the dissemination of
general information for the benefit of bergamot producers.

the draft order,

3. The aid provided for in Article 6 of Law No 39 of
25 February 2000, the detailed rules for the application of
is
which are laid down in Article 8 of
compatible with the common market where it concerns
promotional measures and measures for the dissemination of
general information for producers of essential bergamot oil
which correspond to the Community definition of small and
medium-sized enterprise, provided that the requirements of
Article 5 of Regulation (EC) No 70/2001 are met.

the draft order,

4.
Irrespective of the size of the beneficiary, the aid provided
for in Article 8 of the draft order for promotion and the
dissemination of general
information for producers of
essential bergamot oil does not constitute State aid within
the meaning of Article 87(1) of the Treaty on condition that
all the substantive and formal requirements laid down by
Regulation (EC) No 69/2001 are met.

Article 8

Italy shall inform the Commission, within two months of the
date of notification of this Decision, of the measures taken to
comply with the requirements of Articles 2, 3, 6 and 7.

Article 9

This Decision is addressed to the Italian Republic.

For the Commission
Mariann FISCHER BOEL
Member of the Commission