2008/174/EC: Commission Decision of 21 December 2005 concerning State aid proposed by Italy (Autonomous Province of Trento) in the transport sector (notified under document number C(2005) 5315) (Text with EEA relevance)
Date: 2005-12-21
Institutions: European Commission
Subjects: Italy, State aid, carriage of goods, combined transport, control of State aid, purchase, vehicle

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EN

Official Journal of the European Union

1.3.2008

COMMISSION

COMMISSION DECISION

of 21 December 2005

concerning State aid proposed by Italy (Autonomous Province of Trento) in the transport sector

(notified under document number C(2005) 5315)

(Only the Italian version is authentic)

(Text with EEA relevance)

(2008/174/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,
and in particular
Article 88(2) thereof,

establishing the European
subparagraph of
the

first

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

Having called on interested parties to submit their comments
pursuant to those provisions (1),

Whereas:

1. PROCEEDINGS

(1)

(2)

By letter of 27 November 2001, recorded as received at
the Secretariat-General on 3 December 2001, the Italian
authorities notified the Commission, in accordance with
Article 88(3) of the EC Treaty, of the special provisions
for the transport sector adopted under Law No 6 of the
Autonomous Province of Trento of 13 December 1999
(hereinafter Provincial Law No 6/99). The notification
was
the
by
European Commission as N 833/01.

Secretariat-General of

registered

the

information in its

the Commission
As the notification was incomplete,
letter D(02)
requested additional
to which a reply was
1665 of 1 February 2002,
registered on 5 April 2002. A
received by letter
the
meeting was held between representatives of
the Autonomous Province of
Commission and of
Trento on 11 March 2002. The Commission sent the
Italian authorities a letter requesting further information
on 12 April 2002. A reply to this request was sent by
letter dated 17 May 2002, recorded as received on
28 May 2002 as SG A/5459. A second meeting was
held between representatives of the Commission and of
the Autonomous Province of Trento on 30 May 2002.

(3)

On 24 July 2002, the Commission adopted a favourable
decision (2) regarding most of the measures provided for
in Provincial Law No 6/99 ‘Special provisions for the

(1) OJ C 242, 8.10.2002, p. 8.
(2) See footnote 1.

road freight

sector’ (3) and intended to encourage the
transport
to alternative modes of
transfer of
investigation proceedings were
transport. However,
initiated in connection with one of
the measures
contained in the scheme, namely investment aid for
railway wagons and new or reconditioned rolling stock,
registered as C 52/02.

The decision of 24 July 2002 to initiate proceedings was
published in the Official Journal of the European Union (4).
The Commission called on interested parties to submit
their comments.

Italy submitted its comments by letter dated 4 September
2002. The Commission received no comments from
interested parties.

A new aid scheme aimed at promoting combined
transport in the Autonomous Province of Trento was
notified by the Italian authorities on 7 February 2003
under the title ‘Granting of aid in support of combined
transport’. This aid scheme was registered as N 64/03
and was approved by a Commission Decision of
1 October 2003 (5).

Further clarifications were sent by the Autonomous
Province of Trento on 8 April 2005 and then by letter
recorded as received on 13 June 2005 by the Permanent
Representation.

2. DETAILED DESCRIPTION OF THE AID

2.1. Type of aid

The aid measure in respect of which the investigation
proceedings were initiated concerned investment aid for
railway wagons and new or reconditioned rolling stock;
no objections were
regarding the
remaining measures provided for in the general scheme
aimed at encouraging the transfer of road freight to alter-
native modes of transport.

raised, however,

(4)

(5)

(6)

(7)

(8)

(3) State aid N 833/01 — Italy (Autonomous Province of Trento) —
Provincial Law No 6/99 ‘Special provisions for the transport sector’.

(4) See footnote 1.
(5) OJ C 284, 27.11.2003, p. 2.

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(9)

(10)

(11)

(12)

(13)

impact of

The aim of the general scheme is to reduce the environ-
road haulage by encouraging the
mental
transport equipped with tech-
purchase of means of
environmental pollution and
that
nology
reduces
standards. The
environmental
compulsory
exceeds
scheme concerns aid for small and medium-sized enter-
prises and consortia engaged in road haulage on behalf
of
third parties which carry out combined transport
activities or perform rail and overland transport activities
in any way connected with combined rail transport or
the transport of goods or passengers.

The investigated measure provided for aid of up to 25 %
for small and medium-sized enterprises operating in the
Autonomous Province of Trento for the acquisition of
railway wagons and new or reconditioned rolling stock
(Article 3(2)(e) of Provincial Law No 6/99).

2.2. Grounds for initiating proceedings

The Commission’s decision to initiate the procedure
the Treaty and to
provided for
request clarification from the Italian authorities arose
from an initial examination of the notified scheme.

in Article 88(2) of

(17)

(18)

railway wagons for accompanied combined transport
services for a maximum of three years.

The undertakings benefiting from the subsidies would
still be responsible for the part of the expenditure not
covered by public aid. The Province of Trento would ask
recipients to ensure that the tariffs that they charge are
public and non-discriminatory, i.e. the same for all users
and all sections of the route.

the relevant budget was exhausted. However,

The competent authorities claimed that, given the lack of
intermodal structures, the Province of Trento intended to
finance all business
to provide ultra-low
initiatives
railway wagons on a first-come first-served basis and
it
until
reserved the right, should the budget prove insufficient,
to publish public invitations to apply for aid, giving
priority to those activities involving the highest daily
transshipments onto wagons
frequency of
road/rail
located in the
departing from transshipment points
Province.

(EC) No

Regulation

In particular, the Commission had doubts concerning the
measure’s compatibility with Article 4(2) and (5) of
Commission
of
12 January 2001 on the application of Articles 87 and
88 of the EC Treaty to small and medium-sized enter-
prises (6) which would limit the gross aid intensity of
investment in railway wagons to 15 % in the case of
small enterprises and to 7,5 % in the case of medium-
sized enterprises.

70/2001

could

(25 %)

the notified aid
The Commission doubted whether
intensity
the
be
maximum aid intensity allowed under Article 4(2) of
Regulation (EC) No 70/2001. Non-compliance with the
thresholds indicated in Regulation (EC) No 70/2001 was
the only reason for initiating investigation proceedings.

compatible with

(14)

The Commission received no comments from interested
parties.

3. COMMENTS FROM ITALY

(15)

By letter of 4 September 2004, the Italian authorities, via
their Permanent Representation, stated their intention to
grant aid not exceeding 15 % to small enterprises and
not exceeding 7,5 % to medium-sized enterprises in
respect of the costs of acquisition of railway wagons
and new or reconditioned rolling stock.

(16)

Their intention was that this aid should be combined
with the financing of 25 % of the costs connected with
the leasing, amortisation or hire of special ultra-low

(6) OJ L 10, 13.1.2001, p. 33.

(19)

It should be noted, however, that the latter measure was
not
the
included in the initial notification. Moreover,
Autonomous Province of Trento confirmed on 8 April
2005 that the measure had never been put in place and
that there was no longer any intention to implement it.

4. ASSESSMENT OF THE MEASURE

4.1. Existence of

aid within the meaning of

Article 87(1) of the EC Treaty

(20)

Pursuant to Article 87(1) of the EC Treaty, and unless
otherwise provided for in that Treaty, any aid granted by
a Member State which distorts or threatens to distort
competition is incompatible with the common market
if it affects trade between Member States.

(21) Under the proposed aid measure, the preselected benefi-
ciaries (small and medium-sized enterprises operating in
the Autonomous Province of Trento) would receive State
contributions for costs arising from investment in railway
wagons
enterprises,
whether Italian or from other EU Member States, that
are active in this field would not receive such contri-
butions. The
competitive
situation of
the recipients vis-à-vis other operators
engaged in intra-Community trade.

and rolling stock, while other

reinforces

aid thus

the

(22)

In view of the above, the Commission finds that the
notified aid measure involves aid within the meaning
of Article 87(1) and is hence, in principle, prohibited.

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4.2. Assessment of

the compatibility of
measure

the aid

HAS ADOPTED THE FOLLOWING DECISION:

(23) After investigation proceedings were initiated, the Italian
authorities agreed to reduce the planned aid intensity of
25 % for the acquisition of railway wagons and new or
reconditioned rolling stock to 15 % for small enterprises
and 7,5 % for medium-sized enterprises. The aid measure
concerns only aid to small and medium-sized enterprises.

Article 1

The State aid proposed by Italy (Autonomous Province of Trento) in
the transport sector is compatible with the common market.

The aid may therefore be implemented.

Article 2

(24)

The aid can be therefore be considered to be in line with
Article 4(2) of Regulation (EC) No 70/2001.

This Decision is addressed to the Italian Republic.

(25)

In view of the above, the Commission can therefore now
declare this aid to be compatible with the Treaty.

Done at Brussels, 21 December 2005.

5. CONCLUSION

The Commission

For the Commission

Jacques BARROT
Vice-President