2008/208/EC: Commission Decision of 23 October 2007 on the State aid C 30/2006 (ex N 367/05 and N 623/05) which Italy is planning to implement as an amendment to an existing scheme for excise duty reduction for biofuels (notified under document number C(2007) 5091) (Text with EEA relevance)
Date: 2007-10-23
Institutions: European Commission
Subjects: Italy, State aid, control of State aid, excise duty, fuel tax, substitute fuel, tax on consumption, tax system

8.3.2008

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Official Journal of the European Union

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COMMISSION

COMMISSION DECISION

of 23 October 2007

on the State aid C 30/2006 (ex N 367/05 and N 623/05) which Italy is planning to implement as an
amendment to an existing scheme for excise duty reduction for biofuels

(notified under document number C(2007) 5091)

(Only the Italian version is authentic)

(Text with EEA relevance)

(2008/208/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 provision(s) (1) and having regard to their
comments,

(3)

Whereas:

(1)

I. PROCEDURE

the authorities of

By letter of 26 July 2005, registered on 29 July 2005,
the authorities of Italy notified, according to Article 88(3)
of the EC Treaty, the aid measure N 367/2005 in the
simplified procedure. By letter of 28 September 2005,
registered on the same day,
Italy
notified, according to Article 88(3) of the EC Treaty,
the aid measure N 623/2005 also in the simplified
procedure. The notification registered under the number
N 367/05 concerned modifications to an existing aid
scheme, authorised by the Commission until the end of
the year 2005 under aid number N 717/2002 (2) and the
notification registered under the number N 623/05 is a
prolongation of the modified scheme until the end of the
year 2007.

the Commission Services

21 November 2005,
registered on the same days.
Following a meeting between the representatives of
Italy and of the Services of the European Commission
on 9 December 2005 that took place on the request of
letter on
Italy,
19 December 2005 summarizing all open issues. The
Italian authorities submitted missing information in two
letters: on 28 February 2006 registered on 1 March 2006
and on 28 April 2006 registered on 5 May 2006. The
second letter followed a meeting of
Italy and of the
European Commission that
took place on 15 March
2006 and a letter sent to Italy on 24 March 2006.

sent

a

By letter dated 7 June 2006, the Commission informed
Italy that it had decided to initiate the procedure laid
down in Article 88(2) of the EC Treaty in respect of
the measure. The two notifications (N 623/05 and N
367/05) had the same subject-matter and therefore, and
for reasons of procedural efficiency,
the Commission
took one decision on both notifications. Furthermore,
the Commission considered all correspondence with
Italy concerning the notification N 367/05 as corre-
spondence concerning also notification N 623/05. The
Commission took the decision in the normal procedure
due to the fact that Italy did not deliver the annual report
as required by Article 4 of Commission Regulation (EC)
No 794/2004 (3)
procedure.
Moreover the changes introduced to the scheme turned
out being an alteration to an existing aid in the meaning
of Article 4(1) of the above mentioned Regulation and
therefore requiring evaluation of their compatibility with
the common market.

concerning

simplified

(2)

By letters dated 29 August 2005 and 21 October 2005,
the Commission asked for additional information, which
was received by letters dated 27 September 2005 and

(4)

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

(1) OJ C 157, 6.7.2006, p. 8.
(2) OJ C 16, 22.1.2004, p. 23.

(3) OJ L 140, 30.4.2004, p. 1.
(4) OJ C 218, 9.9.2006, p. 2.

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(5)

(6)

The Commission received comments from interested
parties. It forwarded them to Italy, which was given the
opportunity to react;
its comments were received by
letters dated 28 November 2006 and 10 April 2007.

By letter dated 16 July 2007 the Commission asked for
additional
information, which was received by letter
dated 6 August 2007.

II. DESCRIPTION OF THE MEASURE

(7)

Both notifications concern amendments to an existing
aid scheme.

(8)

(9)

(10)

2.1. Existing Scheme

The scheme authorised by the Commission under aid
number N 717/2002 reduces excise duty for bioethanol
and its derivatives (ETBE) as well as for additives and
reformulates derived from other types of biomass for
petrol and diesel, but not for biodiesel. The bioethanol
is an agricultural product. It is 100 % from renewable
origin. ETBE (ethyl-tertio-butyl-ether), which is etherised
bioethanol,
is derivable from agricultural alcohol. It is
obtained through the reaction of bioethanol with isobu-
tylene and is only 47 % from renewable origin. The only
biomass-derived additive known so far
is diethyl
carbonate which can be used as additive for diesel.

The biofuels may be used in a blended or a pure form.
The two blended end products which will benefit from
the reduction will be the mix bioethanol-fuel (5 %-95 %)
and the mix ETBE-fuel (15 %-85 %).

The project aims at encouraging the use of biofuels
produced from wine, cereals and sugar beet and sugar
beet and molasses. The beneficiaries of the aid are parti-
cipants of an experimental project. Under
the aid
measure N 717/2002 three companies were selected in
an open tender: Ecofuel SpA, Milan as producer of ETBE
and IMA srl, Partinico, Palermo and Silcoma SpA,
Corregio, Reggio Emilia as producers of bioethanol. The
tender was open to all EU undertakings producing the
respective biofuels and complying with the conditions set
out in the decree on tender procedure.

(11)

The measure was set to apply for three years: from 2003
to 2005. The foreseen total budget was EUR 15 493 706
per year including VAT. However,
the aid has been
granted from the beginning of the year 2005, due to
delay in the tender procedure.

Biofuels

Normal
rate

Rebate

Reduced
rate

Bioethanol

ETBE

Other additives and blends
(for petrol)

Other additives and blends
(for diesel)

In Euro per litre

0,26

0,281

0,25427

0,28673

0,26

0,281

0,16

0,243

0,541
(petrol)

0,541
(petrol)

0,541
(petrol)

0,403
(diesel)

(13)

The approved tax rebate per one litre of ETBE is
equivalent to a complete tax exemption per 0,47 litre
of ETBE, which is
the part of ETBE derived from
biomass (1).

(14)

(15)

(16)

The excise duty rebate applies to pure and blended
biofuels. As far as biofuels blended with fossil fuels are
concerned Italy confirmed that the excise duty rebate
would be proportioned to the volume of biofuel
contained in the end product.

In its decision N 717/2002 the Commission concluded
that the rebates did not exceed the difference between the
costs of producing energy from biofuels and the market
price of that energy. Therefore the Commission excluded
overcompensation for the biofuels production.

2.2. Notified changes

of

2005)

finanziaria

Furthermore,

Italy notified under the number N 367/2005 an increase
of the annual total budget of the scheme to EUR 73
Italy notified
million including VAT.
under the number N 623/05 a prolongation of
the
existing measure until the end of the year 2007. The
legal basis for both amendments is the Law No 311
(Legge
These
amendments have been introduced in order to make
to the major
the program more meaningful due
at
changes
the
regarding
the Directive
Community level
the
2003/30/EC of
Council of 8 May 2003 on the promotion of the use
of biofuels or other renewable fuels for transport (2) and
of
the Council Directive 2003/96/EC of 27 October
2003 restructuring the Community framework for the
taxation of energy products and electricity (3)).

the policy on biofuels
introducing of
the European Parliament and of

30.12.2004.

(e.g.

(12)

The approved advantage in terms of the reduced rate for
the period from the year 2003 to 2005 was as follows
(all reductions are granted per one litre of the biofuel
concerned):

(1) In accordance with Article 2(2)(f) of the Directive 2003/30/EC on

biofuels (OJ L 123, 17.5.2003).

(2) OJ L 123, 17.5.2003, p. 42.
(3) OJ L 283, 31.10.2003, p. 51.

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(17)

(18)

(19)

(20)

(21)

For the new measure a new open tender procedure will
be established. The Italian authorities underlined that the
three beneficiaries selected in an open tender under the
existing scheme N 717/2002 will not necessarily be the
beneficiaries under the new scheme.

In addition Italy informed about higher excise tax
reductions for biofuels and higher excise tax rates for
fossil fuels and delivered updated production cost calcu-
lations for bioethanol and for bio-ETBE. The notified
excise tax rates are as follows:

Biofuels

Normal
rate

Reduction

Reduced
rate

Bioethanol

Bio-ETBE

In Euro per litre

0,275

0,289

0,265

0,299

(23)

0,564
(petrol)

0,564
(petrol)

to

by

aid

Italy

granted

recovery decisions,

the Italian authorities suspend the payment of new aid
under the current scheme to those firms that have not
reimbursed the incompatible aid in compliance with
earlier
(in particular with the
Commission Decision 2000/128/EC of 11 May 1999
concerning
promote
employment (2), Commission Decision 2003/193/EC of
5 June 2002 concerning tax exemption and privileged
loans in favour of public utilities in Italy (3), Commission
Decision 2004/800/EC of 30 March 2004 on the State
aid scheme put into effect by Italy providing for urgent
measures to assist employment (4), and for Commission
Decision 2005/315/EC of 20 October 2004 on the aid
scheme implemented by Italy for
firms investing in
municipalities seriously affected by natural disasters in
2002 (5)) in order to enable to the Commission to take
into account in its assessment the cumulated distortion
of new aid and old incompatible aid which has not been
recovered.

such a
Italian authorities declined to make
The
in their
commitment. Moreover, they have stated that,
Justice judgment of 15 May 1997 (6)
view, Court of
jurisprudence’) — on the
(hereafter
basis of which the Commission has to control cumu-
lation between old and new aid — should not apply to
aid schemes.

‘the Deggendorf

The notified tax rebate for bio-ETBE (EUR 0,265 per one
litre) is equivalent to a complete tax exemption per 0,47
litre of ETBE, which is the part of bio-ETBE derived from
biomass.

increased by EUR
The production costs of bioethanol
32/1 000L due to an increase in costs of raw materials
(sugar beet and molasses) and intermediate processing
and logistics. The increase of bio-ETBE production costs
(consequence of bioethanol becoming more expensive)
was balanced with an increase in by-products selling
prices. The reference price of fossil fuels that has been
used for comparisons with the prices of biofuels was
EUR 0,453/L (1). The production costs and the price of
fossil fuels have been used in point 39 to calculate the
extra production costs of biofuels eligible for aid.

to monitor every six months

the
Italy undertakes
fossil
production costs of biofuels and the price of
fuels and,
the rebate in the
excise duty rate so as to avoid any overcompensation
of production costs throughout the duration of the aid
in question.

if necessary,

to adjust

(22)

In its letters of 21 October 2005, 19 December 2005
and 24 March 2006, the Commission has requested that

(1) The price of fossil fuels is the annual average value for 2005 of the
market price of fossil fuels. All changes in the production costs data
are based on the observations for the year 2005 and are justified by
movements of market prices.

(24)

The Italian authorities underlined that the three benefi-
ciaries selected in an open tender under the existing
scheme N 717/2002 (see point 6) will not be necessarily
the beneficiaries under the new scheme.

(25)

The notification registered under the number N 623/05,
extends the scheme modified under the notification N
367/05 from the end of the year 2005 until the end
of the year 2007.

III. GROUNDS FOR INITIATING THE ARTICLE 88(2)
PROCEDURE

(26)

The Italian authorities refused to give a commitment to
suspend the granting of new aid under the current
scheme to firms which have not reimbursed the incom-
patible aid in compliance with the previous recovery
decision. Therefore the Commission found it impossible
to take into account
the cumulated distortion arising
from the old aid and the new aid.

(2) OJ L 42, 15.2.2000, p. 1.
(3) OJ L 77, 24.3.2003, p. 21.
(4) OJ L 352, 27.11.2004, p. 10.
(5) OJ L 100, 20.4.2005, p. 46.
(6) Case C-355/95P Textilwerke Deggendorf GmbH (TWD) v Commission

[1997] ECR I-2549, paragraphs 25-27.

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(27)

(28)

IV. COMMENTS FROM INTERESTED PARTIES

(34)

initiation of

The only third party which submitted its comments on
the
the procedure was Associazione
Nazionale Industriali Distilatori di Alcoli e di Acquaviti
(AssoDistil).

The AssoDistil stressed that
measure notified are not known and it
foregone conclusion that
those which benefited under the previous measure.

the
is not a
they will be the same as

the beneficiaries of

favours

for part of

certain undertakings

Excise tax reduction is granted from State resources. The
this measure is to compensate the biofuels
aim of
producers
their production costs. By
reducing the tax obligation imposed on the products,
and the
the measure
production of certain goods. Consequently the prices
for biofuels can be lowered to a level that is competitive
with fossil fuels. Since biofuels serve as substitute for
fossil fuels, this advantage may distort competition in
the internal EU-market. As fuels are tradable interna-
tionally,
trade
between Member States and therefore constitutes State
aid pursuant to Article 87(1) of the EC Treaty.

the measure is also likely to affect

(29) AssoDistil

informed also the Commission that

it
suggested to the Italian authorities
to undertake to
insert a clause in the tender procedure for biofuels that
would make the right to take part in the procedure for
new aid conditional on non-cumulation of aid with
previous incompatible aid and that payment of the new
aid will be suspended if
the beneficiary still has to
reimburse old incompatible aid.

V. COMMENTS FROM ITALY

(30)

By letter received on 10 April 2007 the Italian autho-
rities, committed themselves to insert in the tender for
biofuels a clause that subordinates the right to participate
in the selection process to the absence of cumulus with
precedent illegal aids. Furthermore, the Italian authorities
commit themselves to suspend the payment of new aids
whereas the beneficiary still has to repay incompatible
aids.

(31)

The Italian authorities excluded that the commitment can
constitute a precedent for other schemes that will be
notified in the future. They stressed that the commitment
is given only with regard to the present aid in consi-
deration of its particular characteristics.

VI. ASSESSMENT OF THE MEASURE

(32)

Italy has notified the measure to the Commission and its
entry into force is subject to the Commission’s approval,
so Italy has
complied with its obligations under
Article 88(3) of the EC Treaty. The notified amendments
in the scheme concern the increase in the budget of the
scheme and the duration. The Commission has been also
informed about the change in the excise reduction and
modifications in calculating biofuels production costs.

Existence of aid within the meaning of Article 87(1)
of the EC Treaty

(33) According to Article 87 of the EC Treaty, State aid is (a)
any aid granted by a Member State or through State
resources
by
distorts
favouring certain undertakings,
insofar as it affects
trade between Member States.

competition

(b) which

(d)

(c)

Exemption under Article 87(3)(c) of the EC Treaty

(35) Article 87(3)(c) of the EC Treaty provides an exemption
incompatibility with the
from the general
rule of
common market as stated in paragraph (1) of
that
Article for aid to facilitate the development of certain
economic activities or of certain economic areas, where
such aid does not adversely affect trading conditions to
an extent contrary to the common interest.

(36)

(37)

as

and

energies,

of 2003 by

The proposed aid measures are designed to enhance the
use of environmentally friendly fuels in order to reduce
the emission of greenhouse gases. The development of
especially biofuels (1), has been
renewable
encouraged since 1995 by numerous Community
measures (2)
the Directive
2003/30/EC of
the
Council on the promotion of
the use of biofuels or
(‘Biofuels
for
other
Directive’) (3). According to Article 3 of this Directive
Member
a minimum
proportion of biofuels is put on their markets. It sets
for the national targets a reference value of 5,75 % that
should be achieved by 31 December 2010.

the European Parliament and of

renewable

transport

should

ensure

States

fuels

that

The objectives of the present scheme are in line with EU
policy in this sector. The Commission has to assess the
notified measure
the Community
Guidelines on State aid for environmental protection (4)
unless the aid is granted to support products which fall
under the list in Annex I of the Treaty, which is the list
of products covered by Title II on Agriculture.

light of

in the

(1) Biofuels are included in the definition of renewable energy sources
of Directive 2001/77/EC of the European Parliament and of the
Council of 27.9.2001 on the promotion of electricity produced
from renewable energy sources in the internal electricity market
(OJ L 283, 27.10.2001, p. 33).

(2) Among others, the White Paper of 1997 on renewable energies
the Commission Green
(COM(1997) 599 final of 26.11.1997),
paper
European Union
the
in
safety
(COM(2000) 769 of 29.11.2000), the Commission's communication
on alternative fuels for road transport and on a set of measures to
promote the use of biofuels (COM(2001) 547 of 7.11.2001).

energy

supply

on

(3) OJ L 123, 17.5.2003.
(4) OJ C 37, 3.2.2001, p. 3.

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(38) According to section E.3.3 of

the Environmental
Guidelines, operating aid in favour of the production of
renewable energy can be allowable. The Commission
such aid qualifies
takes
special
the view that
the difficulties these sources of
treatment because of
energy have sometimes encountered in competing effec-
tively with conventional energy sources.

for

(39)

Point 56 of the Environmental Guidelines allows for the
costs of
aid to cover

the difference between the

producing energy from renewable source and the market
price of that energy. This is further developed in points
59 and 60 of the Community Guidelines. From the tables
below, which are based on the information supplied by
Italy, it is clear that the aid enables producers to sell the
blended fuel at a price that is just sufficient to compete
with the fossil fuel. It is ensured that this will remain to
be the case during the entire period of
the scheme
because Italy confirmed that the changes in fossil fuel
price and biofuels production costs will be monitored
every six months and if necessary the aid level will be
adjusted.

Production costs for 1 000 litres

Sugar b./
molasses

Cereal

Wine

Bio-ETBE

Bioethanol

A) Raw materials

270,00

380,00

650,00 Bioethanol: 334,10
Refined (1): 400,00

B) Labour

30,00

30,00

30,00

C) Capital repayments

30,00

30,00

30,00

D)

Intermediate processing

205,00

215,00

195,00

E) Transport costs

22,00

22,00

22,00

21,50

9,70

37,10

F) By-product selling price

– 130,00

– 149,00

G) Production costs

(A + B + C + D + E + F)

557,00

530,00

910,00

653,40

H) Profit margin 5 %

27,85

27,35

46,35

32,67

I)

Energy content adjustment factor (*)

270,36

265,50

449,94

110,46

J) Total, excluding taxes

(G + H + I)

855,21

839,85

1 428,29

796,53

K) Biofuels detaxation

274,78

274,78

274,78

265,08

L) Price for biofuels (J – K)

580,42

565,07

1 148,51

531,45

M) Reference price of

fossil

fuels excl.

453,00

453,00

453,00

453,00

taxes

Difference (L – M) (**)

127,43

112,07

695,51

78,45

(*) The energy adjustment factor has been calculated in the following way: for bioethanol (31/21,2 – 1) × 100 %, for bio-ETBE

(31/26,7 – 1) × 100 %. The sum of lines G and H has to be multiplied with these factors.

(**) If the difference is positive than the level of aid is allowable. If the difference is negative then the level of aid is too high and

results with overcompensation.

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(40) Apart

from the

can benefit

from bioethanol

and bio-ETBE the notified
measure also foresees that additives and reformulates
derived from biomass
tax
reduction. The only potential biomass-derived additive
and reformulate known so far is diethyl carbonate. As
this product is however not in the market yet, no infor-
mation on production costs is available. The same holds
for further potential biomass-derived additives and refor-
mulates, which are not known yet but which might be
introduced under the scheme in the future. European
Commission notes that Italy committed itself under the
scheme approved under the decision N 717/2002 (1) to
carry out an analysis, as soon as a new product will
benefit
the
reduction will not lead to overcompensation. This infor-
mation will also be submitted to the Commission in the
annual monitoring reports.

from the tax reduction,

to ensure that

(41)

Cereals, sugar beet and molasses and wine used to
produce biofuels in the scheme at hand fall within
Chapter 10, Chapter 17.03 and Chapter 22.05 of the
list in Annex I of the Treaty respectively, which is the
list of products covered by Title II on Agriculture. The
the
aid for these products falls within the scope of
Community Guidelines for State aid in the agriculture
sector and is excluded from the scope of the Environ-
mental Guidelines in conformity with point 7 of the
the Community
latter. According to point 194 of
Guidelines for State aid in the agriculture and forestry
sector 2007 to 2013 (2), for notifications pending on
1 January 2007 the Guidelines of year 2000 (3) will
remain applicable. Section 5.5.3 of the Agricultural Aid
Guidelines stipulates that in duly justified cases, such as
aid for the development of biofuels, the Commission
may also approve operating aid in cases where these
can clearly be shown to be necessary to offset the addi-
tional cost arising from the use of environmentally
conventional
friendly
production processes. The aid component should be
limited to neutralising the effects of the additional costs
and should be subject to a periodic review at least every
five years. Since the aid under scrutiny in the present case
only concerns biofuels which without aid would not be
competitive in the market, and since the aid level will be
revised and adjusted annually to avoid overcompensation
of
the notified aid scheme
the biofuel production,
complies with these conditions.

comparison

inputs

to

in

framework for the taxation of energy products and elec-
tricity (‘Energy Tax Directive’) (4).

(43) Article 16(1) of this Directive allows Member States to
apply an exemption or a reduced rate of taxation on
biofuels. However, Article 16(2) of the same Directive
limits the exemption or reduction in taxation to the
part of the product that actually derives from biomass.
While bioethanol
is completely derived from biomass,
only 47 % of one litre of ETBE is derived from
biomass. The excise reduction for bio-ETBE introduced
by Italy (EUR 0,26508) equals 47 % of the normal excise
rate (EUR 0,564). It is a complete tax exemption of the
biomass part of ETBE and it respects provisions of
Article 16(2).

(44)

The excise duty reduction applies to pure and blended
biofuels. Concerning biofuels blended with fossil fuel, the
reduction of excise duty will be proportionate to the
volume of biofuel in the end product. Thus the higher
the percentage of biofuel in the end product, the greater
the value of the potential reduction of excise duty on the
end product.

(45)

The notified scheme respects also Article 16(3) of the
Energy Tax Directive which requires that the reduction
in taxation shall be adjusted to take account of changes
in raw material prices to avoid overcompensating for the
extra costs involved in the manufacture of biofuels.

(46)

respective

The measure is open to all EU undertakings producing
the
the
and
conditions set out in the decree on tender procedure. It
is therefore not discriminating.

complying with

biofuels

(42) As the measure concerns an excise tax rebate for an
energy product, the Commission will also assess it with
to the Council Directive 2003/96/EC of
respect
the Community
27 October

restructuring

2003

(1) OJ C 16, 22.1.2004, p. 23.
(2) OJ C 319, 27.12.2006, p. 1.
(3) OJ C 28, 1.2.2000, p. 2.

(47)

The Commission notes
the
that
measure is not currently in force and will be applied
only after the Commission has authorised it.

Italy ensured that

(48)

The Commission also notes that the original measure has
been prolonged and the new measure is limited in time
until the 31 December 2007.

(4) OJ L 283, 31.10.2003, p. 51.

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(49)

(50)

the

excise

in particular under

Further, the Commission pointed out the problem of
potential cumulation of the distortion arising from the
aid under
reduction scheme and other
distortions deriving from other illegal and incompatible
the schemes mentioned in
aid,
paragraph 22, which has not yet been reimbursed.
According to the Deggendorf jurisprudence, the compat-
ibility of new aid could depend on the existence of any
previous unlawful aid that has not been repaid, since the
cumulative effect of the aid could distort competition in
the common market to a significant extent.

jurisprudence,

The Commission notes that, as regards the application of
the Italian authorities
the Deggendorf
undertook,
in the context of this measure, committed
themselves to insert in the tender for bio-fuels a clause
that subordinates the right to participate in the selection
process to the absence of cumulus with precedent illegal
aids. Furthermore, the Italian authorities commit them-
selves to suspend the payment of new aids whereas the
beneficiary still has to repay incompatible aids mentioned
by the Commission in its decision initiating the
procedure.

(51)

The Commission further notes that during the procedure
under Article 88(2) of the EC Treaty it did not receive
any comments from third parties that the proposed aid
may affect trading conditions and distort competition to
an extent contrary to the common interest.

VII. CONCLUSIONS

(52) On the basis of the foregoing, the Commission concludes
that the measure complies with the relevant provisions of
the Environmental Aid Guidelines, the Agricultural Aid

Guidelines and the relevant provisions of the Energy Tax
Directive. Furthermore, Italy has undertaken to suspend
the granting of new aid under the current scheme to
firms which have not reimbursed the incompatible aid
recovery
in compliance with the relevant previous
deemed
decision. The measure
can therefore be
compatible with the
to
Article 87(3)(c) of the Treaty,

common market pursuant

HAS ADOPTED THIS DECISION:

Article 1

The measure which Italy is planning to implement on the basis
of Article 1, paragraph 520 of Law No 311 of 30 December
2004, with an annual budget of EUR 73 million, and consisting
in the amendment and prolongation of an existing scheme for
excise duty reduction for biofuels until 31 December 2007 is
compatible with the common market.

Implementation of the measure is accordingly authorised.

Article 2

This Decision is addressed to the Republic of Italy.

Done in Brussels, 23 October 2007.

For the Commission

Neelie KROES
Member of the Commission