1 BY APPLICATION LODGED AT THE COURT REGISTRY ON 9 AUGUST 1982 , THE COMMISSION OF THE EUROPEAN COMMUNITIES BROUGHT AN ACTION PURSUANT TO THE SECOND SUBPARAGRAPH OF ARTICLE 93 ( 2 ) OF THE EEC TREATY FOR A DECLARATION THAT THE ITALIAN REPUBLIC HAD FAILED TO FULFIL ONE OF ITS OBLIGATIONS UNDER THE EEC TREATY BY NOT COMPLYING WITHIN THE PRESCRIBED PERIOD WITH COMMISSION DECISION 80/932/EEC OF 15 SEPTEMBER 1980 CONCERNING THE PARTIAL TAKING OVER BY THE STATE OF EMPLOYERS ' CONTRIBUTIONS TO SICKNESS INSURANCE SCHEMES IN ITALY ( OFFICIAL JOURNAL 1980 , L 264 , P . 28 ).
2 BY DECREE LAW NO 353 OF 6 JULY 1978 ( GAZZETTA UFFICIALE NO 192 ), CONVERTED INTO LAW NO 502 OF 5 AUGUST 1978 ( GAZZETTA UFFICIALE NO 246 ), THE ITALIAN GOVERNMENT INTRODUCED A PARTIAL TAKING OVER BY THE STATE OF THE EMPLOYERS ' CONTRIBUTIONS WHICH INDUSTRIAL UNDERTAKINGS AND CERTAIN UNDERTAKINGS IN THE SERVICES SECTOR HAVE TO PAY ON BEHALF OF THEIR EMPLOYEES FOR SICKNESS INSURANCE . THAT TAKING OVER BY THE STATE , WHICH WAS INITIALLY LAID DOWN FOR A TRANSITIONAL PERIOD OF SIX MONTHS , WAS SUBSEQUENTLY EXTENDED SEVERAL TIMES AND MADE DEFINITIVE BY DECREE LAW NO 663 OF 30 DECEMBER 1979 ( GAZZETTA UFFICIALE NO 355 ).
3 THE FIRST PARAGRAPH OF ARTICLE 22 OF THE AFOREMENTIONED DECREE LAW NO 663 PROVIDES THAT : ' ' WITH EFFECT FROM THE CONTRIBUTION PERIOD FOLLOWING THE ONE APPLYING ON 31 DECEMBER 1979 , THE TOTAL LEVELS OF CONTRIBUTIONS FOR COMPULSORY SICKNESS INSURANCE PAYABLE BY UNDERTAKINGS . . . ARE REDUCED BY FOUR PERCENTAGE POINTS FOR MALE EMPLOYEES AND BY TEN PERCENTAGE POINTS FOR FEMALE EMPLOYEES . ' '
4 THE COMMISSION CONSIDERED THAT SUCH A SYSTEM CONSTITUTED AN AID INCOMPATIBLE WITH THE COMMON MARKET WITHIN THE MEANING OF ARTICLE 92 OF THE EEC TREATY , SINCE THAT TAKING OVER BY THE STATE ENTAILED A GREATER REDUCTION IN EMPLOYERS ' CONTRIBUTIONS TO THE SICKNESS INSURANCE SCHEME FOR FEMALE EMPLOYEES THAN FOR MALE EMPLOYEES THEREBY FAVOURING CERTAIN ITALIAN INDUSTRIES EMPLOYING LARGE NUMBERS OF FEMALE EMPLOYEES , SUCH AS , IN PARTICULAR , THOSE IN THE TEXTILE , CLOTHING , FOOTWEAR AND LEATHER-GOODS SECTOR . CONSEQUENTLY , ON 15 SEPTEMBER IT ADOPTED A DECISION ( NOTIFIED TO THE ITALIAN GOVERNMENT ON 17 SEPTEMBER 1980 ) WHICH PROVIDES IN PARTICULAR : ' ' ARTICLE 1 THE ITALIAN REPUBLIC SHALL WITHIN SIX MONTHS REMOVE THE DIFFERENCE PROVIDED FOR IN ARTICLE 22 OF DECREE NO 663 OF 30 DECEMBER 1979 IN THE RATE OF REDUCTION OF EMPLOYERS ' SICKNESS INSURANCE CONTRIBUTIONS AS BETWEEN MALE AND FEMALE EMPLOYEES . ARTICLE 2 THE ITALIAN REPUBLIC SHALL COMMUNICATE TO THE COMMISSION THE LAWS , REGULATIONS AND ADMINISTRATIVE PROVISIONS ADOPTED TO COMPLY WITH THIS DECISION NOT LATER THAN THE END OF THE PERIOD LAID DOWN IN ARTICLE 1 . ' '
5 THE ITALIAN GOVERNMENT DOES NOT DISPUTE THAT DECISION . ON THE CONTRARY , BY A LETTER OF 18 FEBRUARY 1981 , IT NOTIFIED THE COMMISSION THAT IT HAD TAKEN COGNIZANCE OF THE DECISION AND INTENDED TO COMPLY WITH IT WHEN THE PROVISIONS GOVERNING CONTRIBUTIONS FOR MEDICAL CARE WERE AMENDED .
6 BY LETTER OF 12 MAY 1981 , THE COMMISSION , EXCEPTIONALLY , AUTHORIZED THE EXTENSION UNTIL 30 JUNE 1981 OF THE PERIOD FOR COMPLYING WITH THE DECISION , ' ' ON THE CLEAR UNDERSTANDING THAT FROM THAT DATE ANY DIFFERENTIATION BETWEEN MEN AND WOMEN IN THE LEVEL OF THE SAID REDUCTION WILL BE DEFINITIVELY ABOLISHED ' ' .
7 BY A SERIES OF DECREE LAWS , LATER CONVERTED INTO LAWS , AND IN THE LAST INSTANCE BY DECREE LAW NO 17 OF 29 JANUARY 1983 , CONVERTED INTO LAW NO 79 OF 25 MARCH 1983 , ITALY SET BACK REPEATEDLY THE EFFECTIVE EXPIRY DATE OF THE DISPUTED MEASURE . ACCORDING TO THE ITALIAN GOVERNMENT THAT EXTENSION WAS NECESSARY BECAUSE OF ITS INTENTION TO REORGANIZE THE ENTIRE SYSTEM .
8 THE EXPLANATIONS PROVIDED BY THE ITALIAN GOVERNMENT DO NOT AFFECT IN THE SLIGHTEST THE FACT THAT THE DISPUTED AID HAS , CONTRARY TO THE COMMISSION DECISION , REMAINED IN FORCE AFTER 30 JUNE 1981 AND EVEN UP TO THE DATE OF THE ORAL PROCEDURE BEFORE THE COURT .
9 IT MUST THEREFORE BE HELD THAT BY FAILING TO COMPLY WITHIN THE PRESCRIBED PERIOD WITH COMMISSION DECISION 80/932/EEC OF 15 SEPTEMBER 1980 CONCERNING THE PARTIAL TAKING OVER BY THE STATE OF EMPLOYERS ' CONTRIBUTIONS TO SICKNESS INSURANCE SCHEMES IN ITALY ( OFFICIAL JOURNAL 1980 , L 264 , P . 28 ), THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY .