WRITTEN QUESTION No. 300/99 by Cristiana MUSCARDINI Subsidies for pig farmers
C 341/86 Official Journal of the European Communities EN 29. 11. 1999 The Commission awaits the official reaction of the Argentine authorities to this document. At an informal meeting between the Commission and the Argentine authorities on 2 March the latter stated that they intended to formulate a reply before the summer. (1) OJ C 207, 21. 7. 1999, p. 74. (1999/C 341/119) WRITTEN QUESTION E-0300/99 by Cristiana Muscardini (NI) to the Commission (17 February 1999) Subject: Subsidies for pig farmers Can the Commission confirm whether the French and Spanish governments have decided to grant ‘funding facilities’ to pig farmers to enable them to survive the crisis affecting that sector? If so, does the Commission agree that this form of aid encourages unfair competition in that other countries whose pig-rearing sectors are facing similar problems are not assisting their producers by the provision of special funding? Can the Commision state whether such differences in treatment are permissible under current rules to ensure the smooth functioning of the internal market? Answer given by Mr Fischler on behalf of the Commission (22 March 1999) The Commission can confirm that the French government has granted certain aids to pig producers. The Commission has launched a formal investigation into these aid measures in accordance with the procedure laid down in Article 93(2) of the EC Treaty. The Commission’s letter to the French authorities is published in the Official journal (1), in order to provide an opportunity for interested parties to comment. In Spain, it appears that certain aids may have been granted in favour of the pig sector by the central government and by certain regional authorities. The Commission is in contact with the Spanish authorities to clarify the nature of the measures concerned. Article 92(1) of the EC Treaty provides that any aid granted by a Member State or through state resources in any form whatsoever which distorts or threatens to distort the conditions of competition in the common market 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. However, the prohibition is not absolute. In particular, Article 92(3)(c) of the EC Treaty provides that aid to facilitate the development of certain economic activities may be considered compatible with the common market, provided that it does not affect trading interests to an extent contrary to the common interest. Where aid is being granted to producers in financial difficulty, the Commission will permit such aid only if it is granted in accordance with the criteria set out in the Commission’s guidelines on state aid for rescuing and restructuring firms in difficulty (2). (1) OJ C 61, 3. 3. 1999. (2) OJ C 283, 19. 9. 1997