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( 1 ) OJ N L 96 , 23 . 4 . 1972 , P . 1 .

( 2 ) OJ N L 128 , 19 . 5 . 1975 , P . 1 .

COUNCIL DECISION

OF 6 APRIL 1976

ON THE LEVEL OF THE INTEREST RATE SUBSIDY , PROVIDED FOR BY DIRECTIVE 72/159/EEC ON THE MODERNIZATION OF FARMS , TO BE APPLIED IN ITALY

( 76/402/EEC )

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ,

HAVING REGARD TO COUNCIL DIRECTIVE 72/159/EEC OF 17 APRIL 1972 ON THE MODERNIZATION OF FARMS ( 1 ) , AND IN PARTICULAR THE SECOND SUBPARAGRAPH OF ARTICLE 8 ( 2 ) AND THE SECOND SUBPARAGRAPH OF ARTICLE 19 ( 1 ) THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

WHEREAS THE SECOND SUBPARAGRAPH OF ARTICLE 8 ( 2 ) OF DIRECTIVE 72/159/EEC PROVIDES THAT MEMBER STATES MAY BE AUTHORIZED TO GRANT INTEREST RATE SUBSIDIES EXCEEDING 5 % , IF SUCH ACTION IS WARRANTED BY THE SITUATION OF THE CAPITAL MARKET IN THE MEMBER STATES , AND TO REDUCE TO 2 % THE MINIMUM RATE PAYABLE BY BENEFICIARIES IN CERTAIN REGIONS ;

WHEREAS THE ITALIAN GOVERNMENT HAS REQUESTED AUTHORIZATION TO RAISE THE LEVEL OF THE INTEREST RATE SUBSIDY TO 9 % AND , IN THE MEZZOGIORNO AND THE LESS-FAVOURED REGIONS OF NORTHERN AND CENTRAL ITALY INCLUDING THEIR MOUNTAIN AREAS , TO 11 % ;

WHEREAS THE ITALIAN GOVERNMENT HAS REQUESTED THAT THE MINIMUM RATE PAYABLE BY BENEFICIARIES IN THE MEZZOGIORNO AND IN THE LESS-FAVOURED REGIONS OF NORTHERN AND CENTRAL ITALY BE REDUCED TO 2 * 4 % WITHOUT , HOWEVER , AFFECTING ARTICLE 9 ( 1 ) OF COUNCIL DIRECTIVE 75/268/EEC OF 28 APRIL 1975 ON MOUNTAIN AND HILL FARMING AND FARMING IN CERTAIN LESS-FAVOURED AREAS ( 2 ) ;

WHEREAS THE ITALIAN GOVERNMENT HAS FURTHERMORE REQUESTED THAT THE EXPENDITURE RESULTING FROM THE INCREASE IN THE SUBSIDY BE DECLARED ELIGIBLE FOR ASSISTANCE ;

WHEREAS THE CURRENT RATE OF 13 * 4 % IN ITALY FOR LONG-TERM AGRICULTURAL LOANS AND THE INTEREST RATE SUBSIDIES PROVIDED FOR OF 9 AND 11 % WILL MEAN THAT THE BENEFICIARY IS CALLED UPON TO BEAR A RATE OF INTEREST IN EXCESS OF THE MINIMA LAID DOWN BY DIRECTIVE 72/159/EEC ;

WHEREAS THE ECONOMIC AND AGRICULTURAL DEVELOPMENT OF THE MEZZOGIORNO AND THE LESS-FAVOURED REGIONS OF NORTHERN AND CENTRAL ITALY , INCLUDING THEIR MOUNTAIN AREAS , IS CLEARLY LESS ADVANCED THAN THAT OF THE OTHER REGIONS ;

WHEREAS PARTICIPATION BY THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND IN THE EXPENDITURE RESULTING FROM THE INCREASE IN THE SUBSIDY IS RECOMMENDED ,

HAS ADOPTED THIS DECISION :

ARTICLE 1

THE ITALIAN REPUBLIC IS HEREBY AUTHORIZED TO INCREASE THE INTEREST RATE SUBSIDY PROVIDED FOR IN THE FIRST SUBPARAGRAPH OF ARTICLE 8 ( 2 ) OF DIRECTIVE 72/159/EEC TO 11 % FOR THE MEZZOGIORNO AND THE LESS-FAVOURED REGIONS OF NORTHERN AND CENTRAL ITALY , INCLUDING THEIR MOUNTAIN AREAS , AND TO 9 % FOR THE OTHER REGIONS .

ARTICLE 2

THE ITALIAN REPUBLIC IS HEREBY AUTHORIZED TO REDUCE THE MINIMUM RATE PAYABLE BY THE BENEFICIARY PROVIDED FOR IN THE FIRST SUBPARAGRAPH OF ARTICLE 8 ( 2 ) OF DIRECTIVE 72/159/EEC TO 2 * 4 % IN THE MEZZOGIORNO AND THE LESS-FAVOURED REGIONS OF NORTHERN AND CENTRAL ITALY .

HOWEVER , THE PROVISIONS REFERRED TO IN THE FIRST SUBPARAGRAPH SHALL NOT AFFECT ARTICLE 9 ( 1 ) OF DIRECTIVE 75/268/EEC .

ARTICLE 3

THE EXPENDITURE INCURRED BY THE ITALIAN REPUBLIC PURSUANT TO ARTICLE 1 OF THIS DECISION SHALL BE ELIGIBLE FOR ASSISTANCE FROM THE GUIDANCE SECTION OF THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND WITHIN THE LIMIT FIXED BY THE FIRST SUBPARAGRAPH OF ARTICLE 19 ( 3 ) OF DIRECTIVE 72/159/EEC .

ARTICLE 4

THIS DECISION SHALL APPLY UNTIL 31 DECEMBER 1977 .

ARTICLE 5

THIS DECISION IS ADDRESSED TO THE ITALIAN REPUBLIC .

DONE AT LUXEMBOURG , 6 APRIL 1976 .

FOR THE COUNCIL

THE PRESIDENT

J . HAMILIUS