91998E2640

WRITTEN QUESTION E-2640/98

by Alexandros Alavanos (GUE/NGL) to the Commission

(1 September 1998)

Subject: Settlement of debts of agricultural cooperatives in Greece

It has been reported in the Greek press that the Commission is considering whether the measures decided on by the Greek Government by Law 2538/97 concerning the debts of agricultural cooperatives are compatible with Community provisions on state aid.

Since the arrangements provided for by the law are of critical importance for the operation of cooperatives in Greece and since it is imperative that the situation be clarified as rapidly as possible, will the Commission say: Do the provisions and implementation of Law 2538/97 concerning the settlement of the debts of agricultural cooperatives raise any problems and, if so, where do these problems lie and what procedures exist to tackle them and ensure that the law can be applied?

Answer given by Mr Fischler on behalf of the Commission

(30 September 1998)

The Commission has indeed expressed doubts as to the compatibility with the common market of various measures provided for in Greek Law No 2538/97. On 31 March 1998, the Commission decided to initiate the State aids procedure provided for in Article 93(2) of the EC Treaty. This decision will shortly be published in the Official Journal.

The Article 93(2) procedure will therefore be followed so that the Commission can adopt a final decision on the compatibility of the aid with the competition rules.

The Commission objects to the measures under Law No 2538/97 because they meet the criteria laid down in Article 92(1) of the Treaty without qualifying for any of the exemptions provided for Article 92(2) and (3). In particular, the Commission considers that the aid envisaged by the Greek government to settle the debts of cooperatives does not appear to meet the conditions in the Community guidelines on State aid for rescuing and restructuring firms in difficulty(1).

(1) OJ C 283, 19.9.1997.