91999E0742

WRITTEN QUESTION E-0742/99

by Roberta Angelilli (NI) to the Commission

(29 March 1999)

Subject: Redundancies at the Milani Fabriano paper mills

The recently revealed plans designed to improve the efficiency and organisation of "Cartiere Milani Fabriano SpA", of which 98,2 % belongs to the Italian State Printing Works and therefore the Ministry of Finance, include the aim of making redundant 430 of the 950 workers, while at the same time continuing to make new investments, launch new industrial initiatives and to make use of outsourcing.

In view of the above, will the Commission say:

1. whether it believes that the business policy approved by the State Printing Works, and therefore the Ministry of Finance, should include the protection of jobs as one of its main objectives;

2. whether it considers it appropriate to monitor these current developments, given the sensitive nature of the sector, which produces watermarked paper for banknotes and other securities, and which may produce the paper for the euro;

3. whether the inevitable weakening of the company caused by the above plan and its expected privatisation could result in its being placed on the market at a much lower price than its true value, thereby distorting free competition and the market;

4. what measures it could take to protect the prestigious brand-name of the company in question;

5. what its general views are on the matter?

Answer given by Mr Van Miert on behalf of the Commission

(20 April 1999)

The Commission by decision of 28 October 1998, decided to open an Article 93(2) procedure, with respect to possible aid granted by Italy to Poligrafico and its controlled companies. The Italian government submitted observations on 1 February 1999. The Commission found those observations incomplete and requested additional information in order to assess the case. At present, the Commission has not received any restructuring plan for the Poligrafico group, nor for Cartiere Miliani which it controls.

The Commission is not competent to evaluate the decisions of industrial policy adopted by national governments aimed at restructuring their undertakings. However, should the Commission establish, on the basis of the information received, the presence of state aid in the sense of Article 92 of the EC Treaty in favour of Poligrafico or Cartiere Miliani, it will assess it under Article 92, paragraph 2 and 3, of the Treaty.

Should the Italian government decide to privatise public undertakings, such as Cartiere Miliani, the Commission will follow the matter, in order to ensure that the procedures adopted will guarantee transparency and the absence of state aid to both the privatised company and the possible buyers.

In any event, if there are collective redundancies falling under Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies(1) the national implementing measures will be applicable to them.

(1) OJ L 225, 12.8.1998.