91999E0904

WRITTEN QUESTION P-0904/99

by Vincenzo Viola (PPE) to the Commission

(7 April 1999)

Subject: Alleged state aid for the Banco di Sicilia

Transfer of the assets and liabilities of the Sicilcassa Spa to the Banco di Sicilia was made possible by intervention by the inter-bank deposit protection fund and implementation of the relief measures provided for in the Ministerial Decree of 27 September 1974. The advances paid by the Bank of Italy under that decree, the amount of which is known as payment has already commenced - 5 000 billion lire - can be regarded as state aid as mentioned by the Commission in one of the 14 points on which the Italian Government has been asked for clarification.

Has the Commission received the explanations requested about the intervention of the Bank of Italy, particularly as regards the amount involved, and is it compatible with freedom of competition?

Answer given by Mr Van Miert on behalf of the Commission

(21 April 1999)

The Honourable Member has enquired as to whether exhaustive documentation was submitted to the Commission by the Italian Government following the initiation of proceedings under Article 93(2) of the ECTreaty(1). He also asks for the Commission's views on whether the measures taken by the Banca d'Italia in the winding-up of Sicilcassa are compatible with Community law.

Firstly, it should be pointed out that the Italian Government has submitted all of the documents requested by the Commission, except for the final version of the strategy devised by Mediocredito Centrale, which sets out the industrial plan underpinning the increase in the capital of the Banco that is underwritten by Mediocredito. This plan will be submitted to the Commission in the near future.

As soon as the Commission has all the information requested it will examine the compatibility of the measures proposed by the Italian Government to rescue and rehabilitate the Sicilian banks.

(1) OJ C 297, 25.9.1998.