91998E0784

WRITTEN QUESTION E-0784/98 by Roberta Angelilli (NI) to the Commission (18 March 1998)

Subject: Italian trading rules

The recent legislative decree regulating trade approved by the Council of Ministers of the Italian Republic of 16 January 1998 (implementing the authorization in Article 4 of Law 59/97) provides for the total abolition of the licence for small trading concerns of up to 300 m2 (Article 4), abolition of the registration requirement for traders setting up in business (Article 5) and consolidation of the present 14 marketing tables in just two sectors: foodstuffs and non-foodstuffs (Article 5(1)).

These rules will lead to anarchy on the market and serious imbalances and will be detrimental to small concerns that represent about 900 000 small businesses; they will also lead to the loss of some 60 000 jobs. With this decree, the actual value of the trading licence (which in many cases is high) would be reduced to zero, causing economic damage to those who acquired it previously and possibly violating Article 85 of the EC Treaty. In fact new concerns would have an advantage in that they could compete unfairly precisely because they would not have to meet any costs - as in the past - to set up in business. Lastly, the liberalization granted for areas under 300 m2 will merely lead to an excessive proliferation of mini-markets, stores and discount warehouses in a country such as Italy in which the average size of trading concerns is around 100 to 120 m2.

1. Do these measures not conflict with Directives 64/223/EEC ((OJ 56, 4.4.1964, p. 863. )) and 68/363/EEC ((OJ L 260, 22.10.1968, p. 1. )) on wholesale and retail trading?

2. Do they not conflict with the Green Paper on trade (Bulletin of the EU, Supplement 2/97) which calls for grater liberalization of the sector but stresses the need to protect jobs at the same time?

3. Might they not endanger free competition?

4. What is the Commission's general reaction?

Answer given by Mr Monti on behalf of the Commission (28 May 1998)

The Commission is conducting a detailed investigation of the problem raised by the Honourable Member and will inform her of the outcome as soon as possible.