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STATE AIDS / FRANCE  
Aid scheme No C 36/94  

The Commission has decided  to adopt a final negative decision under Articles
92  and 93  of the Treaty  with regard  to state  guarantees on loans  to pig
producers through the STABIPORC fund based on private resources.

The procedure provided  for in Article 93(2)  of the Treaty was  initiated in
July 1994  (OJ No L  335, 23.12.1994,  p.82) with regard  to this aid  scheme
because   the interest-rate reductions from  which the  pig producers benefit
when advanced  funds by  STABIPORC from  private resources are  based on  the
existence of a  state guarantee  from the  Office national  interprofessionel
des viandes,  de l'élevage et  de l'aviculture (OFIVAL -  National Bureau for
the Meat, Livestock and Poultry Trade) backing these resources.

This state guarantee is  considered by the Commission  to be an  infringement
of Community rules concerning the common organization the market in pigmeat.

The  Commission has therefore decided to ask the French Government to refrain
in  future from granting  such aid,  and to  recover monies  already granted.
Interest on these sums as  from the date when the scheme  was introduced must
also be paid.

The amount of aid  granted comes to FF 1 617 738  (ECU 249 650). This request
for recovery is in line with current Commission policy based  on the case law
of the Court of Justice.

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