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IP/99/887

Brussels, 24 November 1999

Commission terminates state aid procedure in respect of exemptions from social security charges granted to firms located in Venice and Chioggia between 1995 and 1997.

The Commission has approved aid to firms in Venice and Chioggia in the form of reductions in social security charges granted for job creation, as provided for in Article 2 of the Ministerial Decree of 5 August 1994; this approval applies only for SMEs, other firms located in an area eligible for regional aid and any firm recruiting categories of workers experiencing particular difficulties entering or re-entering the labour market. Aid for maintaining existing jobs, as provided for in Article 1 of the Ministerial Decree of 5 August 1994 has been declared incompatible with the common market.

The Commission found that the aid provided for in Article 2 of the Ministerial Decree of 5 August 1994 and granted in the form of reductions in social security charges for job creation in SMEs is compatible with the common market. The aid is also compatible if it is granted to firms which do not rank as SMEs but which carry on their business in an area eligible for regional aid. It is also compatible with the common market when granted to any type of firm which recruits groups of workers experiencing particular difficulties entering or re-entering the labour market.

The aid granted to large firms not located in an area eligible for regional aid, provided for in Article 2 of the Ministerial Decree of 5 August 1994, and the aid for maintaining existing jobs, provided for in Article 1 of the same Decree, are incompatible with the common market.

The Commission also found that aid to the municipal firms ASPIV and Consorzio Venezia Nuova is compatible with the common market. The measures applied to the municipal firms ACTV, Panfido SpA and AMAV do not constitute aid within the meaning of Article 87 of the Treaty.


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