30. 12. 89 ‘Official Journal of the European Communities No L' 394/5 COMMISSION DECISION of 24 May 1989 prohibiting the aid planned by the Italian Government for the storage and marketing of olive oil (Only the Italian text is authentic) - (89/660/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, | Having regard to thé Treaty establishing the European Economic Community, and in particular' the first subparagraph. of Article 93 (2) thereof, " Having regard to Council Regulation No 136/66/EEC of . 22 September 1966 on the establishment of a common - organization of -the market in oils and fats (1), as last amended by Regulation (EEC) No 1225/89 (2), and in particular Article 33 thereof, Having given notice to the parties concerned to submit their comments (3); in accordance with Article 93 of the Treaty, and having regard to those comments, Whereas: I 1.  Byletter of 6 April 1988 the Commission notified the Italian Government, inter alia, that: — it had received information to the effect that Italy was allegedly planning to-grant, in respect of January and February 1988, monthly aid of Lit 5 000 per quintal to assist the storage and marketing of olive oil, . — it wished to know whether the Italian Government was planning such a scheme and, if so, to communicate it to the  Commission - pursuant to Article 93 (3) of the Treaty. 2. By telex of 16 June 1988 the Commission again asked the Italian Government to provide the mformatlon specified m point 1. 3. By letter of 4 July 1988 the Italian . Permanent Representative notified the Commission of circular No 28148 of 30 December 1986 of the Minister of Agriculture. ' 4, Thesaid circular provides that, with a view of reducing storage costs, olive oil producers’ groups and associations thereof are to be granted monthly aid of Lit § 000 per quintal () O] No 172, 30. 9. 1966, p. 3025/66. (*) OJ No L 128, 11. 5. 1989, p. 15. ~ (%) OJ No C 306, 1. 12. 1988, p. 4. of oil in storage. The Italian Government said that the measure was being introduced because the exceptional volume of olive production in 1987/88 had brought about a serious crisis on the market and, by the same token, a sharp fall in prices. In its letter - of 4 July 1988 the Italian Government pointed out that the measures would apply for two months only and that the period of storage of the olive oil would not extend beyond the date of entry irito force of the Community rules on the storage of olive oil — which were in the process-of being adopted — and in no case beyond 28 February 1988. 5. By lcttcf of 5 August 1988 the Commission notified the Italian Government, inter alia, that: — it was regrettable that; by not notifying it of the circular in good time, the Italian Government had failed to fulfil its obligations pursuant to Article 93 (3) of the Treaty, — after scrutinizing the provisions in question, it had decided - to -initiate the procedure provided for in Article 93 (2) of the Treaty in respect: of that measures, — inits opinion, the scheme constituted operating aid which " could have no lasting effect on the development of the sector concerned; its effects would cease to be felt as soon as the scheme ended; the Commission regarded such measures as incompatible with the common market, — moreover, the measure infringed Regulation -No 136/66/EEC inthat the latter should be regarded as complete and exhaustive, thus precluding unilateral supplementary measures by the Member States in the “operation of the market organization, — accordingly, the measure did not qualify as an exception as provided for in Article 92 (3) of the Treaty, — by virtue of Article 93 (3) of the Treaty, the measure in question could not be implemented until the procedure provided for in Article 93 (2) had resulted m a final decision, — it wished to draw the Italian Government’s attention to the letter which the Commission had sent to all the Member States on 3 November 1983 regarding their