L 243[36 Official Journal of the European Communities 28.9.2000 COMMISSION COMMISSION DECISION of 30 March 1999 on the State aid which the Region of Sardinia (Italy) granted to the milk sector (notified under document number C(1999) 902) (Only the Italian text is authentic) (2000/580/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first paragraph of Article 93(2) thereof, Having called on interested parties to submit their comments pursuant to the provision(s) cited above (') and having regard to their comments, Whereas: () PROCEDURE Following a complaint, by letter dated 24 January 1996, the Commission requested the Italian Government to notify the aid measures covered by Decision No 47/17 of the Regional Executive of the Sardinia Region of 24 October 1995 (hereinafter referred to as ‘Decision No 47/17). By letter dated 1 March 1996, the Italian Permanent Representation to the European Union notified the measures in question. By letter dated 16 October 1996 the Commission informed Italy of its decision to initiate the procedure laid down in Article 93(2) of the EC Treaty in respect of this measure. The Commission decision to initiate the procedure was published in the Official Journal of the European Communi- ties (}). The Commission invited interested parties to submit their comments on the measure. The Commission received comments from interested parties. It forwarded them to Italy, which was given the () O] C 87, 18.3.1997, p. 6. () See footnote 1. opportunity to react; its comments were received by letter dated 17 June 1997. DESCRIPTION Article 16 of Sardinian Regional Law No 9 of 13 July 1962 (hereinafter referred to as ‘Law 9/62’) provides for the grant of aid in the form of reduced interest rates on short-term loans for the operation of cooperatives and producer groups processing sheep's and goat's milk into cheese. Article 16 provides for a maximum rate of interest of 2 % to be paid by recipients and a regional guarantee on loans of up to 80 % of the amount due. That Law has never been notified under Article 93(3) of the Treaty. The compatibility of the aid provided for therein with the common market has never therefore been examined. Decision No 47/17 lays down the rules for granting the aid provided for in the abovementioned Article 16 of Law 9/62 for the 1995/1996 agricultural year. No infor- mation has been supplied on the rules of application adopted for previous years. The types of loan concerned are: (a) operating loans (for cooperatives only) amounting to ITL 250 per litre of milk with a ceiling fixed on the basis of production in the previous year; (b) loans to cover advance payments to members (of cooperatives and producer groups). These loans amount to ITL 1 150 per litre of sheep's milk and ITL 850 per litre of goat's milk. The duration of loans can be set by the financial insti- tute at 18 or 36 months (based, among other things on the type of cheese produced).