ITALY: EC rejects Sicilian compensation claim

By Alan Osborn | 19 October 2001

The European Commission has dashed the hopes of Sicilian wine-growers awaiting compensation from the Italian government for unused replanting rights. The island's regional government had planned to pay growers whose rights had become worthless as a result of drought in 1988-1990 some 2bn Lire (US$938,504). Brussels now says the aid is incompatible with the rules of the common organisation of the EU market in wine, because the offer of a grant in 1995 was made too late.

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The European Commission has dashed the hopes of Sicilian wine-growers awaiting compensation from the Italian government for unused replanting rights. The island's regional government had planned to pay growers whose rights had become worthless as a result of drought in 1988-1990 some 2bn Lire (US$938,504). Brussels now says the aid is incompatible with the rules of the common organisation of the EU market in wine, because the offer of a grant in 1995 was made too late.

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