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EU court rules Italy milk quotas illegal

Staff Writer |
The European Court of Justice rejected Italy's appeal on its milk quotas, saying that allowing installments to be extended constituted illegal State aid.

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It ruled that Rome must pay interests from 2003 onwards.

In 2003 the European Union authorised Italy to stand in for producers and pay the milk quotas for the periods from 1995-6 and 2001-2, and to recover the sums from the producers in 12 annual installments, without interest.

In order to tackle the serious crisis in the dairy sector, in 2011 Italy passed a law allowing milk producers a six-month extension on paying one of the instalments. Brussels took measures against this unilateral decision.

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