Below is a copy of the full text of the press release.

Commission approves aid in favour of olive-pomace enterprises in Spain
Brussels, 7 May 2004

The European Commission today authorised an aid to olive-pomace oil extracting, refining and bottling enterprises in Spain. This aid, in the form of loans totalling a maximum of € 30 million, was granted to mitigate the consequences of the suspension of the market following a health alert ordered by the Spanish administration in July 2001.

In July 2001, the Spanish administration suspended the olive-pomace oil market after the detection of certain compounds of the group of polycyclic aromatic hydrocarbons (among others, benzopirene, which is a carcinogenic product) in some oils.

In the absence of specific legislation on the subject, the Spanish authorities approved an Order laying down limits for certain polycyclic aromatic hydrocarbons in the olive-pomace oil. Producers were obliged to withdraw all olive-pomace oil from the market and to send it to be refined again to eliminate all traces of polycyclic aromatic hydrocarbons. The cost for the industry to adapt to these new qualifications was very high.

The Spanish authorities decided on an aid to finance the adjustment of production process to the new specifications set out in the Order. This state aid consisted of loans totalling a maximum of 30 million € with an interest rate (three percentage points) subsidised by the Ministry of Agriculture, which could also subsidise guarantees for those loans. The duration of the loans was one year and the size of the loans varied according to the beneficiary.

The Commission has now concluded that this aid is compatible with the Treaty as it facilitated the development of economic activities in the olive-pomace oil sector.