State aid - Loans at reduced rates intended to make it possible to become established in certain non-member countries - Effect on trade between Member States and distortion of competition - Statement of reasons.

Judgment of the Court of First Instance (Second Chamber) of 6 September 2006 – Italy and Wam v Commission (Joined Cases T-304/04 and T-316/04) State aid – Loans at reduced rates intended to make it possible to become established in certain non-member countries – Effect on trade between Member States and distortion of competition – Statement of reasons State aid – Commission decision finding aid to be incompatible with the common market (Arts 87(1) EC and 253 EC) (see paras 60-78) Re: APPLICATION for annulment of Commission Decision 2006/177/EC of 19 May 2004 on State aid No C 4/2003 (ex NN 102/2002) implemented by Italy for WAM SpA (OJ 2006 L 63, p. 11). Operative part The Court: Annuls Commission Decision 2006/177/EC of 19 May 2004 on State aid No C 4/2003 (ex NN 102/2002) implemented by Italy for WAM SpA (OJ 2006 L 63, p. 11); Dismisses the actions as to the remainder; Orders the Commission to bear its own costs and to pay those incurred, in Case T-304/04, by the Italian Republic and, in Case T-316/04, by Wam, including those relating to the interim proceedings.