State aid - Aid scheme established by the Italian authorities for certain undertakings for collective investment in transferable securities specialised in shares of small- and medium-capitalisation companies - Decision declaring the aid to be incompatible with the common market - Obligation to state reasons - Selective nature of the measure - Effect on trade between the Member States and distortion of competition - Article 87(3)(c) EC.

Judgment of the Court of First Instance (Fifth Chamber) of 4 March 2009 – Italy v Commission (Case T-424/05) State aid – Aid scheme established by the Italian authorities for certain undertakings for collective investment in transferable securities specialised in shares of small- and medium-capitalisation companies – Decision declaring the aid incompatible with the common market – Obligation to state reasons – Selective nature of the measure – Effect on trade between the Member States and distortion of competition – Article 87(3)(c) EC 1.                     Acts of the institutions – Statement of reasons – Contradiction – Effects (Art. 253 EC) (see para 67) 2.                     State aid – Examination by the Commission – Decision to open the formal investigation procedure under Article 88(2) EC (Art. 88(2) EC; Council Regulation No 659/1999, Art. 6(1) and (7)) (see paras 69-70) 3.                     Acts of the institutions – Statement of reasons – Obligation – Scope – Commission decision on State aid (Arts 87(1) EC and 253 EC) (see paras 78, 85) 4.                     State aid – Effect on trade between Member States – Adverse effect on competition – Aid of little importance in a sector with lively competition (Art. 87(1) EC) (see paras 153-156) 5.                     Actions for annulment – Pleas in law – Pleas that may be raised against a Commission decision on State aid (Arts 88(2) EC and 230 EC) (see paras 169-171) 6.                     State aid – Prohibition – Exceptions (Art. 87(3)(c) EC) (see paras 174-175, 179) Re: ACTION for annulment of Commission Decision 2006/638/EC of 6 September 2005 on the aid scheme implemented by Italy for certain undertakings for collective investment in transferable securities specialised in shares of small- and medium-capitalisation companies listed on regulated markets (OJ 2006 L 268, p. 1). Operative part The Court: 1. Dismisses the action; 2. Orders the Italian Republic to pay the costs.