Commission approves €31.9 billion Italian scheme to support companies affected by the coronavirus outbreak

Commission approves €31.9 billion Italian scheme to support companies affected by the coronavirus outbreak

The European Commission has approved a €31.9 billion Italian scheme to support companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The scheme consists of two measures: (i) limited amounts of aid; and (ii) support for uncovered fixed costs incurred during the period between March 2020 and December 2021 or parts of that period. The scheme will be open to all companies, irrespective of their size and of the sector where they operate (with the exception of the financial sector). Under the scheme, limited amounts of aid will take the form of (i) tax exemptions and reductions; (ii) tax credits; and (iii) direct grants. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the aid measure under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Many companies in Italy have seen their revenues significantly decline because of the coronavirus outbreak and of the measures necessary to limit its spread. This €31.9 billion scheme will enable Italy to support these companies by helping them meet their liquidity needs and cover the fixed costs that are not covered by their revenues. We continue working in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.”