EU OKs €6B Italian Support Business Affected By Coronavirus Outbreak

The European Commission has approved three Italian schemes, with an overall budget of €6 billion (US$7.07 billion), mainly consisting of incentives to the recapitalization by private investors of small and medium-sized enterprises (SMEs) affected by the coronavirus outbreak. 

The schemes, which are complementary among each other, are designed to incentivize the mobilization of private investments. All schemes will be accessible to companies that have faced a severe reduction of revenues in March and April 2020, provided they approve and execute a capital increase. The schemes therefore aim at enhancing the access to external financing of those companies that are most severely affected by the economic impact of the coronavirus outbreak, thus helping them to ensure the continuation of their activities.

The Commission found that aid to the investees under the three schemes is in line with the conditions set out in the Temporary Framework. As regard to the aid to the investors under the first scheme, the Commission assessed the measure under EU State aid rules, and in particular Article 107(3)(b) TFEU, which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance to their economy. The Commission found that the aid is in line with the principles set out in the EU Treaty and the general principles set out in the Temporary Framework.

Full Content: Europa

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