IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 19 Dec 2012 | Removal date: open ended
Still in force

Financial grant

On 14 November 2012, the Italian Government notified the European Commission about a state aid measure to compensate the damage caused by the earthquakes of 20 and 29 May 2012 in the districts of Bologna, Ferrara, Modena, Reggio Emilia, Mantova, Cremona and Rovigo.
 
The two earthquakes (respectively 5.9 and 5.8 magnitude on the Richter scale) caused significant economic loss. In districts mentioned above 20% of the cultivable land and 18.7% of the agricultural undertakings were damaged with an estimated loss of EUR13.27bn.
The aid measure applies to undertakings involved in the production, processing and commercialization of agricultural, fishery and aquaculture products listed in Annex I of the TFEU. The aid can be awarded until 29 May 2015 and the allocated budget is EUR2.66bn.
 
The aid is awarded in form of direct grants, guarantees, interest rate subsidies and subsidized financial leasing to cover material damages and expenses incurred for the partial suspension or relocation of business activity.'The proposed aid measure is financed with public resources and favors a limited set of enterprises, thus conferring an advantage to farmers and local undertakings that were damaged by the earthquake. As the beneficiaries operate in a highly competitive sector of the internal market, the measure can alter competition at the EU level. The proposed measure constitutes State aid within the meaning of Article 107(1) TFEU'. 'P.8 letter of the EC to Italy, Brussels, 19.12.2012; C (2012) 9471 final'
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

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