ANNOUNCED AS TEMPORARYNo
Capital injection and equity stakes (including bailouts)
On 20 January 2016, the European Commission announced in a press release that it had initiated an investigation into the state aid provided by Italy to its bankrupt steel producer Ilva in Taranto, where theEU's largest steel plant is located.
The decision comes after several European institutions, including the industry body UK Steel, launched a complaint with the Commission. Inter alia, they accussed Italy of handing the company 100 million EUR for environmental modifications, which are allegedly meant to keep the site operational.
Ilva has been in turmoil since May 2013 after facing criminal investigation over environmental damages and has been managed by a state-appointed Extraordinary Commissioner since then. The company has been declared insolvent on 31 January 2015. On 21 October 2015, the Italian government notified the EC of a measure which would allow the Extraordinary Commissioner to take loans for the company of up to 800 million EUR. The government also decided to provide urgent aid of 300 million EUR in December 2015. According to EC's press release, the total state aid amounts to 2 billion EUR.
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.
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