← back to the state act
Inception date: 25 Mar 2010 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

By letter dated 2 March 2010, registered the same day, the Italian authorities notified, in line with Article 108 (3) of the Treaty on the Functioning of the European Union (hereinafter "TFEU") their intention to grant a rescue aid to Vinyls Italia S.p.A. in amministrazione straordinaria.
Vinyls Italia S.p.A. (hereinafter "Vinyls" or the "Company"), created in 1984, is active in the production of PolyVinyl Chloride (hereinafter "PVC"), a plastic material widely used in several industrial and commercial sectors, as well as Vinyl Chloride Monomer (VCM), mainly used to create polymers.
The envisaged financial support consists of a State guarantee on credit lines to be provided by private banks for the amount of EUR 31.5 million.
The Commission concluded that the measure contains state aid and gave the following assessment:
"Firstly, the measure at stake consists of a guarantee which is selective as it is deemed to favour a single company, Vinyls. Secondly, the measure will be financed by reserves accumulated in the general budget of Italy, and thus undoubtedly by a Member State and through State resources. Thirdly, the guarantee will provide the Company with access to credit lines that -being subject to a collective insolvency procedure- it would not have been able to obtain at comparable conditions. Under those circumstances, in accordance with points 3 (2) and 4 (1) (a) of the Notice of 20 June 2008 on the application of Articles 87 and 88 of the EC Treaty to State Aid in the form of Guarantees, the guarantee must be considered to confer an advantage. Finally, as there is worldwide trade in PVC and VCM, the measure is apt to improve the position of the recipient in relation to its competitors in Italy and the EU, and it consequently distorts competition and affects trade between Member States." (par. 12 of the letter from the EC to Italy - Brussels, 25.03.2010 C(2010)2084).
Article 107(3)(b) TFEU enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 107 (3)(b) by the Court of First Instance.
The Commission referred to its Communication on the financial crisis (Temporary Framework) and concluded that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 107 (1) TFEU, it is compatible with the internal market according to the Article 107 (3)(b) TFEU. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis. (par. 14-26 of the letter ).
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.




282 Wearing apparel, except fur apparel
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392620 Articles of apparel and clothing accessories (including gloves, mittens and mitts)
347 Plastics in primary forms
3914 Ionexchangers based on polymers of headings 39.01 to 39.13, in primary forms.
391400 Ionexchangers based on polymers of headings 39.01 to 39.13, in primary forms.
363 Semi-manufactures of plastics
3916 Monofilament of which any crosssectional dimension exceeds 1 mm, rods, sticks and profile shapes, whether or not surface worked but not otherwise worked, of plastics.
391610 Of polymers of ethylene
391620 Of polymers of vinyl chloride
391690 Of other plastics
3917 Tubes, pipes and hoses, and fittings therefor (for example, joints, elbows, flanges), of plastics.
391710 Artificial guts (sausage casings) of hardened protein or of cellulosic materials
391721 Of polymers of ethylene
391722 Of polymers of propylene
391723 Of polymers of vinyl chloride
391729 Of other plastics
391731 Flexible tubes, pipes and hoses, having a minimum burst pressure of 27.6 MPa
391732 Other, not reinforced or otherwise combined with other materials, without fittings
391733 Other, not reinforced or otherwise combined with other materials, with fittings
391739 Other
391740 Fittings
3920 Other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials.
392010 Of polymers of ethylene
392020 Of polymers of propylene
392030 Of polymers of styrene
392043 Containing by weight not less than 6 % of plasticisers
392049 Other
392051 Of poly(methyl methacrylate)
392059 Other
392061 Of polycarbonates
392062 Of poly(ethylene terephthalate)
392069 Of other polyesters
392071 Of regenerated cellulose
392079 Of other cellulose derivatives
392091 Of poly(vinyl butyral)
392092 Of polyamides
392099 Of other plastics
3921 Other plates, sheets, film, foil and strip, of plastics.
392111 Of polymers of styrene
392112 Of polymers of vinyl chloride
392113 Of polyurethanes
392114 Of regenerated cellulose
392119 Of other plastics
392190 Other
364 Packaging products of plastics
3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.
392310 Boxes, cases, crates and similar articles
392321 Of polymers of ethylene
392329 Of other plastics
392330 Carboys, bottles, flasks and similar articles
392340 Spools, cops, bobbins and similar supports
392350 Stoppers, lids, caps and other closures
392390 Other
369 Other plastics products
3918 Floor coverings of plastics, whether or not selfadhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in Note 9 to this Chapter.
391810 Of polymers of vinyl chloride
391890 Of other plastics
3919 Selfadhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls.
391910 In rolls of a width not exceeding 20 cm
391990 Other
3922 Baths, showerbaths, sinks, washbasins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware, of plastics.
392210 Baths, showerbaths, sinks and washbasins
392220 Lavatory seats and covers
392290 Other
3924 Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics.
392410 Tableware and kitchenware
392490 Other
3925 Builders' ware of plastics, not elsewhere specified or included.
392510 Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 l
392520 Doors, windows and their frames and thresholds for doors
392530 Shutters, blinds (including Venetian blinds) and similar articles and parts thereof
392590 Other
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392610 Office or school supplies
392630 Fittings for furniture, coachwork or the like
392640 Statuettes and other ornamental articles
392690 Other
392 Non-metal wastes or scraps
3915 Waste, parings and scrap, of plastics.
391510 Of polymers of ethylene
391520 Of polymers of styrene
391590 Of other plastics

Please report this page in case you detect an inaccuracy in its content.