IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Feb 2009 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 8 December 2008 the Italian authorities notified their intention to grant a rescue aid to Antonio Merloni S.p.A., in Amministrazione Straordinaria ("A.S.").
 
Antonio Merloni S.p.A. is a manufacturing company created in 1989 from the consolidation of AR.DO -a company established by Mr Antonio Merloni in 1968- with ICEM, one of the independent units derived from the split among his descendents of a company founded in 1930 by Aristide Merloni. Antonio Merloni S.p.A. is the parent company of the Antonio Merloni Group which is active in the white goods market segment, i.e. producing and distributing gas tanks, washing machines, driers, dishwashers and fridges for third parties. At the end of September 2009 the Antonio Merloni Group employed 2950 workers.
 
As to the main reasons explaining the difficulties of the company, the Italian government refer to a remarkable decrease in demand in the whole industry and in particular for the Group Antonio Merloni, whose part of the production is also sold to big clients who commercialize it under their own brands. Reference was also made to some macroeconomic factors such as a significant increase in the cost of raw materials.
 
The financial support consists in a guarantee of EUR 68 million on credit lines to be provided by private banks. The Italian authorities undertook that the credits will be granted at an interest rate comparable to those observed for loans to healthy firms, and in any event above the reference rates adopted by the Commission for Italy.
 
The European Commission gave the following assessment:
 
"Firstly, the loan guarantee is selective as it is deemed to favor an individual company, Antonio Merloni S.p.A., parent company of the Antonio Merloni Group. 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, it will provide Antonio Merloni S.p.A. with access to credit lines that -being subject to an insolvency procedure- it would not have been able to obtain otherwise. Under those circumstances, point 4 (2) of the Notice of 11 March 2000 on the application of Articles 87 and 88 of the EC Treaty to State Aid in the form of Guarantees provides the presumption of the existence of an advantage, which has not been rebutted in the present case. Finally, as there is trade in electric and gas appliances like those produced and distributed by Antonio Merloni S.p.A. between Italy and other Member States, 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. 14 of the letter from the EC to Italy - Brussels, 28.1.2009 D(2009) 222).
 
However, the Commission concluded that the notified measure aimed at rescuing Antonio Merloni S.p.A. constitutes an aid within the meaning of Article 87(1), which is compatible with the common market in accordance with Article 87(3)(c) of the EC Treaty in the light of the criteria under the Community guidelines on State aid for rescuing and restructuring firms in difficulty.
 
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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AFFECTED SECTORS AND PRODUCTS

422 Tanks, reservoirs & containers of iron, steel or aluminium
7309 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
730900 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
429 Other fabricated metal products
7310 Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat insulated, but not fitted with mechanical or thermal equ
731010 Of a capacity of 50 l or more
731021 Cans which are to be closed by soldering or crimping
731029 Other
439 Other general-purpose machinery & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841850 Other furniture (chests, cabinets, display counters, showcases and the like) for storage and display, incorporating refrigerating or freezing equipment
841861 Heat pumps other than air conditioning machines of heading 84.15
841869 Other
841899 Other
8422 Dish washing machines; machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers;
842219 Other
842220 Machinery for cleaning or drying bottles or other containers
842230 Machinery for filling, closing, sealing, or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; machinery for aerating beverages
842240 Other packing or wrapping machinery (including heatshrink wrapping machinery)
842290 Parts
446 Machinery for textile, apparel & leather production; parts
8450 Household or laundrytype washing machines, including machines which both wash and dry.
845020 Machines, each of a dry linen capacity exceeding 10 kg
845090 Parts
448 Domestic appliances & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841810 Combined refrigeratorfreezers, fitted with separate external doors
841821 Compressiontype
841829 Other
841830 Freezers of the chest type, not exceeding 800 l capacity
841840 Freezers of the upright type, not exceeding 900 l capacity
8422 Dish washing machines; machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers;
842211 Of the household type
8450 Household or laundrytype washing machines, including machines which both wash and dry.
845011 Fullyautomatic machines

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