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: 11 Mar 2014 | Removal date: 09 Sep 2014
Still in force

Capital injection and equity stakes (including bailouts)

On 11 March 2014, theEuropean Commission allowed the Italian authorities to provide rescueaid in the form a guarantee to the Tosi Meccanica SpA.
 
The beneficiary is a companyfounded in 1881 manufacturing and selling steam and hydraulic turbinsfor industrial use and energy production, as well as heat exchangeapparatuses. The company is located in Legnano, the Italian region of Lombardy. It was declared insolvent in July 2013and put into extraordinary administration in the following month.
 
According to a specialcommissioner appointed in the context of the extraordinaryadministration, the company's "difficulties had to be found in theconstant financial deficit that characterised FTM's 'i.e. Franco Tosi Meccanica's' core activity" (para. 8, letter from the EC to Italy,Brussels 11.3.2014).
 
Based on the findings of theCommission, the Italian authorities shall provide the undertaking aidthrough the Ministry of Economic Development. "The measure consists of a6-month state guarantee for lines of credits that are being defined (overdraft facilities and bid/performance/advancepayments) in order to meet liquidity needs of EUR 20 million" (para.10).
 
Further, the Commissionpoints to the fact that the state aid "is apt to improve the competitiveposition of FTM in relation to its competitors in the internal market. It consequently distorts or threatens to distort competition and affects trade between Member States" (para.19).
 
A state measure in the GTAdatabase is assessed solely in terms of the extent to which itsimplementation affects the extent of discrimination against foreigncommercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840610 Turbines for marine propulsion
840682 Of an output not exceeding 40 MW
840690 Parts
8410 Hydraulic turbines, water wheels, and regulators therefor.
841090 Parts, including regulators
439 Other general-purpose machinery & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841940 Distilling or rectifying plant
841950 Heat exchange units
841960 Machinery for liquefying air or other gases
841989 Other
841990 Parts
445 Machinery for food, beverage & tobacco processing; parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841931 For agricultural products
841981 For making hot drinks or for cooking or heating food
448 Domestic appliances & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841911 Instantaneous gas water heaters
841919 Other
449 Other special-purpose machinery & parts
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841932 For wood, paper pulp, paper or paperboard
841939 Other
481 Medical & surgical equipment & orthopaedic appliances
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting
841920 Medical, surgical or laboratory sterilisers

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