ANNOUNCED AS TEMPORARYYes
According to Italy, "With the present notification the Italian authorities wish to enhance the competitiveness of the agricultural sector in the Province concerned, by supporting investments in large enterprises in connection with the processing and marketing of agricultural products. [...]" The measure will be in force "From the date of the Commission decision until 31 December 2020. [and the] overall budget is EUR 50 000 000." The aid will be awarded in the form of direct grants. (para. 4, 6, 7 and 12 letter from the EC to Italy, Brussels 31.05.2016)
Based on the findings of the European Commission, "Pursuant to the case law of the Court of Justice, aid to an undertaking appears to affect trade between Member States where that undertaking operates in a market open to intra-EU trade. The aid beneficiaries operate in the market of agricultural products where trade between Member States takes place. The sector concerned is open to competition at EU level and therefore sensitive to any measure in favour of the production in one or more Member States. Therefore, the present scheme is liable to distort competition and to affect trade between Member States." (para. 27 letter from the EC to Italy, Brussels 31.05.2016)
In the GTA database, the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.
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